In terms of market capitalization, the value of 8 out of the top 10 companies of the country has increased by a combined Rs 1,21,270.83 crore (Rs 1.21 lakh crore) last week. During this period, Reliance Industries Limited was the top gainer.
The market cap of India's most valuable company has increased by Rs 53,653 crore during the week's trading. Now the market cap of the company has become Rs 20.65 lakh crore.
Apart from Reliance, the market cap of State Bank of India (SBI), Bharti Airtel, ITC, Tata Consultancy Services (TCS), HDFC Bank, LIC and Infosys has also increased.
Valuation of ICICI Bank and Hindustan Unilever reduced by ₹26,901.6 crore
There was a decline in the business of ICICI Bank and Hindustan Unilever (HUL) last week. The market cap of ICICI Bank fell by Rs 23,706.16 crore to Rs 9.21 lakh crore. Whereas the valuation of Hindustan Unilever declined by Rs 3,195.44 crore and came to Rs 6.97 lakh crore.
Last week, Sensex rose by 1,027.54 points.
Sensex touched a record level of 85,978 and Nifty of 26,277 on Friday, September 27. This was the 8th consecutive day when the market reached all-time high. However, later it saw a decline and the Sensex closed at 85,571 with a fall of 264 points. Nifty also fell by 37 points, it closed at the level of 26,178.
Out of 30 Sensex stocks, 15 rose and 15 declined. Out of 50 Nifty stocks, 29 rose and 20 declined. Whereas, one stock closed without any change. The maximum decline was 1.55% in the media sector of NSE. There was a decline of 1.19% in realty sector and 1.00% decline in banking sector. Whereas, Oil & Gas had the highest increase of 2.37%.
What is market capitalization?
Market cap is the value of the total outstanding shares of any company, i.e. all those shares which are currently held by its shareholders. It is calculated by multiplying the total number of issued shares of the company by their price.
Market cap is used to categorize shares of companies to help investors choose them according to their risk profile. Like large cap, mid cap and small cap companies.
Market Cap = (number of shares outstanding) x (price of shares)
How does market cap work?
Whether a company's shares will yield profit or not is estimated by looking at many factors. One of these factors is market cap. Investors can find out how big a company is by looking at the market cap.
The higher the market cap of the company, the better company it is considered to be. Stock prices rise and fall according to demand and supply. Therefore, market cap is the publicly perceived value of that company.
How does market cap fluctuate? It is clear from the formula of market cap that it is calculated by multiplying the total number of issued shares of the company by the stock price. That means if the share price increases then the market cap will also increase and if the share price decreases then the market cap will also decrease.
Graphics Source: VaskarAssets
