Last week, the market cap of 7 out of the top-10 companies decreased by ₹2.05 lakh crore. Tata Consultancy Services and Reliance Industries suffered the most losses, while the value of some companies like HDFC Bank increased.

Business: There were huge fluctuations in the Indian stock market last week, which had a direct impact on the market capitalization of the top companies of the country. The combined value of 7 of the country’s 10 largest companies on the basis of market cap declined by about ₹2.05 lakh crore.

Tata Consultancy Services (TCS) was the company that suffered the biggest loss in this decline.

Biggest blow to TCS, decline of ₹66,699 crore

The market cap of IT sector giant TCS declined by ₹66,699 crore in a week to ₹8.67 lakh crore.

The impact of this decline in the market was most visible on the IT sector, where global demand and investor sentiment remained weak.

Reliance and other big companies will also be affected

The market value of Reliance Industries also declined by ₹50,670 crore to ₹17.96 lakh crore.

Apart from this, a decline was also recorded in the market cap of many big companies, which include:

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  • Bharti Airtel
  
  
  
  

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  • ICICI Bank
  
  
  
  

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  • Larsen and Toubro
  
  
  
  

These companies were affected by global uncertainty and domestic market pressure.

Some companies showed signs of strength

Amidst the decline, some companies also supported the market. HDFC Bank’s market value increased by ₹23,090 crore and reached ₹12.08 lakh crore.

Other than this

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  • Hindustan Unilever
  
  
  
  

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  • State Bank of India
  
  
  
  

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  • Bajaj Finance
  
  
  
  

Companies like also showed positive performance.

Sharp fall in Sensex and Nifty

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  • Last week there was a massive decline in the Indian stock market.
  
  
  
  

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  • The Sensex fell nearly 1,830 points (2.33%), while the Nifty 50 fell 455 points (1.87%).
  
  
  
  

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  • On the last trading day of the week, the Sensex fell by 1,000 points and closed at 76,664, while the Nifty fell at the level of 23,898.
  
  
  
  

What is market cap?

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  • Market cap means the total market value of a company, which is calculated by adding the price of all its issued shares.
  
  
  
  

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  • It is an important indicator of the company’s size and investor confidence.
  
  
  
  

Example:

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  • If a company has 1 crore shares and the price of one share is ₹20, then its market cap will be ₹20 crore.
  
  
  
  

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  • Impact of market cap on companies and investors
  
  
  
  

impact on companies

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  • Large market cap helps companies raise funds and expand
  
  
  
  

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  • The decline affects the financial capacity and investment attractiveness of companies.
  
  
  
  

impact on investors

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  • Investor wealth increases as market cap increases
  
  
  
  

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  • Fall hurts investors and increases market volatility
  
  
  
  

Why did this decline occur?

According to experts, there are several reasons behind this decline:

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  • Uncertainty in global market
  
  
  
  

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  • Selling by foreign investors
  
  
  
  

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  • Weakness in IT and auto sectors
  
  
  
  

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  • Geopolitical tensions and oil price fluctuations