M-cap gains: Eight out of the top ten firms add over Rs 1.18 lakh crore

Eight out of the top ten valued companies added more than Rs 1.18 lakh crore collectively to their market cap, even as the BSE Sensex gained 1.28 per cent in the last week, when the special one-hour Muhurat trading on November 4 to mark Diwali and the new trading year Samvat 2078. The NSE Nifty too was up 1.39 per cent for that week and all key sectoral indices closed in the green.

Who led the charts?

Among the eight firms that added Rs 1.18 lakh crore to the market cap, the leaders were Tata Consultancy Services (TCS) and State Bank of India (SBI). The market cap of the former went up Rs 40,782 crore to touch Rs 12.98 lakh crore while SBI gained Rs 25,033 crore to take its m-cap to Rs 4.73 lakh crore.

Among the other companies that added to their m-cap include Infosys, which went up Rs 17,158 crore to touch Rs 7.18 lakh crore, while HDFC added Rs 10,153 crore to take its market cap to Rs 5.24 lakh crore. Also, Bajaj Finance, Hindustan Unilever, HDFC Bank and Kotak Mahindra Bank gained market cap to tale their valuations to Rs 4.54 lakh crore, Rs 6.97 lakh crore, Rs 8.82 lakh crore and Rs 4.07 lakh crore respectively.

The companies whose m-cap fell were Reliance Industries Ltd and ICICI Bank, although the former continues to be the most valued firm, trailed by TCS, HDFC Bank, Infosys and HUL. The market cap of RIL was at Rs 15.85 lakh crore.

Software company Infosys became the fourth Indian firm and second Indian software exporter after TCS to cross the $100 billion milestone in terms of market cap, back in August 2021. The other Indian companies that have touched or crossed this milestone are RIL, TCS and HDFC Bank.

Corporate earnings

Out of the 38 Indian companies in the Nifty universe, 22 have seen September quarter results that have exceeded analyst estimates, according to news reports. Three of them have met analyst estimates, the reports add. Also, according to data from news reports, the September quarter saw India Inc’s 985 companies, barring financials and banks, reporting a 36 per cent year-on-year increase in sales, in spite of high input costs.

Meanwhile, manufacturing activity in India gathered steam in October, touching a high of eight months. The IHS Markit Purchasing Managers’ Index increased to 55.9 for the month, rising consecutively for the fourth month.

As the curtains have come down on Samvat 2077, the benchmark indices, Sensex and Nifty have given nearly 40 per cent returns, according to reports. As the new trading year, Samvat 2078 has begun, the key factors that would have a role to play in the market performance and also the market capitalisation of companies would be oil prices, inflation and the possibility of an interest rate hike by the US Federal Reserve. Also, the Fed’s announcement to taper its monthly bond purchase starting from November 2021 is a factor that is likely to affect the markets globally.

In fiscal year 2021, the foreign portfolio investment flows into Indian equities was attributed to the stock market rally, aided by the liquidity in the global markets, as central banks kept interest rates low. India received Rs 2.74 lakh crore worth FPI inflows in the fiscal year 2021. Also, till the end of September this year, the combined holdings of foreign portfolio investors in Indian companies touched Rs 55 lakh crore, driven by the stock market rally and the rise in the number of companies FPIs have invested in India. According to reports, foreign investors have invested in 1370 companies, an all-time peak. The rise in FPI inflow into Indian stocks was also one factor for the market cap gains by top Indian firms.

Conclusion

Even as the new trading year Samvat 2078 has only begun, the market cap of eight out of the top ten highly valued firms in India has gone up by over Rs 1.18 lakh crore, according to news reports. The stock market rally in the recent past, opening up of business activity, and foreign portfolio investor ownership in Indian companies may have all contributed to the rising market cap of these firms.

FAQs

Which is India’s top firm in terms of market cap?

Reliance Industries, with a market cap of Rs 15.85 lakh crore, is India’s most valued company.

Which are the Indian companies that have joined the $100 billion m-cap club?

Reliance Industries Ltd, Tata Consultancy Services, HDFC Bank and Infosys are the four companies that have entered the $100 billion or more market cap club.

What is the market capitalisation increase of eight out of the top ten companies as of November 7, 2021?

The m-cap increase of eight out of the top ten most valued firms was over Rs 1.18 lakh crore, with TCS and SBI gaining the most.