The market capitalisation of six of the top ten most valuable companies has surpassed Rs 1.18 lakh crore

5 August 2022
3 mins read
The market capitalisation of six of the top ten most valuable companies has surpassed Rs 1.18 lakh crore

An Overview

Last week, six of the ten most valuable firms gained Rs 1,18,383.07 crore to their market capitalisation, with RIL contributing the most. The 30-share BSE benchmark has gained 619.07 points, or 1.03 percent, in the last week.

The gainers were RIL, Bajaj Finance, HDFC, TCS, Infosys, and Kotak Mahindra Bank, while the losers were HUL, ICICI Bank, and SBI. RIL’s market capitalisation increased by Rs 59,437.12 crore to Rs 16,44,511.70 crore.

Infosys increased its market capitalisation to Rs 7,48,580.98 crore by adding Rs 29,690.9 crore. The value of HDFC has increased by Rs 17,187 crore to Rs 5,41,557.77 crore, while TCS’ value has increased by Rs 5,715.04 crore to Rs 13,03,730.66 crore. Kotak Mahindra Bank’s market capitalisation increased by Rs 3,301.84 crore to Rs 4,11,183.32 crore, while Bajaj Finance’s increased by Rs 3,051.17 crore to Rs 4,57,355.51 crore.

HDFC Bank Ltd, on the other hand, saw its value drop by Rs 22,545.39 crore to Rs 8,60,436.44 crore. The market value of SBI has dropped to Rs 4,56,270.76 crore, down Rs 17,135.26 crore. HUL’s value dropped by Rs 3,912.07 crore to Rs 5,65,546.62 crore, while ICICI Bank’s value dropped by Rs 3,810.99 crore to Rs 5,39,016.40 crore.

Stock market soars, luring investors from both home and abroad

India’s burgeoning stock market is attracting both local and international investors to the financial, industrial, and technology corporations that dominate the country’s stock exchange. Both have set a seemingly unbroken line of new highs, fueled by causes such as simple demographics, governmental and economic policy, and geopolitical shifts.

The initial public offering this week for the parent firm of the digital payments network Paytm demonstrates the anticipation. The company raised $2.5 billion, making it the largest initial public offering in the country’s history and valuing the company at more than $20 billion. The offering reflected the growing importance of the financial and technology industries in a country where the majority of the population is young and enthusiastic about digital start-ups.

S&P BSE Sensex gained roughly 25% this year

At the same time, the government is attempting to make India more self-sufficient, which will benefit domestic firms that provide common goods and services, as well as bring more residents — and their money — into the official economy. In addition, the Indian central bank began a bond-buying programme this spring that is a scaled-down version of the one that has boosted global stock markets.

When you combine those characteristics, you’ve got a recipe for a retail investor bonanza: New securities-holding accounts have reached an all-time high, according to the Securities and Exchange Board of India.

The large investments that institutional investors from around the world are taking in firms that have gone public this year has boosted their confidence. This spring, India’s central bank began a smaller-scale bond-buying programme similar to the one that has boosted global stock markets.

 

Frequently Asked Questions (FAQs)

Q1. What is the formula for calculating market capitalisation?

Multiply the current price of a company’s stock by the total number of outstanding shares to get its market capitalisation.

Q2. Is market capitalisation a reliable metric?

The market capitalisation of a firm can provide investors with an indicator of the company’s size and can even be used to compare the size of two companies.

Q3. Does the market capitalisation of a company have an impact on its stock price?

Because the market cap is simply the company’s total outstanding shares multiplied by its share price, it has no direct impact on its share price. However, because it reflects a company’s perceived value in the eyes of investors, the share price can still rise.