The market capitalisation of the top 10 companies in India shrank by ₹1.55 lakh crore in one week, reflecting a significant decline in stock valuations. This drop was mainly driven by HDFC Bank and Bajaj Finance, which experienced the largest losses among the group.
- The combined market valuation of eight of the top 10 firms fell by ₹1.55 lakh crore last week.
- HDFC Bank’s market cap dropped by ₹55,506.95 crore, with its stock falling 5%.
- Bajaj Finance’s valuation decreased by ₹34,180.51 crore.
- Reliance Industries’ market cap declined by ₹27,065.08 crore.
- Tata Consultancy Services and Larsen & Toubro were the only companies to gain in valuation.
What caused the market cap decline among top companies?
During a holiday-truncated week, the Indian stock market experienced a downturn. The 30-share BSE Sensex fell by 1,605.44 points, or 2.15%, while the 50-share NSE Nifty dropped 546.15 points, or 2.36%. This bearish trend led to a broad decline in the market capitalisation of BSE-listed firms, which fell by ₹20,78,774.28 crore over four sessions, from ₹4,72,62,167.42 crore on October 16 to ₹4,51,83,393.14 crore.
Which companies saw the biggest losses?
Among the top 10 companies, eight faced losses in their market valuation. HDFC Bank led the decline with a ₹55,506.95 crore drop, bringing its market cap to ₹10,67,121.12 crore. Bajaj Finance followed with a ₹34,180.51 crore decrease, lowering its valuation to ₹5,77,146.21 crore.
Reliance Industries’ market cap fell by ₹27,065.08 crore to ₹16,10,372.11 crore. Life Insurance Corporation of India (LIC) saw a reduction of ₹21,062.24 crore, reaching ₹4,81,142.58 crore.
Other notable declines included Bharti Airtel, which lost ₹9,360.75 crore to ₹11,79,454.70 crore, State Bank of India with a ₹4,338.46 crore drop to ₹8,83,384.38 crore, Infosys down by ₹2,881.38 crore to ₹4,68,528.03 crore, and ICICI Bank decreasing by ₹1,276.53 crore to ₹10,01,594.91 crore.
Did any companies gain market value during the week?
Yes, Tata Consultancy Services (TCS) and Larsen & Toubro (L&T) were the only two among the top 10 companies to increase their market capitalisation. TCS’s valuation rose by ₹23,517.56 crore to ₹9,14,652.52 crore, while L&T’s market cap climbed by ₹1,788.66 crore to ₹5,01,513.72 crore.
Which companies are the most valued in India?
Reliance Industries remains the most valued company, followed by Bharti Airtel, HDFC Bank, ICICI Bank, Tata Consultancy Services, State Bank of India, Bajaj Finance, Larsen & Toubro, Life Insurance Corporation of India, and Infosys.
Frequently Asked Questions
Q: What is market capitalisation?
A: Market capitalisation is the total market value of a company's outstanding shares of stock. It is calculated by multiplying the current share price by the total number of outstanding shares.
Q: Why did the market cap of these companies decline?
A: The decline was due to a broad market downturn during the week, reflected in significant drops in major stock indices like the BSE Sensex and NSE Nifty.
Q: Which companies gained market value despite the overall decline?
A: Tata Consultancy Services and Larsen & Toubro saw increases in their market capitalisation during the same period.
