In terms of market capitalization, the value of 9 of the top 10 companies of the country has increased by a combined Rs 95,523 crore in the last week’s trading. Reliance Industries was the top gainer during this period. The company’s market cap has increased by Rs 29,634.27 crore to Rs 20.30 lakh crore. Earlier, the company’s market cap was Rs 20 lakh crore. Apart from Reliance, the valuation of LIC, State Bank of India (SBI), Tata Consultancy Services (TCS), Infosys, Bharti Airtel, ICICI Bank also saw an increase during last week’s trading. At the same time, the market cap of HDFC Bank has decreased by Rs 4,835 crore during this period. Last week, the Sensex rose by 650. On the last trading day of the week, August 23, the stock market saw a rise. On the last trading day of the week, the Sensex closed at 81,086 with a gain of 33 points. Nifty also rose by 11 points, it closed at 24,823. Out of 30 Sensex stocks, 15 rose and 13 fell. Out of 50 Nifty stocks, 22 rose and 28 fell. Talking about the sectoral index of NSE, all except the auto sector declined. The auto sector rose by 1.12%. Whereas, Nifty Realty saw the maximum decline of 2.43%. At the same time, media fell by 1.29% and IT by 1.00%. What is market capitalization? Market cap is the value of the total outstanding shares of any company, that is, all the shares that are currently held by its shareholders. It is calculated by multiplying the total number of issued shares of the company with the price of the stock. Market cap is used to categorize the shares of companies, so that investors can choose them according to their risk profile. Such as large cap, mid cap and small cap companies. Market cap = (number of outstanding shares) x (price of shares) How does market cap work?
Whether a company’s shares will give profit or not is estimated by looking at several factors. One of these factors is market cap. Investors can find out how big a company is by looking at its market cap. The higher the market cap of a company, the better it is considered to be. Stock prices rise and fall according to demand and supply. Therefore, market cap is the public perceived value of that company. How does market cap increase or decrease?
It is clear from the market cap formula that it is calculated by multiplying the total number of issued shares of the company with the stock price. That is, if the share price increases, the market cap will also increase and if the share price decreases, the market cap will also decrease.
