In the last week’s trading, the combined market capitalization of 9 of the country’s top-10 companies has decreased by Rs 4.74 lakh crore. Among these, Reliance Industries has suffered the most loss last week. Its market cap has decreased by ? 1.88 lakh crore to 18.76 lakh crore. At the same time, the market cap of HDFC Bank has come down by ? 72 thousand crore to 12.64 lakh crore. Bharti Airtel’s market cap has decreased by ? 53 thousand crore to 9.34 lakh crore. Apart from this, the market value of ICICI Bank, LIC, HUL, ITC, TCS and SBI has also decreased. However, only Infosys’ market value has increased. Infosys’ market cap has increased by ? 4,629 crore to ? 7.96 lakh crore. Sensex fell by 4.53% last week
In the entire last trading week, Sensex had gained 4.53% i.e. 3,883 points. On the last trading day of the week, on October 4, amid fears of war between Iran and Israel, the Sensex closed at 81,688, down 808 points (0.98%). Nifty also fell 200 points (0.93%), closing at 25,049. 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 be helped in choosing 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 many 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, then the market cap will also increase and if the share price decreases, then the market cap will also decrease.
