In terms of market valuation, the valuation of 6 of the top 10 companies of the country has increased by Rs 86,848 crore after last week’s trading. During this period, the country’s largest private sector bank HDFC and the largest company Reliance Industries were the top gainers. The market cap of HDFC Bank has increased by Rs 20,236 crore to Rs 13.75 lakh crore. At the same time, the market cap of Reliance Industries has increased by Rs 20,231 crore to Rs 16.52 lakh crore. SBI’s market value decreased by Rs 11,557 crore, while the market value of the largest government bank State Bank of India (SBI) has come down by Rs 11,557 crore to Rs 7.14 lakh crore after last week’s trading. At the same time, the market cap of LIC has come down by Rs 8,412 crore to Rs 5.61 lakh crore. Apart from these two, the value of Infosys and Tata Consultancy Services i.e. TCS has also fallen last week. Sensex rose 226 points last week On the last trading day of last week i.e. Friday, 27 December, the market closed with a gain of 226 points at 78,699. Nifty also rose by 63 points, it closed at 23,813. Out of 30 Sensex stocks, 20 rose and 10 fell. Out of 50 Nifty stocks, 30 rose and 20 fell. Among the NSE sectoral indices, the pharma sector closed with the highest gain of 1.30%. Last week, Sensex rose 657 points (0.84%) and Nifty rose 225 (0.95%). What is market capitalization? Market cap is the value of the total outstanding shares of any company i.e. 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 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 the company 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 formula of market cap that it is calculated by multiplying the total number of issued shares of the company with the price of the stock. That is, if the price of the share increases, the market cap will also increase and if the price of the share decreases, the market cap will also decrease.
