In last week’s trading, the combined market capitalization of 6 of the country’s top 10 companies increased by ? 1.18 lakh crore. Tata Consultancy Services (TCS) benefited the most last week. Its market cap increased by ? 53,692 crore to ? 12.47 lakh crore. Apart from TCS, the market cap of Reliance Industries, Infosys and SBI increased. Reliance’s market cap increased by ? 34,507 crore to ? 17.59 lakh crore. Infosys’ market cap increased by ? 24,919 crore to ? 6.14 lakh crore and HDFC Bank’s market cap increased by ? 2,907 crore to ? 14.61 lakh crore. SBI’s market cap increased by ?1,472 crores to ?7.12 lakh crores and ITC’s market cap increased by ?1,126 crores to ?5.35 lakh crores. On the other hand, the market value of Bharti Airtel, Hindustan Unilever, Bajaj Finance and ICICI Bank has decreased. Last week, the Sensex rose by 659 points. Last week, the Sensex rose by 659.33 points or 0.83%. Nifty also rose by 187.7 (0.78%) last week. On the last trading day of the week, Friday (April 23), the Sensex fell by 589 points or 0.74% to close at 79,212. Nifty also fell by 207 points or 0.86%; it closed at 24,039. 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 stock price. 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 also market cap. Investors can find out how big the company is by looking at the market cap. The higher the market cap of a company, the better the company is considered. 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 and 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 share price increases, then the market cap will also increase and if the share price decreases, then the market cap will also decrease.
