In terms of market capitalization, the value of 4 of the country’s top-10 companies has increased by Rs 1 lakh crore in the last week. Reliance Industries was the gainer during this period. The company’s market cap has increased by Rs 30,786 crore to Rs 19.53 lakh crore. The value of HDFC Bank has increased by ? 26,668 crore, Bajaj Finance by ? 12,322 crore and ICICI Bank by ? 9,790 crore. Meanwhile, the value of Tata Consultancy Services (TCS) has come down by Rs 28,510 crore to Rs 12.24 lakh crore. Last week, the market was bullish. After the RBI’s monetary policy committee cut interest rates, the stock market was bullish today i.e. on June 6. The Sensex closed at 82,188 with a gain of 746 points. At the same time, the Nifty also gained 252 points. It closed at 25,003. In today’s trade, banking, finance, auto and metal shares saw a big gain. Shriram Finance’s share closed up by 5.46% and Bajaj Finance’s share closed up by 4.90%. JSW Steel’s share rose by 3.56%. What is market capitalization? Market cap is the value of any company’s total outstanding shares, that is, all the shares that are currently held by its shareholders. Its calculation is done by multiplying the total number of issued shares of the company with their price. Understand it with an example… Suppose… People have bought 1 crore shares of company ‘A’ in the market. If the price of one share is Rs 20, then the market value of the company will be 1 crore x 20, that is, Rs 20 crore. The market value of companies increases or decreases due to the increase or decrease in share prices. There are many other reasons for this… How does market value increase? How does market value decrease? How does market cap work?
