In terms of market valuation, the valuation of 4 of the top 10 companies of the country has decreased by Rs 96,606 crore in last week’s trading. During this period, the country’s largest private sector bank HDFC and ICICI Bank were the top losers. The market cap of HDFC Bank has come down by Rs 37,025 crore to Rs 13.38 lakh crore. At the same time, the value of ICICI Bank has come down by Rs 29,325 crore to Rs 8.93 lakh crore. The market value of LIC increased by Rs 13,282.49 crore, while after last week’s trading, the market value of Life Insurance Corporation of India i.e. LIC has increased by Rs 13,282 crore to Rs 5.75 lakh crore. Apart from this, the valuation of Infosys, ITC, Airtel has also increased. Last week, the stock market was bullish. On the last trading day of the week i.e. January 3, the Sensex closed at 79,223 with a decline of 720 points. Nifty also fell by 183 points, it closed at 24,004. Out of 30 Sensex stocks, 20 fell and 10 rose. Out of 50 Nifty stocks, 32 fell and 18 rose. Sensex rose 524 points in last week’s trading. Among the NSE sectoral indices, the IT sector closed with the highest decline of 1.41%. At the same time, banking, pharma, healthcare and financial services closed with a decline of more than 1%. Whereas, Nifty Oil and Gas rose by 1.26% and the media sector rose by 1.70%. 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 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.
