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- Market Value Of 4 Of The Top 10 Companies Decreased By ₹1.25 Lakh Crore, Reliance Biggest Laggard
Mumbai9 minutes ago
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In last week’s trading, the combined market capitalization of 4 out of the top 10 companies of the country has decreased by Rs 1.25 lakh crore. Among these, Reliance suffered the biggest loss last week. Its market cap declined by ₹74,969 crore to ₹16.85 lakh crore.
Whereas the market cap of LIC decreased by ₹ 21,251 thousand crore to 5.19 lakh crore. SBI’s market cap has declined by ₹17,626 crore to Rs 6.64 lakh crore.
The market cap of ICICI Bank decreased by ₹ 11,549 thousand crore to 8.53 lakh crore. Apart from this, the market value of Infosys, HDFC Bank, Bharti Airtel, TCS, HUL and ITC has increased.
What is market capitalization?
Market cap is the value of the total outstanding shares of any company, i.e. all those shares which are currently held by its shareholders. It is calculated by multiplying the total number of issued shares of the company by the stock price.
Market cap is used to categorize shares of companies to help investors select them according to their risk profile. Like large cap, mid cap and small cap companies.
Market Cap = (number of shares outstanding) x (price of shares)
How does market cap work?
Whether a company’s shares will yield 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 the market cap.
The higher the market cap of the company, the better the company is considered. Stock prices rise and fall according to demand and supply. Therefore, market cap is the publicly perceived value of that company.
How does market cap fluctuate?
It is clear from the formula of market cap that it is calculated by multiplying the total number of issued shares of the company by the stock price. That means 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.
