Last week's stock market weakness led to a decline of ₹1.35 lakh crore in the market capitalization of 7 out of India's top 10 companies. TCS suffered the most, while Hindustan Unilever benefited.
Market Cap: Last week, the stock market's weakness resulted in a significant drop of ₹1.35 lakh crore in the Market Capitalization (MCap) of 7 out of the top 10 companies in the country. TCS alone suffered the most, with a decline of over ₹47,000 crore. On the other hand, some companies like Hindustan Unilever and Reliance Industries also benefited.
Impact of Market Decline
The past trading week witnessed weakness in the Indian stock market. The Bombay Stock Exchange (BSE) benchmark index fell by 863.18 points, or approximately 1.05%. This decline directly impacted the Market Cap of the country's major companies. Out of the top 10 companies, 7 saw their values decrease by a total of over ₹1.35 lakh crore.
TCS Suffers the Biggest Loss
Tata Consultancy Services (TCS), the leading tech company of the Tata Group, was the biggest victim of this downturn. The company's market value decreased by ₹47,487.4 crore. While the company's MCap was previously around ₹11.34 lakh crore, it has now decreased to ₹10,86,547.86 crore. This decline in TCS may be attributed to factors such as the slowdown in the global IT sector, macroeconomic uncertainty, and delays in deals.
Bharti Airtel Also Sees a Significant Decline
Telecom sector giant Bharti Airtel also failed to meet investors' expectations this week. The company's Market Cap saw a decline of ₹29,936.06 crore, and its value now stands at ₹10,74,903.87 crore.
The pressure on Airtel's stock could potentially be due to increasing competition in the sector and the need for investment.
Sharp Decline in Bajaj Finance's Value
Bajaj Finance's Market Capitalization decreased by ₹22,806.44 crore to ₹5,44,962.09 crore. This decline is believed to be linked to risks in retail lending within the financial sector and uncertainty in interest rates.
Infosys Also Shows Weak Performance
Another major IT company, Infosys, saw its market value decrease by ₹18,694.23 crore, bringing it down to ₹6,10,927.33 crore. The pressure on Infosys's stocks, like that of TCS, has been attributed to the industry-wide slowdown and cuts in client spending.
SBI and ICICI Bank Also Suffer Losses
The country's largest public sector bank, State Bank of India (SBI), saw its value decrease by ₹11,584.43 crore, bringing it down to ₹7,32,864.88 crore. Meanwhile, private sector giant ICICI Bank's Mcap decreased by ₹3,608 crore to ₹10,50,215.14 crore. This decline in the banking sector may be linked to interest rate volatility and potential NPA concerns.
LIC's Decline Was Marginal
The market value of government-owned insurance company Life Insurance Corporation (LIC) decreased by ₹1,233.37 crore, bringing it down to ₹5,59,509.30 crore. The impact on LIC was relatively less, but the effects of competition in the insurance sector and policy changes remain on the market.
Total Loss: Over ₹1.35 Lakh Crore
The combined Market Capitalization of these seven companies saw a decline of ₹1,35,349.93 crore. This is a major setback for investors and reflects market volatility.
Who Benefited?
While seven companies suffered losses, there were also three major companies that benefited.
Hindustan Unilever Sees the Biggest Gain
Hindustan Unilever's market value increased by ₹32,013.18 crore, and its Mcap has now reached ₹5,99,462.97 crore. Stable demand in the FMCG sector and signs of rural recovery are considered the reasons for this.
HDFC Bank Also Sees a Surge
HDFC Bank's value increased by ₹5,946.67 crore to ₹15,44,025.62 crore. Investor confidence remained b due to the bank's recent b results and deposit growth.
Reliance Industries Becomes the Most Valuable Company
Reliance Industries' Mcap increased by ₹2,029.87 crore to ₹18,85,885.39 crore. Reliance has maintained stability in the market due to its diversified business model, spanning from oil to telecom and retail.
Market Cap Ranking of Top 10 Companies (Current Status)
- Reliance Industries – ₹18,85,885.39 crore
- HDFC Bank – ₹15,44,025.62 crore
- TCS – ₹10,86,547.86 crore
- Bharti Airtel – ₹10,74,903.87 crore
- ICICI Bank – ₹10,50,215.14 crore
- State Bank of India – ₹7,32,864.88 crore
- Infosys – ₹6,10,927.33 crore
- Hindustan Unilever – ₹5,99,462.97 crore
- LIC – ₹5,59,509.30 crore
- Bajaj Finance – ₹5,44,962.09 crore
