Rs 2.2 Trillion Lost in Market Valuation; Reliance Industries Emerged as the Biggest Gainer among the Top 10 Companies

Last week with the barometer Sensex tanking more than 3 percent, nine of the top 10 firms lost a whopping Rs 219,920.71 lakh crore in their total market valuation.

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While nine of the top 10 most valued companies witnessed a combined erosion of Rs 2.2 trillion, Reliance Industries (RIL) was the only firm to post gains in its market valuation. Amidst the weak global cues, the BSE benchmark index Sensex has dropped by 1,786 points. The nine firms are- TCS, ICICI Bank, Infosys, HDFC Bank,SBI Bank,Hindustan Unilever Limited, Kotak Mahindra Bank, and Bajaj Finance.

Estimated Data of the Top 9 Firms Who lost in the Market Valuation

Barring Reliance Industries, whose market capitalization rose by Rs 2,092.01 crore to Rs 13,21,044.35 crore, the other nine firms among the top 10 saw depletion in their market worth. Tata Consultancy Services’ worth declined by Rs 81,506.34 crore to Rs 10,71,263.77 crore, HDFC Banks’ m-cap dipped by Rs 35,389.88 crore to Rs 4,57,518.73 crore. SBI Banks’ valuation eroded by Rs 8,166.02 crore to Rs 3,48,238.34 crore and the market value of Infosys tumbled by Rs 16,613.57 crore to Rs 5,33,487.07 crore. The valuation of Kotak Mahindra Bank declined by Rs 30,695.43 to Rs 3,53,081.63 crore and that of ICICI Bank dipped by Rs 18,098.57 crore to Rs 4,13,078.87 crore. Another heavyweight Hindustan Unilever Limited valuation diminished by Rs 11,536.32 crore to Rs 5,00,937.14 crore followed by Bajaj Finance whose m-cap fell by Rs 15,712.46 crore to Rs 3,15,653.33 crore.

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Ways in which The M-cap canhelp the Individual Investors

Based on the market capitalization, firms are also classified as large-caps, mid-caps, and small-caps. In comparison to the mid or small-cap companies, the large-cap companies are less risky. So, by sticking to only large-cap companies, an investor who is equity and whose main aim is the risk involved in investing can minimize the M-cap. On the other hand, an investor who can tolerate the risk can consider the mid-cap or small-cap companies. In return, the companies can provide higher returns than the large-cap companies. But with it, this step comes with higher risk as well.

“Biggest Single-Day Fall” – Sensex Tumbled by 3.46 Percent

Last week, the Sensex dropped by 3.46 percent or 1,786 points which on Friday is considered as the biggest single-day fall in nearly 10 months. While cracking below the psychological 15,000-mark, the NSE Nifty plunged over 568 points tracking the global selloffs triggered by a panic in bond markets overseas.

TPT Policy Advocacy & Recommendations

  • The investors must bring in some tactical plans so that the market capitalization can be fully used to revive the losses of the company. They must also put up some new methods so that the companies can increase the market cap by introducing new shares.
  • How the Sensex has dropped to huge scale results in a rupee depreciation as a weak rupee could also negatively impact the FII flows into the Indian markets.
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Rs 2.2 Trillion Lost in Market Valuation; Reliance Industries Emerged as the Biggest Gainer among the Top 10 Companies
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Last week with the barometer Sensex tanking more than 3 percent, nine of the top 10 firms lost a whopping Rs 219,920.71 lakh crore in their total market valuation.
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THE POLICY TIMES
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