FinanceStock Market

TCS Market Value Drops by ₹62,538.64 Crore in a Week: Among Top 10 Companies, 6 Witness a Decrease, Airtel Tops Gainers

In the latest trading week, India’s top 10 companies witnessed a collective decrease in market capitalization by ₹1.40 trillion. Tata Consultancy Services (TCS) suffered the most significant setback, with its market cap plummeting by ₹13.85 lakh crore, reaching ₹62.54 trillion. 

Similarly, Infosys and ICICI Bank also experienced declines, with their market caps decreasing by ₹30.49 trillion and ₹26.42 trillion, respectively.

During this period, only four companies in the top 10 showed positive growth, with Bharti Airtel leading the pack as the top gainer. Within a week, the telecom giant saw its market cap surge by ₹37.80 trillion, reaching a total of ₹7.31 lakh crore. 

Alongside Airtel, HDFC Bank, Reliance Industries, and L&T also observed increases in their market values.

Friday Market Closure: BSE and NSE End Week with Significant Surge

The trading day last Friday, April 19th, saw an abrupt halt in the stock market’s activities. Both the BSE Sensex and NSE Nifty witnessed remarkable gains before closing. The Sensex soared by 599.34 points to settle at 73,088.33, while the Nifty surged by 151.15 points, ending at 22,147. After a dip of nearly 700 points earlier in the day, this impressive recovery marked a notable turnaround in the market.

Among the 30 shares in the Sensex, 22 experienced gains, with only 8 witnessing declines. Notably, shares of PSU banks, private banks, and financial services exhibited the most significant upsurge during Friday’s trading session.

Understanding Market Capitalization

Market capitalization, commonly referred to as market cap, represents the total value of all outstanding shares of a company, meaning the combined value of all shares currently held by shareholders. It is calculated by multiplying the total number of outstanding shares by the current market price per share.

Market cap serves as a crucial metric for categorizing companies based on their size and risk profiles, aiding investors in making informed decisions. Companies are typically classified into categories such as large-cap, mid-cap, and small-cap based on their market capitalization.

The formula to calculate market capitalization is:

Market Cap = (Total Number of Outstanding Shares) x (Price per Share)

How Does Market Capitalization Work?

Market capitalization, or market cap, is a crucial metric used to assess the size and valuation of a company. It is calculated by multiplying the total number of shares outstanding by the current market price per share.

Investors often rely on market capitalization to gauge the relative size of a company. A higher market cap generally indicates a larger company, while a lower market cap suggests a smaller one. 

Market cap fluctuates based on supply and demand dynamics, with share prices rising and falling accordingly. Therefore, market capitalization represents the public’s perception of a company’s value, influenced by factors such as market trends, performance, and investor sentiment.

How Market Capitalization Fluctuates

Market capitalization is determined by multiplying the total number of outstanding shares of a company by the current market price per share. 

This means that if the share price increases, the market cap will also increase, and if the share price decreases, the market cap will decrease accordingly.

Akash Shrivastav

My name is Akash Shrivastav, and I am a Blogger. I have 8 years of experience in blogging for Finance, Business, Investment, Stock Market, Cryptocurreny and more. Through my writing, I aim to provide readers with insightful and informative content.