HDFC Market Value Drops ₹37,025 Crore: Top-10 Companies Lose ₹96,606 Crore Amid Sensex Gains
Market Valuation Update: Top 10 Companies Witness Mixed Trends
The market valuation of India’s top 10 companies revealed a decline in four firms during last week’s trading, with a cumulative loss of ₹96,606 crore. Among the top losers were private banking giants HDFC Bank and ICICI Bank.
HDFC and ICICI Bank Lead the Decline
HDFC Bank’s market capitalization dropped by ₹37,025 crore, bringing its valuation to ₹13.38 lakh crore. Similarly, ICICI Bank witnessed a loss of ₹29,325 crore, reducing its valuation to ₹8.93 lakh crore.
LIC Gains ₹13,282 Crore in Market Value
In contrast, Life Insurance Corporation of India (LIC) saw a positive movement, with its market value increasing by ₹13,282 crore, reaching ₹5.75 lakh crore. Additionally, companies like Infosys, ITC, and Airtel recorded gains in their valuations.
Stock Market Performance Last Week
The stock market exhibited mixed trends during the week. On January 3, the Sensex closed 720 points lower at 79,223, while the Nifty dropped 183 points to settle at 24,004. Despite this, the Sensex gained 524 points over the week.
Out of the 30 Sensex stocks, 20 declined while 10 advanced. Similarly, in the Nifty 50 index, 32 stocks fell, and 18 rose.
Sectoral Indices Performance
The NSE sectoral indices showed varied performances. The IT sector recorded the highest decline of 1.41%. Banking, pharma, healthcare, and financial services sectors also ended with over 1% losses. However, the Nifty Oil & Gas and Media sectors gained 1.26% and 1.70%, respectively.
Understanding Market Capitalization
Market capitalization (market cap) represents the total value of a company’s outstanding shares. It is calculated as:
Market Cap = (Number of Outstanding Shares) x (Share Price)
Investors use market cap to classify companies into categories such as large-cap, mid-cap, and small-cap, helping them align their investments with their risk profiles.
How Market Cap Works
Market cap reflects a company’s perceived value in the public market. Larger market caps often indicate more stable and established companies. Share prices fluctuate based on demand and supply, directly affecting market cap.
Factors Influencing Market Cap Fluctuations
Market cap changes based on the share price. If the share price rises, the market cap increases; if the price falls, the market cap decreases. This dynamic helps investors gauge a company’s market value over time.
