New Delhi. The domestic stock market showed tremendous recovery last week and the Sensex jumped by more than 1300 points. After the pressure on the market in recent times and the selling by foreign investors, this surge came as a big relief for the investors. Due to this strength, the market cap of 8 out of the top 10 companies of the country collectively increased by Rs 2,05,185 crore.
Analysts say that improvement in global cues, soft stance of the US Fed, fall in crude oil prices, and better results of domestic companies kept the market sentiment strong throughout the week. Both Sensex and Nifty moved strongly throughout the week and closed in the green on Friday also.
Airtel and Reliance are the biggest winners
Bharti Airtel was the biggest gainer of this week. The market cap of the company increased by Rs 55,652.54 crore to reach Rs 11,96,700.84 crore. According to analysts, the expectation of increase in Airtel’s ARPU, rapid expansion of 5G network and strengthening of retail customer base have increased the confidence among investors. The market cap of Reliance Industries also increased by Rs 54,941.84 crore to Rs 20,55,379.61 crore. Activities of Jio Financial Services, improvement in petrochemical segment and growth in retail business gave strength to the stock.
Tremendous boom in IT and banking sector also
Good growth was also seen in IT sector giants Tata Consultancy Services (TCS) and Infosys. The market cap of TCS increased by Rs 40,757.75 crore to Rs 11,23,416.17 crore. Infosys also recorded an increase of Rs 10,448.32 crore. The reasons for this are said to be increasing orders from American tech companies, strength in deal pipeline and stability in IT spending.
The banking sector was also not left behind. The market cap of ICICI Bank increased by Rs 20,834.35 crore to reach Rs 9,80,374.43 crore. HDFC Bank also added Rs 9,149.13 crore and its total value became Rs 15,20,524.34 crore. State Bank of India (SBI) also increased by Rs 10,522.9 crore. Investors believe that the balance sheets of these banks are strong and credit growth may improve further in the coming months.
Loss to LIC and Bajaj Finance
While eight companies remained profitable, two giants saw a decline in market value. The market cap of Bajaj Finance declined by Rs 30,147.94 crore to Rs 6,33,573.38 crore. Recent NBFC rules, concerns about loan book and profit booking were the reasons for this. The market capitalization of Life Insurance Corporation of India (LIC) declined by Rs 9,266.12 crore to Rs 5,75,100.42 crore. Analysts say that this decline occurred due to pressure in PSU stocks and profit-taking by investors.
Latest ranking of top 10 companies
Reliance Industries remains at first position. This was followed by HDFC Bank, Bharti Airtel, Tata Consultancy Services, ICICI Bank, State Bank of India, Bajaj Finance, Infosys, Life Insurance Corporation of India and Hindustan Unilever. Analysts say that next week the focus of the market will be on global signals, oil prices, dollar index and domestic macro data. The direction of these signals will decide whether the bullish trend will continue or not.
