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Due to weakness in the stock market last week, the combined market capitalization of 8 out of the top 10 most valuable companies decreased by about Rs 79129 crore. Bajaj Finance and ICICI Bank suffered the biggest losses, while Reliance Industries and L&T were the only companies whose value increased. Due to the fall in Sensex and profit booking, the attitude of investors remains cautious at present.
New Delhi. The impact of the weakness in the domestic stock market last week is clearly visible on the biggest companies of the country. The combined market capitalization of 8 of the top 10 most valuable companies declined by Rs 79129.21 crore. Investors especially kept an eye on finance and banking stocks, where maximum losses were seen. BSE Sensex fell 444.71 points or 0.51 percent in the week’s trading. Due to uncertainty in the market, global cues and profit booking, big stocks remained under pressure, which had a direct impact on the market cap of companies.
Bajaj Finance and ICICI Bank suffered the biggest loss in this decline. The market capitalization of Bajaj Finance declined by Rs 19289.7 crore to Rs 633106.69 crore. Whereas the value of ICICI Bank decreased by Rs 18516.31 crore to Rs 976668.15 crore. According to experts, profit booking was seen after the recent rise in financial stocks, which increased the pressure on these big stocks.
The value of these big companies also decreased
Last week, a decline was recorded in the market value of HDFC Bank, Bharti Airtel, Tata Consultancy Services (TCS), State Bank of India, Infosys, Bajaj Finance and Life Insurance Corporation of India (LIC). There was also weakness in IT and telecom stocks, as signals related to the global tech sector appeared weak and investors appeared cautious.
Reliance and L&T took the lead
While most of the big companies remained under pressure, Reliance Industries and Larsen and Toubro showed strength in the market. The market capitalization of Reliance Industries increased by Rs 20434.03 crore to Rs 2105652.74 crore. An increase of Rs 4910.82 crore was also recorded in the market cap of L&T. Reliance Industries once again remains the most valuable company of the country.
What signals for investors
Market experts say that this decline in the market cap of top companies could be the result of short-term pressure. Such fluctuations also create opportunities for long-term investors in companies with strong fundamentals. However, the direction of the market in the near future will depend on global signals and domestic economic data.
