7-of-top-10-companies-lose-₹2.05-lakh-crore-value:tcs-top-loser,-value-falls-by-₹66,699-crore;-reliance’s-market-cap-also-declined

In terms of market cap, the value of 7 out of the country’s 10 largest companies decreased by ₹2.05 lakh crore in last week’s trading. During this period, Tata Consultancy Services, i.e., TCS, saw the highest decline in value. TCS’s market cap decreased by ₹66,699 crore to ₹8.67 lakh crore. Reliance Industries’ market value decreased by ₹50,670 crore to ₹17.96 lakh crore. HDFC Bank’s market value increased by ₹23,090 crore to ₹12.08 lakh crore. Meanwhile, the values of LIC, Bharti Airtel, ICICI Bank, and Larsen Toubro also declined. Additionally, the values of Hindustan Unilever, State Bank of India, and Bajaj Finance increased. Last week, Sensex fell by 1830 points Last week, Sensex fell by 1,830 (2.33%) and Nifty by 455 (1.87%) points. On the last trading day of the past week, i.e., Friday, April 24, Sensex closed at 76,664 with a fall of 1000 points (1.29%). Nifty also dropped 275 points (1.14%) to reach the level of 23,898. What is Market Capitalization? Market cap is the value of all the total outstanding shares of any company, i.e., all the shares that are currently held by its shareholders. Its calculation is done by multiplying the total number of issued shares of the company by their price. Understand this with an example… Let’s assume… Company ‘A’ has 1 crore shares that people have purchased in the market. If the price of one share is 20 rupees, then the company’s market value will be 1 crore x 20, which means 200 crore rupees. The market value of companies increases or decreases due to the rise or fall in share prices. There are several other reasons for this… What is the impact of market cap fluctuations on the company and investors? Impact on Company: A large market cap helps the company raise funds from the market, take loans, or acquire other companies. On the other hand, a small or low market cap reduces the company’s ability to make financial decisions. Impact on Investors: When market cap increases, investors benefit directly because the price of their shares goes up. On the other hand, a decline can lead to losses, which may prompt investors to decide to sell their shares. Example: If TCS’s market cap increases to ₹12.43 lakh crore, investors’ wealth will grow, and the company may get more capital for future investments. However, if the market cap falls, it can result in losses.