4 out of top-10 companies face ₹87,960 crore valuation crunch:Airtel loses ₹28,052 crore in market cap

Last week, the Indian stock market witnessed a decline. During this period, 4 out of the country’s 10 most valuable companies saw their market cap collectively decrease by ₹87,960 crore. During this time, telecom sector major Bharti Airtel’s market valuation saw the biggest drop of ₹28,052.96 crore. Its valuation declined to ₹12.15 lakh crore. Apart from Airtel, the market cap of Tata Consultancy Services, State Bank of India, and Hindustan Unilever also decreased. Meanwhile, the market value of 6 companies – LIC, Reliance Industries, Larsen Toubro, Bajaj Finance, ICICI Bank, and HDFC Bank – increased. Last week, Sensex closed down 468.42 points (0.60%) and NSE Nifty fell 114 points (0.46%). What is Market Capitalisation? Market cap is the value of all the total outstanding shares of any company, meaning 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. 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.