In terms of market capitalization, the combined value of 8 of the country’s 10 largest companies increased by Rs 1,55,603.45 crore last week. HDFC Bank and Tata Consultancy Services (TCS) were the biggest gainers during this period.
HDFC Bank’s market capitalization increased by Rs 40,392.91 crore to Rs 13,34,418.14 crore during the trading week. At the same time, the market capitalization of TCS increased by Rs 36,036.15 crore to Rs 15,36,149.51 crore.
Apart from this, the market capitalization of ICICI Bank, Infosys, Hindustan Unilever, ITC, Bharti Airtel and SBI also increased. On the other hand, the market capitalization of LIC and Reliance has declined.
Last week, Sensex rose by 1,536.8 points and Nifty by 374.55 points.
The 30-stock Bombay Stock Exchange (BSE) Sensex rose 1,536.8 points (1.98%) during the trading week. Meanwhile, the 50-share Nifty of the National Stock Exchange (NSE) rose 374.55 points or 1.59 per cent in a week.
Out of 30 Sensex stocks, 29 were up and 1 was down. Out of 50 Nifty stocks, 49 were up and 1 was down. Except for Nifty Media, all sectoral indices on the NSE closed with gains. IT and real estate indices rose the most.
What is market capitalization?
Market capitalization is the value of a company’s total outstanding shares, that is, all the shares currently owned by its shareholders. It is calculated by multiplying the company’s total number of issued shares by the stock price.
Market capitalization is used to categorize company stocks to help investors choose them based on their risk profile. Like large, mid and small cap companies.
Market capitalization = (number of shares outstanding) x (share price)
How does market capitalization work?
Whether or not a company’s stock will generate profits is estimated by looking at many factors. One of these factors is market capitalization. Investors can tell the size of a company by looking at the market capitalization.
The higher the market capitalization of the company, the better it is considered. Stock prices rise and fall based on supply and demand. Therefore, market capitalization is the publicly perceived value of that company.
How does market capitalization fluctuate?
It is clear from the market capitalization formula that it is calculated by multiplying the total number of issued shares of the company by the stock price. This means that if the stock price increases, the market capitalization will also increase and if the stock price decreases, the market capitalization will also decrease.