In last week’s trading, the combined market capitalization of 8 out of the country’s top 10 companies has increased by ₹3.28 lakh crore. Among these, TCS has made the most profit. Its market cap has increased by ₹80,828 crores to ₹14.08 lakh crores. The market cap of HUL has increased by ₹58,258 crores to ₹6.05 lakh crores. On the other hand, the market cap of Reliance Industries has increased by ₹54,024 crores to ₹19.88 lakh crores. Apart from this, the market value of Infosys, HDFC Bank, Bharti Airtel, ITC and ICICI Bank has increased. Whereas, the market value of SBI and LIC has decreased. LIC’s market cap decreased by ₹12,080 crores LIC’s market cap decreased by ₹12,080 crores to ₹6.28 lakh crore. On the other hand, the market cap of SBI decreased by ₹178 crores to ₹7.40 lakh crores. What is market capitalization? Market cap is the value of the total outstanding shares of any company, that is, all the shares that are currently held by its shareholders. It is calculated by multiplying the total number of issued shares of the company with the stock price. Market cap is used to categorize the shares of companies so that investors can choose them according to their risk profile. Such as large cap, mid cap and small cap companies. Market cap = (number of outstanding shares) x (price of shares) How does market cap work? Whether a company’s shares will give profit or not is estimated by looking at many factors. One of these factors is also market cap. Investors can find out how big the company is by looking at the market cap. The higher the market cap of a company, the better the company is considered. Stock prices rise and fall according to demand and supply. Therefore, market cap is the public perceived value of that company. How does market cap increase and decrease? It is clear from the formula of market cap that it is calculated by multiplying the total number of issued shares of the company with the stock price. That is, if the share price increases, the market cap will also increase and if the share price decreases, the market cap will also decrease.
