In the last week’s trading, the combined market capitalization of 9 of the top 10 companies of the country has increased by Rs 1.85 lakh crore. Among them, Reliance Industries was the biggest gainer. Its market cap has increased by ₹ 61 thousand crore to 20.03 lakh crore. At the same time, the market cap of HDFC Bank has increased by ₹ 38 thousand crore to ₹ 11.53 lakh crore. Apart from this, the market value of LIC, Bharti Airtel, HUL, Infosys, SBI, ICICI Bank and TCS has increased. Whereas, the market cap of ITC has declined. Out of the top 10 companies, the market value of 9 increased and 1 decreased Source: BSE, Note: The figures are based on May 21 and May 24. Top 10 companies of the country in terms of market cap Source: BSE, Note: The figures are based on May 21 and May 24. On the last trading day of the week, Friday (May 24), the stock market reached an all-time high. The Sensex had made a high of 75,636. Earlier on May 23, the Sensex had made a high of 75,499. At the same time, the Nifty made a high of 23,026. Earlier on May 23, the Nifty also made a high of 22,993 on the previous day. However, the market closed with a slight decline after coming down from the upper level. The Sensex closed at 75,410 with a decline of 7 points. At the same time, the Nifty fell by 10 points, it closed at 22,957. Out of the 30 stocks of Sensex, 9 saw a rise and 21 saw a decline. What is market capitalization? Market cap is the value of the total outstanding shares of any company i.e. all the shares that are currently held by its shareholders. It is calculated by multiplying the total number of issued shares of the company by the price of the stock. 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 a 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 fluctuate? 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 price of the stock. That is, if the price of the share increases, the market cap will also increase and if the price of the share decreases, the market cap will also decrease.
