Winning Bizness Desk
Mumbai. In the previous trading week, the combined market capitalization (market cap) of nine out of India's top ten companies saw an impressive increase of ₹2.01 lakh crore. Bharti Airtel emerged as the biggest gainer, witnessing its market value soar by ₹54,282 crore, taking its total market cap to ₹9.30 lakh crore. ICICI Bank followed with a gain of ₹29,662 crore, boosting its market cap to ₹8.80 lakh crore. Tata Consultancy Services (TCS) also saw significant growth, with its market cap rising by ₹23,427 crore to reach ₹16.36 lakh crore. Other companies that contributed to the overall growth include Hindustan Unilever (HUL), HDFC Bank, Infosys, ITC, Reliance Industries, and State Bank of India (SBI). Meanwhile, Life Insurance Corporation (LIC) was the only company in the top 10 to see a decline, with its market cap decreasing by ₹3,004 crore, bringing it down to ₹6.54 lakh crore.
Sensex Gains 2.10% for the Week
The benchmark index Sensex recorded a 2.10% increase, equivalent to 1,707 points, over the past week. However, on Friday, September 13, the market witnessed a slight decline. The Sensex closed 71 points lower at 82,890, while the Nifty slipped 32 points, ending at 25,356.
Understanding Market Capitalization
Market capitalization, or market cap, represents the total value of a company's outstanding shares. It is calculated by multiplying the number of issued shares by the stock's current price. Investors use market cap as a metric to classify companies into large-cap, mid-cap, or small-cap categories, helping them make decisions based on their risk profile.
Formula for market cap:
Market Cap = (Number of Outstanding Shares) x (Price per Share)
How Market Cap Reflects a Company's Value
Market cap is a key indicator of a company's size and perceived value in the market. A higher market cap often signals a well-established company, with stock prices fluctuating according to market demand and supply. Consequently, as the stock price rises or falls, the market cap changes accordingly.
