Noel Tata faces huge loss as TCS’ value decreased by Rs…, Reliance and Bajaj Finance gain…

Market cap is used to categorise company stocks to help investors choose them based on their risk profile, such as large cap, mid cap and small cap companies.

New Delhi: The market cap of 8 out of the 10 largest companies in the country has dropped by Rs 1.66 lakh crore in the last week’s trading. Tata Consultancy Services (TCS), the country’s second-most valuable company, was the top loser during the period. According to the reports, the company’s market cap has fallen by Rs 53,186 crore to Rs 13.70 lakh crore. Apart from this, the value of Bharti Airtel, ICICI Bank, Hindustan Unilever (HUL), Infosys, ITC, HDFC Bank and State Bank of India (SBI) has fallen.

However, it is important to note that the market cap of the country’s largest company Reliance Industries in terms of market value has increased by Rs 14,547 crore to Rs 16.61 lakh crore. The value of Bajaj Finance, a company that recently joined the top-10, has increased by Rs 384 crore to Rs 5.20 lakh crore.

Last week, the Sensex fell by 628 points. On the last trading day, the Sensex closed at 75,311 with a fall of 424 points. Nifty also fell by 117 points and closed at 22,795.

Out of the 30 Sensex stocks, 22 fell and 8 rose. Out of the 50 Nifty stocks, 37 fell and 13 rose. The auto sector of the NSE sectoral index saw the maximum fall of 2.58 percent. For the week, the Sensex fell by a total of 628 points. Nifty fell by 133 points.

What is market capitalization?

Market capitalization (market cap) represents the total value of a company’s outstanding shares, meaning all shares currently held by its shareholders. It is determined by multiplying the company’s total number of issued shares by its stock price.

Market cap is used to categorise company stocks to help investors choose them based on their risk profile, such as large cap, mid cap and small cap companies.

Market cap = (number of shares outstanding) x (price of shares)

How does market cap work?

Whether a company’s stock will give profit or not is estimated by looking at several factors. One of these factors is 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 it is considered to be. Stock prices rise and fall according to demand and supply. Therefore, market cap is the public perceived value of that company.