Market cap of 10 most valued firms plummet by over Rs 2.08 lakh crore; TCS, Infosys among top laggards

A significant downturn was seen in the combined market valuation last week. Eight out of the top 10 most valued firms, Reliance Industries, TCS, and Infosys declined by Rs 2,08,207.93 crore. Meanwhile, HDFC Bank and State Bank of India (SBI) emerged as the exceptions, showing gains amidst the broader market downturn.

The 30-share BSE Sensex shed 1,449 points or 1.92 percent over the week, before showing a slight recovery of 0.10 percent on Friday, settling at 73,961.31 and breaking a five-day losing streak.

Reliance Industries, a key player in the index, saw its market capitalisation plummet by Rs 67,792.23 crore to Rs 19,34,717.12 crore, while TCS experienced a decline of Rs 65,577.84 crore, bringing its valuation down to Rs 13,27,657.21 crore. Infosys also suffered a significant loss, with its market capitalization dropping by Rs 24,338.1 crore to Rs 5,83,860.28 crore.

Other laggards included ITC, Life Insurance Corporation (LIC), Hindustan Unilever Ltd (HUL), Bharti Airtel, and ICICI Bank, all experiencing substantial declines in market valuation. The market cap of LIC dropped by Rs 10,815.74 crore to Rs 6,40,532.52 crore, while HUL's valuation eroded by Rs 9,680.31 crore to Rs 5,47,149.32 crore. Bharti Airtel's market cap fell by Rs 9,503.31 crore to Rs 7,78,335.40 crore, and that of ICICI Bank dipped by Rs 8,078.11 crore to Rs 7,87,229.71 crore.

On the contrary, HDFC Bank witnessed an increase of Rs 10,954.49 crore, bringing its market capitalisation to Rs 11,64,083.85 crore, while SBI added Rs 1,338.7 crore to reach Rs 7,40,832.04 crore.

What is market cap?

Market capitalisation or 'market cap' is a measure used to indicate the total value of a publicly traded company. It is calculated by multiplying the current market price of a company's outstanding shares by the total number of outstanding shares.

Market capitalisation is important for investors and analysts as it provides a snapshot of a company's size and worth relative to other companies in the market. It is commonly used to classify companies into categories such as large-cap, mid-cap, and small-cap, based on their market capitalisation.

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