Mcap of 8 of 10 most valued firms erodes by Rs 2.08 trn; RIL, TCS suffer most. Market-cap of 8 out of top-10 companies decreased by ₹ 2.08 lakh crore: Reliance Industries was the top loser, its value decreased by ₹ 67 thousand crore to 19.34 lakh crore.

In last week’s trading, the combined market capitalization of 8 out of the top 10 companies of the country has decreased by Rs 2.08 lakh crore. Among these, Reliance Industries has suffered the most loss. Its market cap has declined by ₹67,792 crore to ₹19.34 lakh crore.

Whereas the market cap of TCS has declined by ₹65,577 crore to ₹13.27 lakh crore. Apart from this, the market value of LIC, Bharti Airtel, HUL, Infosys, ICICI Bank and ITC has decreased. Whereas, the market value of HDFC Bank and SBI has increased.

HDFC Bank’s market cap increased by ₹10,954 crore
HDFC Bank’s market cap has increased by ₹10,954 crore to ₹11.64 lakh crore. Whereas SBI’s market cap has increased by ₹ 1,338 crore to ₹ 7.40 lakh crore.

What is market capitalization?
Market cap is the value of the total outstanding shares of any company, i.e. all those shares which are currently held by its shareholders. It is calculated by multiplying the total number of issued shares of the company by the stock price. Market cap is used to categorize shares of companies to help investors select them according to their risk profile. Like 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 shares will yield profit or not is estimated by looking at many factors. One of these factors is market cap. Investors can find out how big a company is by looking at the market cap. The higher the market cap of the company, the better the company is considered. Stock prices rise and fall according to demand and supply. Therefore, market cap is the publicly perceived value of that company.

How does market cap fluctuate?
It is clear from the market cap formula that it is calculated by multiplying the total number of issued shares of the company by the stock price. That means if the share price increases then the market cap will also increase and if the share price decreases then the market cap will also decrease.