8 of top 10 firms lose ₹79,130 crore in market:Reliance’s market cap increases by ₹20,434 cr; construction company LT’s valuation reaches ₹5.60 lakh cr

In terms of market valuation, 8 of the country’s 10 largest companies saw a combined loss of ₹79,130 crore in last week’s trading. During this period, Bajaj Finance was the top loser, with its valuation falling by ₹19,290 crore to ₹6.33 lakh crore. Additionally, the biggest declines were in ICICI Bank and Airtel, which lost ₹18,516 crore and ₹13,885 crore respectively. Their valuations are now ₹9.77 lakh crore and ₹11.88 lakh crore. Airtel’s value fell by ₹35,239 crore Meanwhile, the country’s largest company Reliance Industries’ value increased by ₹20,434 crore to reach ₹21.06 lakh crore. Also, Larsen Toubro (LT), one of India’s largest and oldest engineering, construction and infrastructure companies, saw its valuation rise by ₹4,911 crore to reach ₹5.60 lakh crore. Stock market fell 444 points last week On Friday, December 12, the last trading day of the week, Sensex closed 449 points higher at 85,268 level. Nifty also rose 148 points, closing at 26,046 level. However, it saw a decline of 444 points in trading throughout the week. Out of 30 Sensex stocks, 23 showed gains and 7 declined. Tata Steel, Zomato and UltraTech Cement saw gains of up to 3%. ITC, Sun Pharma and Hindustan Unilever fell up to 2%. Out of Nifty’s 50 stocks, 36 showed gains and 14 declined. Today the metal sector on NSE saw the highest gain of 2.63%. Auto, Financial Services, Realty and Banking sectors also witnessed gains. What is Market Capitalization? Market cap is the value of a company’s total outstanding shares, meaning all shares currently held by its shareholders. This is calculated by multiplying the total number of company’s issued shares by their price. Let’s understand this with an example… Let’s say… Company ‘A’ has 1 crore shares bought by people in the market. If one share costs ₹20, then the company’s market value will be 1 crore x 20, which equals ₹20 crore. Companies’ market value increases or decreases due to changes in share prices. There are several other reasons… How do market cap fluctuations affect companies and investors? Impact on Company: Large market cap helps companies raise funds from market, take loans or acquire other companies. Whereas, small or low market cap reduces company’s ability to make financial decisions. Impact on Investors: Increase in market cap directly benefits investors because their share prices increase. However, a decline can cause losses, which may lead investors to decide to sell shares. Example: If TCS’s market cap increases from ₹12.43 lakh crore, investors’ wealth will increase, and the company may get more capital for future investments. But if the market cap falls, it could result in losses. ​