Market cap of India's top 7 companies down ₹2L crore
What's the story
The combined market capitalization of seven out of the top 10 most-valued companies in India has witnessed a major decline, eroding over ₹2 lakh crore last week. The fall was led by Tata Consultancy Services (TCS) and Reliance Industries, mirroring a bearish trend in the equity market. The BSE Sensex plummeted 1,829.33 points or 2.33%, while NSE Nifty fell by 455.6 points or 1.87%.
Market analysis
Geopolitical tensions and poor IT earnings impact market
Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, attributed the market downturn to heightened geopolitical tensions and poor earnings commentary from IT majors. He said global developments continue to drive market direction with uncertainty over the West Asia crisis and fears of supply disruptions keeping crude oil prices high.
Company impact
Major losses for TCS, Reliance Industries
TCS's market valuation took a major hit, falling by ₹66,699.44 crore to ₹8,67,364.12 crore. Reliance Industries also witnessed a massive dip in its valuation by ₹50,670.34 crore to ₹17,96,647.50 crore. Other companies that witnessed a fall include HDFC Bank (down by ₹23,090.05 crore), Life Insurance Corporation of India (down by ₹19,670.75 crore), Bharti Airtel (down by ₹19,406.59 crore), ICICI Bank (down by ₹14,663.27 crore), and Larsen & Toubro (down by ₹11,142.62 crore).
Market exceptions
Few companies see gains amid market decline
Despite the overall market downturn, some companies managed to buck the trend. Hindustan Unilever's valuation rose by ₹20,652.91 crore to ₹5,47,219.80 crore, while State Bank of India's market capitalization climbed by ₹19,522.76 crore to ₹10,16,752.53 crore. Bajaj Finance also saw a slight increase in its valuation by ₹8,253.64 crore taking it up to ₹5,73,690.81 crore.