In terms of market capitalization, the value of 6 out of the top 10 companies of the country has increased by a combined Rs 1.07 lakh crore last week. State Bank of India (SBI) has been the top gainer during this period. After a week's trading, the market cap of the bank has increased by Rs 36,100 crore to Rs 7.33 lakh crore.
Apart from SBI, the market cap of ICICI Bank, Reliance Industries, ITC and Hindustan Unilever has increased. At the same time, Infosys remained the top loser during this period. The market cap of the company has decreased by Rs 38,054 crore to Rs 7.31 lakh crore.
Market rose 321 points last week
On Friday (November 1), the last trading day of the week, the stock market was opened for one-hour special time trading from 6:0 pm to 7:0 pm. Sensex closed at 79,724 with a gain of 335 points. At the same time, there was a jump of 99 points in Nifty and it closed at 24,304.
After trading, out of all 30 Sensex stocks, 26 were up, while 4 were down. At the same time, 42 out of 50 Nifty stocks saw a rise and only 8 saw a rise. After a week of trading, the market rose 321.83 points or 0.40%.
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 choose 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 company it is considered to be. 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.
Graphics Source: NavJivanIndia | VaskarAssets
