The combined market capitalisation (M-Cap) of six of the top 10 most-valued firms on the Indian stock market recorded a more than ₹3 trillion drop last week, dragged down by bearish trends and IT heavyweights like Tata Consultancy Services (TCS), Infosys, and other non-IT firms like Reliance Industries, HDFC Bank, etc, according to a recent PTI report.
Mint reported earlier, after Friday’s market session, that the key benchmark index, Nifty 50, closed 1.30% lower at 25,471.10 points, compared to 25,807.20 points at the previous stock market close.
Along with Nifty, the BSE Sensex also closed 1.25% lower at 82,626.76 points, compared to 83,674.92 points at the previous market session, according to the exchange data.
Stock market outlook next week
Analysts at Bajaj Broking said that the Indian benchmark indices witnessed a board-based selling pressure, pulling the Nifty 50 below the 25,500 mark as the markets remained volatile through the trading session amid weak global cues.
The stock market experts suggested that the Nifty 50 will have a key support level at 25,000 points, and a move above 25,750 points will be the only trigger to signal a pause in the current downtrend.
“Index on the weekly chart formed a bearish candle which remained contained inside the previous week price range signalling consolidation amid stock-specific action. Going ahead, immediate bias remains down below Friday’s gap-down area of 25750. A follow-through weakness will open further downside towards 25,200 and 25,000 levels in the coming weeks. Key support is placed at 25,000 being the confluence of the 52-week EMA and the 80% retracement of the recent up move. On the higher side only a move above 25,750 will signal a pause in current decline. While key resistance is placed at last week high of 26,000,” said the analysts in a note.
Which stocks lost M-Cap last week?
According to the agency report, TCS, Infosys, HDFC Bank, Reliance Industries, Life Insurance Corporation of India (LIC), and Bharti Airtel were the heavyweights which recorded market cap erosion.
The data showed that TCS’s M-Cap dropped by ₹90,198.92 crore to ₹9.74 trillion, while Infosys’ market cap dropped by ₹70,780.23 crore to ₹5.55 trillion, as per last week’s trading close.
Other companies like HDFC Bank’s M-Cap dropped by ₹54,627.71 crore to ₹13.93 trillion, Reliance Industries’ market cap dropped by ₹41,883 crore to ₹19.21 trillion as of last week.
LIC’s market capitalisation (M-Cap) dropped by ₹23,971.74 crore to ₹5.46 trillion, while Bharti Airtel’s M-Cap dropped by ₹19,244.61 crore to ₹11.43 trillion, according to the agency report.
Despite the market cap drop, Reliance Industries still remains as the most valued company on the Indian stock market, followed by others like HDFC Bank, Bharti Airtel, State Bank of India, ICICI Bank, Tata Consultancy Services, Bajaj Finance, Larsen & Toubro, Infosys, and Life Insurance Corporation of India.
Which stocks were market-cap gainers?
Market Cap of State Bank of India (SBI) surged by ₹1.22 trillion to ₹11.06 trillion as of Friday’s stock market session, while other companies such as Bajaj Finance witnessed an M-Cap rise of ₹26,414.44 crore to ₹6.37 trillion.
According to the agency report, Larsen & Toubro’s M-Cap rose by ₹14,483.9 crore to ₹5.74 trillion, and ICICI Bank’s market cap increased by ₹5,719.95 crore to ₹10.11 trillion as of last week.
Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
