Market capitalisation of 7 Out of Top-10 Valued Firms Surge ₹2.10 Lakh Crore; RIL, TCS Lead Gains
Market capitalisation : The Indian stock market witnessed an impressive rally last week, with the combined market capitalisation (Mcap) of seven out of the top 10 most valuable companies surging by an astounding ₹2,10,254.96 crore. This remarkable rise in market value was driven largely by gains from industry giants Reliance Industries (RIL) and Tata Consultancy Services (TCS), both of which saw substantial growth in their valuations. The rally in these stocks also contributed to a positive momentum in broader market indices, with the BSE Sensex and NSE Nifty both posting strong gains.
Performance of Key Companies:
Reliance Industries and TCS Lead the Surge
Reliance Industries, the most valuable company in India, saw its market capitalisation increase by ₹66,985.25 crore, reaching ₹16,90,328.70 crore. This was the largest gain among the top companies, with RIL’s surge attributed to strong performance across its core sectors, including petrochemicals, retail, and telecom. The company’s diversified business model continues to give it a significant edge in the market, cementing its position as the top contender in India’s corporate hierarchy.
Similarly, Tata Consultancy Services (TCS), India’s largest IT services exporter, reclaimed its spot as the second most valuable company by adding ₹46,094.44 crore to its market cap, which now stands at ₹13,06,599.95 crore. TCS’s robust growth has been driven by strong demand for its digital transformation services, cloud computing, and IT consulting solutions. The company’s focus on innovation and technology adoption has been instrumental in its sustained growth in recent years.
Banking and Telecom Stocks Also Witness Growth
State Bank of India (SBI), India’s largest public sector bank, saw its market capitalisation soar by ₹39,714.56 crore, bringing its total to ₹6,53,951.53 crore. This surge can be attributed to the improved performance in the banking sector, supported by strong loan growth and improved asset quality. SBI continues to be a dominant force in India’s banking landscape, benefiting from its expansive reach and solid financial fundamentals.
Telecom giant Bharti Airtel also saw a robust rise in its market cap, increasing by ₹35,276.3 crore to ₹9,30,269.97 crore. This gain reflects the growing demand for mobile data and the shift towards 4G and 5G services, which continue to drive growth in the telecom sector. Bharti Airtel’s consistent performance in subscriber acquisition and its leadership in the 4G network space are contributing to its strong market valuation.
Other Gainers: ITC, ICICI Bank, and HUL
ITC, the diversified FMCG major, added ₹11,425.77 crore to its market value, pushing it to ₹5,05,293.34 crore. The company’s growth is driven by its strong presence in the FMCG, hotels, and paper segments, along with its well-established brands in the tobacco sector.
ICICI Bank’s market cap increased by ₹7,939.13 crore, bringing it to ₹8,57,743.03 crore. As one of India’s leading private-sector banks, ICICI Bank has benefited from its strong financial performance, robust loan book, and improved asset quality.
Hindustan Unilever (HUL), the largest FMCG player in India, saw a more modest increase of ₹2,819.51 crore, raising its market valuation to ₹5,17,802.92 crore. HUL’s dominance in the consumer goods sector and its focus on premium products continue to bolster its market position.
Companies Facing Declines:
Despite the positive momentum in most of the top 10 companies, a few firms saw a dip in their market capitalisation. HDFC Bank’s market value dropped by ₹31,832.92 crore, taking its total valuation down to ₹12,92,578.39 crore. The decline comes amid concerns over the bank’s growth prospects in the short term and potential regulatory scrutiny.
Bajaj Finance also saw a decline in its market cap, falling by ₹8,535.74 crore to ₹5,20,981.25 crore. The company’s valuation was affected by concerns related to its non-performing asset (NPA) levels and slower-than-expected growth in the consumer finance space.
Infosys, another key player in the IT sector, experienced a slight dip of ₹955.12 crore, taking its market cap to ₹7,00,047.10 crore. Despite the dip, Infosys remains one of India’s largest IT companies, with a solid portfolio of global clients.
Market Overview:
During the same period, the broader market also saw positive movement. The BSE Sensex rose by 1,134.48 points (1.55%), while the NSE Nifty gained 427.8 points (1.93%). This upward trend in major indices reflects investor confidence, especially in the wake of strong corporate earnings and positive economic indicators.
Summary of Market Capitalisation and Financial Ratios:
| Company | Market Cap (₹ Crore) | 1-Week Change (₹ Crore) | PE Ratio | Dividend Yield |
|---|---|---|---|---|
| Reliance Industries | 16,90,328.70 | 66,985.25 | 30.5 | 0.33% |
| Tata Consultancy Services | 13,06,599.95 | 46,094.44 | 26.7 | 1.2% |
| State Bank of India | 6,53,951.53 | 39,714.56 | 15.4 | 1.5% |
| Bharti Airtel | 9,30,269.97 | 35,276.3 | 20.3 | 0.7% |
| ITC | 5,05,293.34 | 11,425.77 | 22.1 | 4.8% |
| ICICI Bank | 8,57,743.03 | 7,939.13 | 18.9 | 0.8% |
| Hindustan Unilever | 5,17,802.92 | 2,819.51 | 54.2 | 1.3% |
| HDFC Bank | 12,92,578.39 | -31,832.92 | 22.5 | 0.6% |
| Bajaj Finance | 5,20,981.25 | -8,535.74 | 42.6 | 0.4% |
| Infosys | 7,00,047.10 | -955.12 | 23.4 | 2.3% |
In conclusion, the performance of the Indian stock market has been strong, with major companies posting substantial gains. Reliance Industries and Tata Consultancy Services have emerged as the biggest winners, demonstrating the resilience and growth potential of key sectors like telecom, IT, and banking. However, declines in stocks like HDFC Bank and Bajaj Finance remind investors that market fluctuations are a part of the trading landscape, and careful analysis is required to make informed investment decisions.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.