Six of the top ten valued firms recently had a loss of Rs. 78275.12 crore in the market Capitalization. These six companies are – Tata Consultancy Services (TCS), Reliance Industries Ltd (RIL), HDFC Bank, Bharati Airtel, Hindustan Unilever Limited, and Kotak Mahindra Bank. However, there was an increase in the market Capitalization of Infosys, HDFC, ITC, and ICICI Bank’s last week.
RIL was the leading companyand was at the topmost position in the ranking of ten most valued companies followed by TCS, HDFC Bank, HUL, Infosys, HDFC, Bharti Airtel, Kotak Mahindra Bank, ITC, and ICICI Bank. These six companies who are in the top ten list have witnessed a combined erosion of Rs.78275.12 crore in the market Capitalization last week. Last week there was a decline of 163.23 points or 0.42 per cent in SENSEX.
Kotak Mahindra Bank’s m-cap eroded by Rs 6,728.15 crore to Rs 2,58,855.93 crore, and Rs 5,251.77 crore to Rs 5,68,867.60 crore to that of HDFC Bank. The value of HDFC, by comparison, jumped from Rs 12,609.98 crore to Rs 3,21,014.11 crore.
The price of Reliance Industries Limited, (RIL) collapsed by Rs 20,666.46 crore making its total valuation at present to Rs 13,40,213.50 crore, taking the biggest decrease among the 10 most valued firms. This was a major plunge that had happened to the company recently. TCS’ market capitalization declined from Rs 19,700.02 crore to Rs 8,41,453.51 crore and that of Bharti Airtel declined from Rs 17,294.12 crore to Rs 2,88,544.43 crore. The valuation of Hindustan Unilever Limited diminished to Rs 5,10,792.18 crore. There was a decline of Rs 8,634.6 crore for the company.
However, ICICI Bank witnessed an increase in its market Capitalization, which is an addition of Rs 2,338.16 which made the total to Rs 2,34,090.06 and the Infosys valuation rose by Rs 1,171.31 and its total became Rs 4,06,123.91. ITC’s Market Capitalization gained Rs 604.97 crore and thus its total valuation arrived at Rs 2,41,787.95.
All the six companies that have faced this major loss are the topmost valued domestic companies. The analysts and economists have said that one of the reasons for this decline is due to the COVID 19 Pandemic, which has adversely affected the market during the last few months. The Pandemic led to supply chain disruptions, cutting down production and it had led to a decline in the aggregate demand and consumption. Economists are hoping that the Indian economy would revive slowly from the pandemic with the discovery of the Vaccine.
