Market Valuation Takes a Hit: Reliance Industries Leads the Decline
Market Overview
New Delhi: Last week, the total market capitalization of six of the ten most valuable companies in India decreased by Rs 2.22 lakh crore, primarily driven by a significant drop in Reliance Industries, reflecting a bearish trend in the stock market.
The BSE benchmark index fell by 294.64 points, equivalent to a 0.36 percent decline.
According to Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, "The markets have closed lower for the fourth consecutive week, as caution dominated amid mixed signals. Initially, the market was influenced by earnings reports, with the banking sector showing resilience thanks to positive results from HDFC Bank and ICICI Bank. However, declines in stocks like Reliance limited any potential recovery."
He further noted that foreign fund outflows and uncertainty surrounding trade agreements ahead of the August 1 deadline contributed to the heightened volatility.
Among the top ten companies, Reliance Industries, Tata Consultancy Services (TCS), Infosys, Bajaj Finance, Hindustan Unilever, and Life Insurance Corporation of India (LIC) collectively saw a market valuation drop of Rs 2,22,193.17 crore.
In contrast, HDFC Bank, Bharti Airtel, ICICI Bank, and State Bank of India experienced increases in their valuations.
Reliance Industries' market value plummeted by Rs 1,14,687.7 crore, bringing its total to Rs 18,83,855.52 crore, marking the largest loss among the top firms.
Infosys also faced a decline, losing Rs 29,474.56 crore, resulting in a market capitalization of Rs 6,29,621.56 crore.
LIC's valuation fell by Rs 23,086.24 crore to Rs 5,60,742.67 crore, while TCS saw a decrease of Rs 20,080.39 crore, bringing its valuation to Rs 11,34,035.26 crore.
Bajaj Finance's market cap dropped by Rs 17,524.3 crore to Rs 5,67,768.53 crore, and Hindustan Unilever's valuation fell by Rs 17,339.98 crore to Rs 5,67,449.79 crore.
On a positive note, HDFC Bank's market valuation rose by Rs 37,161.53 crore, reaching Rs 15,38,078.95 crore.
ICICI Bank added Rs 35,814.41 crore to its valuation, totaling Rs 10,53,823.14 crore.
Bharti Airtel's market cap increased by Rs 20,841.2 crore to Rs 11,04,839.93 crore, while State Bank of India saw a rise of Rs 9,685.34 crore, bringing its valuation to Rs 7,44,449.31 crore.
Currently, Reliance Industries holds the title of the most valuable domestic company, followed by HDFC Bank, TCS, Bharti Airtel, ICICI Bank, State Bank of India, Infosys, Bajaj Finance, Hindustan Unilever, and LIC.