Out of the top ten valued companies in India, seven of them lost a total of ₹1.25 lakh crore in terms of market capitalization on June 6 due to weakness in domestic markets, considering the continued selling by foreign institutional investors (FII).
Amongst the most valued companies, Reliance Industries had the biggest fall on the stock markets despite positive macroeconomic indicators like lower crude oil prices and appreciation of rupee.
The Sensex index of Bombay Stock Exchange fell by 532.4 points, or 0.71%, for the week ended June 6, whereas the Nifty index of National Stock Exchange fell by 181.05 points, or 0.76%.
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Reliance suffers biggest valuation hit
Reliance Industries saw its market capitalisation shrink by ₹39,718 crore, taking its valuation to ₹17.47 lakh crore.
Tata Consultancy Services (TCS) followed with a decline of ₹20,134.66 crore, bringing its market value down to ₹7.95 lakh crore.
Bharti Airtel lost ₹18,736.04 crore in market capitalisation, while Larsen & Toubro shed ₹16,880.2 crore during the week.
Life Insurance Corporation of India (LIC) witnessed a decline of ₹14,610.74 crore in valuation. Bajaj Finance lost ₹9,681.36 crore, while Hindustan Unilever’s market capitalisation fell by ₹5,909.23 crore.
The combined erosion across these seven companies stood at ₹1.25 lakh crore.
Banks buck the trend
While many heavyweight stocks witnessed selling pressure, major banks managed to make profits. State Bank of India was the biggest gainer out of the top 10 companies with a market capitalisation addition of ₹12,692.09 crore, bringing its valuation to ₹9.02 lakh crore.
Similarly, ICICI Bank added ₹4,484.86 crore, thus pushing its valuation to ₹9.05 lakh crore. Meanwhile, HDFC Bank added ₹4,101.47 crore and remained India’s second most valued firm with a market capitalisation of ₹11.50 lakh crore.
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Even though there was a weekly correction, Reliance Industries continued to be India’s most valued firm, followed by HDFC Bank, Bharti Airtel, ICICI Bank, State Bank of India, Tata Consultancy Services, Bajaj Finance, Larsen & Toubro, LIC and Hindustan Unilever.
In spite of this, it can be noted that the recent fall brings to light the volatility in the stock markets, where investor sentiment is driven by global capital flows.
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