Amidst heightened global and domestic uncertainties, six of India’s top ten most valued firms, including Bharti Airtel and HDFC Bank, witnessed a substantial decline in their combined market valuation, highlighting the ongoing volatility in the Indian equities market.
Illustration: Dominic Xavier/Rediff
Key Points
- Six of India’s top ten most valued firms collectively lost Rs 64,734.46 crore in market valuation during a recent holiday-shortened week.
- Bharti Airtel experienced the most significant decline, with its market valuation eroding by Rs 29,993.07 crore.
- Market volatility was attributed to a combination of global and domestic uncertainties, including US-Iran tensions, fluctuating crude oil prices, and foreign institutional outflows.
- Despite overall declines, Tata Consultancy Services (TCS) and Infosys saw notable gains in their market capitalisation.
- Reliance Industries maintained its position as the most valued firm, followed by HDFC Bank and Bharti Airtel.
The combined market valuation of six of the top-10 most valued firms declined by Rs 64,734.46 crore in a holiday-shortened last week, with Bharti Airtel taking the biggest hit, reflecting the broader weakness in the equities market.
Last week, the BSE benchmark Sensex declined 263.67 points, or 0.35 per cent, and the NSE Nifty fell 106.5 points, or 0.46 per cent.
Factors Driving Market Volatility
“Markets ended lower for the sixth consecutive week, declining by nearly half a per cent, reflecting heightened volatility driven by a mix of global and domestic uncertainties.
“The holiday-shortened week began on a weak note as escalating US-Iran tensions and a sharp rise in crude oil prices weighed on sentiment, triggering broad-based selling pressure,” Ajit Mishra, SVP, Research, Religare Broking Ltd, said.
However, markets staged a mid-week recovery supported by easing geopolitical concerns and softer oil prices, he added.
“Despite this rebound, volatility remained elevated due to fluctuating global cues, continued foreign institutional outflows, rupee weakness, and inflation concerns, Mishra said.
Market Valuation Declines
The market valuation of Bharti Airtel eroded by Rs 29,993.07 crore to Rs 10,20,420.26 crore. ICICI Bank’s valuation tanked by Rs 12,845.81 crore to Rs 8,70,705.49 crore.
Bajaj Finance lost Rs 11,169.36 crore from its market valuation, which stood at Rs 5,14,226.12 crore.
The market capitalisation (mcap) of HDFC Bank dropped by Rs 7,822.79 crore to Rs 11,56,195.90 crore, and that of Hindustan Unilever’s mcap declined by Rs 2,349.59 crore to Rs 4,85,190.60 crore.
State Bank of India’s market capitalisation diminished by Rs 553.84 crore to Rs 9,41,015.31 crore.
Gainers in the Market
In sharp contrast, the market valuation of Tata Consultancy Services (TCS) surged by Rs 22,359.78 crore to Rs 8,87,028.43 crore.
The mcap of Infosys soared by Rs 12,374.76 crore to Rs 5,27,409.43 crore, and that of Larsen & Toubro added Rs 6,575.43 crore to Rs 4,97,111.62 crore.
The market valuation of Reliance Industries gained Rs 3,518.45 crore to Rs 18,28,034.07 crore.
Top Valued Firms
Reliance Industries retained the title of the most valued firm, followed by HDFC Bank, Bharti Airtel, State Bank of India, Tata Consultancy Services Ltd, ICICI Bank, Infosys, Bajaj Finance, Larsen & Toubro, and Hindustan Unilever.
