Kamal Ghorui
A sharp sell-off in equities last week led to a significant erosion in the market value of the country’s most valuable companies, with the top 10 firms together losing Rs 4.48 lakh crore. Banking heavyweights State Bank of India and HDFC Bank saw the steepest decline in their valuations during the period. The fall in company valuations mirrored the broader weakness in the stock market. During the week, the BSE Sensex slumped by 4,354.98 points, a drop of 5.51%, while the NSE Nifty declined by 1,299.35 points, or 5.31%. The downturn came as rising crude oil prices heightened concerns about inflation and global economic stability amid the widening conflict in West Asia. “The primary driver behind the market weakness was the sustained rise in crude oil prices following the escalating conflict between Iran, the United States and Israel. Brent crude surged past USD 101 per barrel, raising concerns over India’s fiscal position and inflation outlook,” Ajit Mishra – SVP, Research, Religare Broking Ltd, said. Among the companies, State Bank of India recorded the largest drop in market capitalisation, which fell by Rs 89,306.22 crore to Rs 9,66,261.05 crore. HDFC Bank also registered a notable decline, with its valuation shrinking by Rs 61,715.32 crore to Rs 12,57,391.76 crore. Bajaj Finance witnessed a reduction of Rs 59,082.49 crore in its market value, taking its capitalisation to Rs 5,32,053.54 crore. Tata Consultancy Services (TCS) also saw a sharp fall, with Rs 53,312.52 crore wiped off its valuation, bringing it down to Rs 8,72,067.63 crore. ICICI Bank’s market capitalisation declined by Rs 42,205.04 crore to Rs 8,97,844.78 crore, while Bharti Airtel’s valuation dropped by Rs 38,688.78 crore to Rs 10,28,431.72 crore. Reliance Industries, the country’s most valued company, also registered a fall, with its market capitalisation slipping by Rs 33,289.88 crore to Rs 18,68,293.17 crore. The market value of Life Insurance Corporation of India (LIC) decreased by Rs 31,245.49 crore to Rs 4,88,985.57 crore. Infosys lost Rs 24,230.96 crore in valuation, taking its market capitalisation to Rs 5,06,315.58 crore. Hindustan Unilever recorded a decline of Rs 15,401.57 crore, pushing its market value down to Rs 5,07,640.94 crore. Despite the broad decline, Reliance Industries continued to hold the top position among India’s most valued firms. It was followed by HDFC Bank, Bharti Airtel, State Bank of India, ICICI Bank, TCS, Bajaj Finance, Hindustan Unilever, Infosys and LIC.
