Last week was no less than a shock for the investors of the Indian stock market. Seven of the top 10 most valuable companies of the country have faced huge financial losses. Within a few days, Rs 1.75 lakh crore was wiped out of the total market value (market capitalization) of these big companies. If we look at the business of the entire week, BSE’s main benchmark index Sensex fell by 949.74 points or 1.27 percent. On the same lines, NSE Nifty also recorded a decline of 294.9 points (1.27%).
Why did this disaster happen?
Many global and domestic reasons have been responsible for this huge fall in the equity market. According to Ajit Mishra, Senior Vice President (Research), Religare Broking Limited, the continuously increasing geopolitical tension in the Middle East has created an atmosphere of fear in the markets around the world. At the beginning of the week, fear of disruption in energy supply, weakness of the rupee and increasing fluctuations spoiled the market sentiment. However, in the middle of the week, the market tried to make a comeback due to the news of some easing of tension between America and Iran, but by Friday the selling pressure became so dominant that all the gains were lost and the indices fell face down.
Reliance got the biggest dent
Market leader Reliance Industries has suffered the most loss in this turmoil. In just one week, the market cap of the company fell by Rs 89,720.3 crore to Rs 18,24,515.62 crore. The banking sector was also in bad condition. The value of HDFC Bank, the country’s largest private bank, decreased by Rs 37,248.59 crore. Apart from this, State Bank of India (SBI) incurred a debt of Rs 35,399.42 crore and ICICI Bank incurred a debt of Rs 8,121.76 crore. Telecom giant Bharti Airtel, FMCG sector Hindustan Unilever and IT sector giant TCS also faced losses.
These 3 companies did wonders
On one hand, selling was dominant in the market, on the other hand, three of the top-10 companies moved in the opposite direction and made profits for the investors. The market cap of infrastructure giant Larsen & Toubro (L&T) increased by Rs 18,051.68 crore to Rs 4,90,536.19 crore. At the same time, the value of Bajaj Finance increased by Rs 8,680.36 crore. IT company Infosys also registered a gain of Rs 6,245.3 crore. Even after this entire reshuffle, Reliance Industries remains the country’s most valued company.
Also understand the roadmap of the new week
Amidst this weakness of the market, there is going to be a lot of movement in the primary market in the new week. On March 30, shares of ‘Central Mine Planning’ are going to be listed on BSE and NSE in the mainboard segment. Listing of ‘Specialty Medicines’ can also happen on BSE SME on the same day. On April 1, ‘Tipco Engineering’ will enter the stock market on BSE SME. After this, April 2 is a very important day, when shares of ‘Sai Parentals’, ‘Pavrika’ and ‘Amir Chand Jagdish Kumar’ can be listed on BSE and NSE. Besides, listing of ‘Highness Microelectronics’ is also decided on BSE SME.
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