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Data on BSE shows that the total equity market capitalisation stood at more than ₹251.84 lakh crore on Friday. From June 6 to 10th, the market cap plunged by ₹5.16 lakh crore. The valuation was a little over ₹257 lakh crore on June 3.
Notably, in the past five trading sessions, Sensex nosedived by 1,465.79 points or 2.63%, while Nifty 50 shed 382.5 points or 2.31%.
On Friday alone, Sensex dropped by 1,016.84 points or 1.84% and ended at 54,303.44. Nifty 50 closed at 16,201.80 down by 276.30 points or 1.68%.
Vinod Nair, Head of Research at Geojit Financial Services said, “Rising inflation fears gripped the domestic market leading to heavy sell-off ahead of the release of US inflation data & Fed policy meet next week. The inflation data will be crucial to sense the quantum of a rate hike. European Central Bank in its policy meeting signaled to start rate hike from next month and a large change in September. Persisted foreign fund outflow and widening trade deficit due to the elevated oil prices led to depreciation of INR, weakening the sentiment.”
The top ten most valued companies accounted for nearly half of the losses witnessed on Dalal Street. As per a PTI report, the market capitalisation (m-cap) of the top-10 most valued companies eroded by over ₹2.29 lakh crore last week.
On BSE, LIC’s market cap slipped by a massive ₹57,272.85 crore to ₹4,48,885.09 crore. The insurer holds the seventh rank in the most valued firms list currently on the exchange. Meanwhile, LIC which got listed on May 17, has witnessed a more than ₹1.51 lakh crore decline in market cap against the IPO issue price. At the IPO’s upper price band of ₹949 apiece, LIC’s market cap before listing stood at ₹6,00,240 crore.
Meanwhile, RIL’s market cap dipped by ₹44,311.19 crore to ₹18,36,039.28 crore. Furthermore, IT giants TCS and Infosys cumulatively lost a market cap of ₹45,746.13 crore.
As of June 10, TCS’ market cap stood at ₹12,31,398.85 crore and Infosys at ₹6,21,502.63 crore.
At present, in terms of market capitalisation, RIL holds the top spot followed by TCS. HDFC Bank and Infosys hold the third and fourth spots as most valued companies.
HDFC Bank’s market cap dropped by ₹16,433.92 crore to ₹7,49,880.79 crore, while its peers SBI’s market cap contracted by ₹2,231.15 crore to ₹4,12,138.56 crore, and ICICI Bank’s market cap slipped by ₹16,305.19 crore to ₹5,00,744.27 crore.
ICICI Bank is the sixth most valued company and SBI holds the eighth rank behind LIC.
FMCG giant Hindustan Unilever, which is the fifth most valued company, saw its market cap drop by ₹21,674.98 crore to ₹5,16,886.58 crore.
Meanwhile, HDFC’s valuation fell by ₹17,879.22 crore to ₹3,95,420.14 crore, and telecom giant Bharti Airtel’s valuation dipped by ₹7,359.31 crore to ₹3,69,613.44 crore. HDFC and Airtel hold the ninth and tenth rank in the most valued companies list.
The order of these top-10 firms on BSE are – RIL, followed by TCS, HDFC Bank, Infosys, HUL, ICICI Bank, LIC, SBI, HDFC, and Bharti Airtel
Yesha Shah, Head of Equity Research, Samco Securities said, “Despite the fact that this week’s trading patterns suggest additional downside, the overall bearish momentum has moderated as Nifty is currently trading above the falling resistance line. As long as Nifty does not fall below 15,900, there is a significant chance that it can test 16,800 levels. We recommend traders keep a neutral view for the coming week and avoid aggressive trades on either side.”
Weekly market outlook:
Samco Securities, Head of Equity Research, said, “Globally, Fed’s interest rate decision as well as the volatility in crude price will keep market anxious. Back home, the CPI and WPI inflation print will be the main headliner next week. Markets participants will keenly analyse whether the import duty restrictions and rate hikes have had a positive impact on the inflation numbers.”
Furthermore, Shah added, “statistics on India’s trade balance will be closely monitored as this statistic clocked a record high in May 2022. The movement of rupee against the dollar will also be kept an eye on. Amid increasing macro uncertainties, investors are advised to exercise extreme caution till markets decisively find their direction.”
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