The Indian share market experienced a tumultuous week, with the top-valued companies bearing the brunt of the downturn. A collective loss of over Rs 1.28 lakh crore was recorded in the market capitalization of eight out of the top ten companies. IT giants Tata Consultancy Services (TCS) and Infosys suffered the most significant losses amidst widespread selloffs fueled by anxieties over a potential global recession. However, HDFC Bank bucked the trend, witnessing a substantial surge in its market cap, adding Rs 32,759 crore to reach Rs 12,63,601 crore. Life Insurance Corporation of India (LIC) also saw a positive shift, adding Rs 1,075 crore to its market cap, reaching Rs 7,47,677 crore.
HDFC Bank’s share price performance played a key role in its market cap growth. On July 29th, the bank’s shares opened at Rs 1616.40, and after a week of trading, they closed at Rs 1658.05 on Friday. This marked a 2.58% increase in value, translating to a gain of Rs 41.65 per share and a total gain of Rs 32,759 crore for investors. In stark contrast, the overall market witnessed a considerable decline on Friday, with a loss of over Rs 4 lakh crore in the market cap of nearly all listed firms on the Bombay Stock Exchange. TCS and Infosys were again at the forefront of this decline. TCS experienced a Rs 37,971 crore drop in its valuation, bringing its total market cap to Rs 15,49,626 crore. Infosys, on the other hand, saw its market cap shrink by Rs 23,811 crore to Rs 7,56,250 crore.
The broader market indices also reflected the bearish sentiment. The Sensex plummeted 885 points to 80,981, while the Nifty dropped 293 points to 24,717. This widespread sell-off suggests a possible exhaustion point in the market, driven by a lack of new catalysts. Market analysts have highlighted the increased likelihood of further consolidation due to various factors, including premium valuations, weak Q1 earnings results, and ongoing consolidation in global markets. Despite the recent volatility, Reliance Industries remains the most valued firm, followed by TCS, HDFC Bank, Bharti Airtel, ICICI Bank, State Bank of India, Infosys, LIC, Hindustan Unilever, and ITC.
