MicroStrategy, a company known for its massive Bitcoin holdings, has seen its valuation skyrocket by $50 billion in just two months, driven by the cryptocurrency’s recent surge. The company’s stock reached a record high, surpassing its dot-com bubble peak, and its Bitcoin portfolio has generated over $13 billion in unrealized profits. MicroStrategy’s aggressive Bitcoin strategy is attracting attention and highlighting the potential for corporate adoption of cryptocurrencies.
Reliance Industries, led by Asia’s richest man Mukesh Ambani, experienced a significant decline in its market valuation on Monday. The company’s share price dropped by over 3%, eroding its market cap by Rs 70,195.32 crore. This decline was attributed to a broader sell-off in Indian equities, mirroring global market trends. Despite the loss, Reliance remains India’s most valued company.
Reliance Industries, owned by Asia’s richest man Mukesh Ambani, experienced a significant decline in its market valuation on Monday. The drop, exceeding Rs 73,470 crore, followed a 5% decrease in the company’s net profit for the June quarter. This decline was attributed to lower fuel cracks and petrochemical margins, despite growth in the telecom and retail sectors.
Nine of the top-10 most valued Indian firms added a collective Rs 2,89,699.42 crore in market valuation last week, led by Reliance Industries. The surge follows a strong rally in the Indian equity markets, with the BSE Sensex gaining over 2% last week and 7.14% in June. The Sensex even breached the 79,000 mark on Thursday.
The S&P 500 has continued its ascent in 2024, but is the market overvalued? The answer depends on the level of interest rates and economic activity, as well as people’s expectations. The market yield is currently between 4.3% and 4.7%, which can be compared to the current 10-year interest rate of 4.3%. However, if we downplay the exaggerated weight of the “Magnificent Seven” in the S&P 500 index, the market yield is actually 5.8%. This suggests that the market is fairly priced.
