Image Source: Supermarket News
It has been an exciting week for the Indian equities as the market capitalization of India's top-10 most valued companies rocketed by a whopping Rs 3.84 lakh crore owing to a big rally in the stock markets, led by HDFC Bank and Bharti Airtel that saw the stock prices of both the companies galloping northwards on Monday.
Key Highlights
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Monstrous Market Cap Gains: Market value of the top-10 companies surged by Rs 3,84,004.73 crore in the holiday-shortened week, in line with a steep rise in equities.
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Stock Market Rally: The BSE Sensex rallied 3,395.94 points (4.51%), while the NSE Nifty rose by 1,023.1 points (4.48%), registering a strong bounce back after recent volatility.
Biggest Gainers:
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HDFC Bank: Market cap increased by Rs 76,483.95 crore to Rs 14,58,934.32 crore.
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Bharti Airtel: Contributed Rs 75,210.77 crore, taking the valuation to Rs 10,77,241.74 crore.
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Reliance Industries: Added Rs 74,766.36 crore, retaining its lead at Rs.17,24,768.59 crore.
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ICICI Bank: Increased by Rs 67,597 crore to Rs 10,01,948.86 crore.
Other Significant Movers:
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State Bank of India: Increased by Rs 38,420.49 crore to Rs 7,11,381.46 crore.
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TCS: Increased Rs 24,114.55 crore to Rs 11,93,588.98 crore.
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Bajaj Finance: Increased by Rs 14,712.85 crore to Rs 5,68,061.13 crore.
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ITC: Increased by Rs 6,820.2 crore to Rs 5,34,665.77 crore.
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Infosys: Increased by Rs 3,987.14 crore to Rs 5,89,846.48 crore.
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Hindustan Unilever: Contributed Rs 1,891.42 crore to Rs 5,57,945.69 crore.
Market Drivers
Market experts attribute the rally to:
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Hope of deferment of tariffs and exemptions on certain products, which sparked optimism about favorable trade negotiations.
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Positive news on a regular monsoon and softening retail inflation, which fueled hopes of possible policy rate reductions.
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Lack of significant negative surprises from international markets, further lifting investor confidence.
Ajit Mishra, SVP, Research at Religare Broking Ltd, said,
"The rally was chiefly driven by hope in regard to tariff deferment and recent exemptions on certain items, instilling optimism for possible negotiations that could ease the blow on global trade. Throughout the week, market players reacted favorably to a host of positive news, such as reports on a normal monsoon, softening retail inflation, and the lack of any significant negative surprises from across the world."
Current Rankings by Market Capitalization
1 Reliance Industries
2 HDFC Bank
3 TCS
4 Bharti Airtel
5 ICICI Bank
6 State Bank of India
7 Infosys
8 Hindustan Unilever
9 Bajaj Finance
10 ITC
Outlook
The increase in market capitalization reflects renewed faith in the Indian economy, with investors responding positively to domestic as well as global trends. The gains during the week, especially in banking and telecom majors, indicate widespread optimism in major sectors.
Sources: Moneycontrol, Deccan Herald, The Week, Rediff Money
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