Top Indian Firms Lose Over Rs 3 Lakh Crore as IT Giants TCS, Infosys Lead Market Decline
In a significant market downturn last week, the combined market valuation of six of India's top-10 most valued companies eroded by more than Rs 3 lakh crore. The bearish trend in equities particularly impacted IT majors Tata Consultancy Services (TCS) and Infosys, which emerged as the biggest laggards during this period of financial turbulence.
The 30-share BSE Sensex declined by 953.64 points, or 1.14 percent, over the course of the week, reflecting broader market weakness that affected multiple sectors and heavyweight stocks.
IT Majors Take the Biggest Hit
TCS witnessed its market valuation tumble by a staggering Rs 90,198.92 crore, bringing its total market cap down to Rs 9,74,043.43 crore. Similarly, Infosys saw its valuation erode by Rs 70,780.23 crore, settling at Rs 5,55,287.72 crore by week's end.
Other prominent companies facing valuation erosion included:
- HDFC Bank: Market capitalisation declined by Rs 54,627.71 crore to Rs 13,93,621.92 crore
- Reliance Industries: Valuation plunged Rs 41,883 crore to Rs 19,21,475.79 crore
- Life Insurance Corporation of India (LIC): Market capitalisation dropped Rs 23,971.74 crore to Rs 5,46,226.80 crore
- Bharti Airtel: Valuation declined Rs 19,244.61 crore to Rs 11,43,044.03 crore
Select Banking and Financial Stocks Buck the Trend
While most top firms faced valuation erosion, several banking and financial institutions managed to post gains despite the challenging market environment:
- State Bank of India (SBI): Valuation jumped Rs 1,22,213.38 crore to Rs 11,06,566.44 crore
- Bajaj Finance: Added Rs 26,414.44 crore, taking its market cap to Rs 6,37,244.64 crore
- Larsen & Toubro: Valuation increased Rs 14,483.9 crore to Rs 5,74,028.93 crore
- ICICI Bank: Market capitalisation rose Rs 5,719.95 crore to Rs 10,11,978.77 crore
Despite the fluctuations, Reliance Industries maintained its position as India's most valued firm, followed by HDFC Bank, Bharti Airtel, SBI, ICICI Bank, TCS, Bajaj Finance, Larsen & Toubro, Infosys and LIC in that order.
Broad-Based Selloff Weighs on Markets
The erosion in market capitalisation occurred amid a broader selloff in equities that intensified toward the end of the week. On Friday alone, the Sensex tumbled 1,048.16 points, or 1.25 percent, to close at 82,626.76, while the NSE Nifty plunged 336.10 points, or 1.30 percent, to settle at 25,471.10.
On a weekly basis, the Nifty declined 222.6 points, or 0.86 percent, reflecting sustained selling pressure across multiple trading sessions.
The total market capitalisation of BSE-listed firms eroded by Rs 7,02,017.71 crore to Rs 4,65,46,643.20 crore ($5.13 trillion), indicating widespread investor caution and profit-taking across the market spectrum.
AI Disruption Fears and Sectoral Performance
Market analysts attributed the weakness to several factors, including weak global cues, a softer earnings season, and emerging pressure on technology stocks amid concerns over AI-led disruption. The technology sector faced particular headwinds as investors grew increasingly concerned that rapid AI advancements could disrupt traditional service models and weigh on future revenue visibility for Indian IT firms.
Siddhartha Khemka, head of research, wealth management at Motilal Oswal Financial Services Ltd, noted: "The benchmarks nosedived following weaker-than-expected results and continued pressure in technology stocks. The Nifty IT index touched a 10-month low during the session before closing 1.4 percent lower, even as selective buying helped it recover from intraday lows."
Vinod Nair, head of research at Geojit Investments Limited, added: "Sentiment gains from the US-India trade deal have faded as renewed AI-driven disruption fears weigh on risk appetite. Markets worry that Indian IT firms dependent on the labour arbitrage model may face tougher competitive pressure than their Nasdaq peers."
Sectorally, metal stocks led the decline with a 3.21 percent fall, followed by Realty and Commodities (2.27 percent each), Utilities (2.26 percent), Energy (1.94 percent), Oil & Gas (1.86 percent), Power (1.85 percent), FMCG (1.74 percent) and Services (1.72 percent).
Institutional investor activity showed mixed patterns, with foreign institutional investors buying equities worth Rs 108.42 crore on Thursday, while domestic institutional investors were net buyers of Rs 276.85 crore, according to exchange data.
Overall, last week's sharp erosion in the valuations of IT heavyweights, coupled with broad-based selling pressure, weighed significantly on the top-10 most valued firms, even as select banking and financial stocks managed to buck the prevailing negative trend.
