The combined market valuation of nine out of India's top-10 most valued companies witnessed a staggering decline of ₹2.51 lakh crore during the previous trading week, as equity markets remained under severe pressure. This massive erosion in market capitalisation occurred in tandem with a significant downturn in benchmark indices, reflecting widespread investor pessimism.
Market Rout Takes Heavy Toll on Blue-Chip Companies
The BSE benchmark Sensex experienced a substantial correction, plummeting by 2,032.65 points or 2.43 per cent over the course of the week. This bearish sentiment directly impacted the valuation of India's corporate giants, with Reliance Industries Limited (RIL) absorbing the most substantial blow among the top performers.
Analysts Point to Multiple Pressure Points
Market experts attributed the sharp sell-off to a combination of domestic and global headwinds. Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, highlighted several key factors driving the downturn. "Markets witnessed a sharp sell-off during the week, with bears firmly in control. Weak global cues, persistent Foreign Institutional Investor (FII) outflows, a depreciating rupee, and subdued corporate earnings kept pressure elevated throughout the week," Mishra explained.
Echoing similar concerns, Santosh Meena, Head of Research at Swastika Investmart Ltd, provided additional context for the market correction. "The correction was fuelled by a confluence of factors: escalating geopolitical tensions, aggressive FII selling, and panic regarding the Rupee's weakness," Meena stated, analysing the market sell-off.
Detailed Breakdown of Valuation Losses
The collective market capitalisation of the nine affected firms plunged by ₹2,51,711.6 crore. A closer examination reveals the extent of damage suffered by individual corporate behemoths:
- Reliance Industries: The conglomerate's market valuation tumbled by a massive ₹96,960.17 crore, settling at ₹18,75,533.04 crore, marking the single largest decline.
- ICICI Bank: The private sector lender's valuation eroded by ₹48,644.99 crore to ₹9,60,825.29 crore.
- HDFC Bank: Another banking major, HDFC Bank, saw its valuation tank by ₹22,923.02 crore, reaching ₹14,09,611.89 crore.
- Bharti Airtel: The telecom giant's market capitalisation diminished by ₹17,533.97 crore to ₹11,32,010.46 crore.
- Tata Consultancy Services (TCS): The IT bellwether's mcap dropped by ₹16,588.93 crore to ₹11,43,623.19 crore.
- Larsen & Toubro: The engineering and construction major's valuation tanked by ₹15,248.32 crore to ₹5,15,161.91 crore.
- Bajaj Finance: The NBFC's mcap declined by ₹14,093.93 crore to ₹5,77,353.23 crore.
- State Bank of India: The public sector bank's valuation edged lower by ₹11,907.5 crore to ₹9,50,199.77 crore.
- Infosys: The IT services company's market valuation dived by ₹7,810.77 crore to ₹6,94,078.82 crore.
A Lone Bright Spot Amid the Gloom
In contrast to the widespread declines, Hindustan Unilever Limited (HUL) emerged as the sole gainer among the top-10 firms. The FMCG major's market capitalisation actually climbed by ₹12,311.86 crore, reaching ₹5,66,733.16 crore, providing a rare positive note in an otherwise bleak landscape.
Ranking of India's Most Valued Firms
Despite the significant valuation erosion, the hierarchy of India's most valued companies remained largely unchanged at the week's end. Reliance Industries continued to hold the top position, followed by HDFC Bank, Tata Consultancy Services (TCS), Bharti Airtel, and ICICI Bank. State Bank of India, Infosys, Bajaj Finance, Hindustan Unilever, and Larsen & Toubro completed the list of the top ten most valued firms by market capitalisation.
The substantial losses underscore the vulnerability of even the largest corporations to broader market sentiment, particularly when influenced by a mix of global uncertainties, currency fluctuations, and capital outflows. Investors and market participants are now closely monitoring upcoming corporate results and macroeconomic data for signs of stabilisation or further direction.
