The equity market in India suffered losses last week as indexes closed their markets in the red on the majority of trading days. Benchmark indexes such as the Nifty 50 and BSE Sensex suffered losses for four consecutive days from Monday onwards. Only on the last day of the week, i.e., Friday, these indexes were able to close their trade in the green.
Six out of ten most valued firms in the country showed a decrease in the size of their combined market capitalisation.
Just last week, these six firms lost ₹1,68,260.37 crore from their valuation. The weak trend in global markets coupled with inflationary fears and increased selling of Indian stocks by foreign institutional investors caused a disruption in the market. First quarter financials of Information technology companies, which failed to live up to forecasts and expectations, also pulled down indexes last week.
Market valuation of Computer Software & Consulting company, Tata Consultancy Services (TCS) took the biggest blow last week as the valuation declined by ₹99,270.07 crores to reach ₹10,95,355.32 crore. Share prices of TCS had gone down last week after the company released its earnings report for the quarter ending in June.
The earning numbers posted by the company failed to meet expected numbers in the market, which had a double-down effect on its share prices. Soon after TCS, HCL Tech also released its financials, which again failed to meet market expectations.
Infosys Limited, which is the second largest IT Company in India, below TCS, also saw a dip in its market valuation last week. It reduced by ₹35,133.64 crores to post a valuation of ₹6,01,900.14 crore.
In banking stocks listed on Sensex, India’s largest private sector bank, HDFC Bank Limited suffered a loss of ₹18,172.43 crores in its valuation. The current market valuation of the bank is ₹7,57,659.72 crore.