8 Out Of Top 10-Most Valued Firms Lost Over Rs 2.28 Lakh Crore M-Cap On BSE; HDFC Bank, Reliance Worst Hit

Indian markets halted their three-consecutive weekly upside to end in a bearish tone during the trading week from September 18th to 22nd. Both Sensex and Nifty 50 have nosedived by over 2.6% each during the week that went by. Beaten by bears, eight of the top ten most valued firms lost a market capitalisation of over Rs 2.28 lakh crore. Heavyweights HDFC Bank and Reliance Industries (RIL) were the worst hit.

The trading week from September 18th to 22nd was short by 1 day due to the holiday on September 19 the onset of the Ganesh Chaturthi festival across India. That being said, during the holiday-shortened trading week, Sensex declined by 1,829.48 points or 2.69% and Nifty 50 plunged by 518.1 points or 2.56%.

As per the PTI report, the combined market valuation of eight of the 10 most valued firms plunged by Rs 2,28,690.56 crore in a holiday-shortened last week, with HDFC Bank and Reliance Industries taking the biggest hit, amid an overall weak trend in equities.

Among the top 10 most valued firms, HDFC Bank, Reliance, ICICI Bank, Infosys, ITC, SBI, Bharti Airtel and Bajaj Finance witnessed outflow, while Tata Consultancy Services (TCS) and Hindustan Unilever (HUL) gained.

Last week, HDFC Bank lost a mind-boggling Rs 99,835.27 crore market cap to Rs 11,59,154.60 crore. This largest private sector bank's share price nosedived by 8% in the week.

Further, Mukesh Ambani's Reliance Industries lost Rs 71,715.6 crore to Rs 15,92,661.42 crore, as the stock dipped by more than 4% during the week.

Meanwhile, HDFC Bank's rival ICICI Bank's market cap stood at Rs 6,65,432.34 crore as of September 22, down by Rs 29,412.17 crore on a week-on-week basis. Bharti Airtel's m-cap dropped by Rs 12,964.55 crore to Rs 5,10,759.01 crore.

Also, the m-cap of Infosys and ITC fell by Rs 6,744.34 crore and Rs 6,484.52 crore respectively -- totalling Rs 6,20,893.53 crore and Rs 5,52,680.92 crore as of September 22, 2023. Furthermore, the NBFC giant was on a similar boat with an m-cap of Rs 4,52,773 crore, down by Rs 1,266.37 crore week-on-week basis. Additionally, the largest public sector lender, State Bank of India (SBI) lost Rs 267.74 crore of m-cap to Rs 5,33,781.04 crore.

On the other hand, HUL's market value rose by Rs 2,913.49 crore during the week, totalling to Rs 5,83,239.04 crore. Similarly, tech giant, TCS' market cap increased by Rs 1,024.53 crore to Rs 13,18,228.14 crore.

On rank-wise, Reliance continues to be the most valued firm in terms of market cap on BSE, followed by RCS, HDFC Bank, ICICI Bank, Infosys, HUL, ITC, State Bank of India, Bharti Airtel and Bajaj Finance.

On September 22nd, the Sensex ended at 66,009.15, down by 221.09 points or 0.33%. While Nifty 50 tumbled by 68.10 points or 0.34% to settle at 19,674.25.

Arvinder Singh Nanda, Senior Vice President, of Master Capital Services said, "Benchmark Indices declined to end lower for the fourth day. Nifty, and Sensex declined after three weeks of advances. Except PSU Banks, all sectoral indices declined this week with Realty, Metal and Banks declining the most."

Also, Santosh Meena, Head of Research, Swastika Investmart said, "This week has seen significant profit booking in the market, primarily driven by a steep decline in HDFC Bank, weak global cues, and substantial selling by Foreign Institutional Investors (FIIs). The global markets are facing challenges, particularly after the ultra-hawkish FOMC policy. Technically, major indices such as Dow Jones, Nasdaq, and S&P are showing signs of a breakdown in a bearish head and shoulder formation, potentially leading to a deeper correction in the US market. The aggressive selling by FIIs, especially in heavyweights like HDFC Bank, Reliance, and ICICI Bank, is a crucial factor affecting the direction of the headline indices. However, the broader and primary markets are relatively stable, largely due to domestic liquidity."

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