Last week, due to the rise in the stock market, the market value of 8 out of the top 10 companies increased by ₹ 4.13 lakh crore. HDFC Bank gained the most, while Reliance Industries and Infosys suffered slight losses.
Business: The rise in the Indian stock market in the last trading week led to a big increase in the wealth of investors. The total market capitalization (market cap) of 8 of the country’s top-10 most valuable companies increased by more than ₹4.13 lakh crore. The biggest contributor to this surge was the banking sector, where HDFC Bank and ICICI Bank performed the strongest.
Last week, BSE Sensex rose 4,230.7 points or 5.77%, while Nifty 50 recorded a rise of 1,337.5 points (5.88%). This was one of the strongest weekly gains in recent years.
The main reasons behind this rally were the fall in crude oil prices in the international market, temporary easing of US-Iran tension, and strong investor confidence at the domestic level. These signals gave new energy to the Indian market.
HDFC Bank became the biggest winner
HDFC Bank benefited the most from the week-long rise. The market cap of the bank increased by ₹91,282.67 crore and crossed ₹12.47 lakh crore. This increase shows that investor confidence in big private banks remains strong.
Experts believe that:
strong balance sheet,
Better credit growth,
low npa,
And interest rates are expected to remain stable
Due to these reasons buying in banking shares increased.
ICICI Bank and Bajaj Finance also gave excellent returns
ICICI Bank’s market value increased by ₹76,036.36 crore to reach ₹9.46 lakh crore. This is a sign of increasing investor confidence in the private banking sector.
Bajaj Finance also recorded a strong rise. The market cap of the company increased by ₹60,980.35 crore.
Major reasons for the boom in the financial sector
better loan demand,
strong consumer spending,
And interest rates are expected to remain stable.
Bharti Airtel and SBI also increased investors’ wealth
Value of giant Larsen & Toubro increased by ₹47,624.97 crore.
Bharti Airtel’s market value increased by ₹45,873.43 crore.
Whereas State Bank of India, the country’s largest government bank, registered an increase of ₹ 43,614.67 crore.
This increase shows that:
infrastructure investment,
telecom data demand,
and government banking reforms
Strengthening market sentiment.
TCS and HUL also showed strength
The value of IT sector major Tata Consultancy Services increased by ₹ 26,303.49 crore.
At the same time, the market cap of consumer sector giant Hindustan Unilever increased by ₹ 21,287.29 crore.
It is clear from this that:
defensive sector,
IT,
and FMCG
Shopping was seen in all.
Minor blow to Reliance and Infosys
While most of the big companies gained, Reliance Industries and Infosys suffered slight losses.
Infosys’ market cap declined by ₹3,285.03 crore.
Reliance Industries’ value declined marginally by ₹947.28 crore. However, despite this, Reliance remains the most valuable company in the country with a value of more than ₹ 18.27 lakh crore.
Two big reasons for the rise in the market
1. Fall in crude oil prices
An import-dependent country like India got relief when the price of Brent crude fell below $100 per barrel.
Due to oil being cheap:
Inflation pressure reduces,
Current account deficit remains under control,
And companies’ costs decrease.
2. Easing of geopolitical tensions
The news of temporary ceasefire between America and Iran brought relief to global markets. This also increased the sense of risk taking in the Indian market.
What should investors keep an eye on going forward?
Experts believe that there is a positive environment in the market at the moment, but:
global geopolitical situation,
US interest rate signals,
purchases by foreign investors,
and quarterly results of companies
Will decide the future direction.
Investors should avoid rushing into this bullish trend:
Investing in companies with strong fundamentals,
portfolio balance,
and long term strategy
But attention should be paid.
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