The combined market capitalisation of seven of India’s top ten most valued companies declined by ₹35,439.36 crore during a holiday-shortened trading week, reflecting weak investor sentiment in the equity markets. State Bank of India (SBI) emerged as the worst-hit company in terms of market value erosion.
The decline came despite marginal gains in the broader stock market indices, as investors remained cautious and selective in their buying amid global and domestic uncertainties.
SBI Suffers the Biggest Loss
Among the major firms, SBI recorded the sharpest fall in market valuation during the week. The drop in SBI’s market capitalisation weighed heavily on the overall valuation of the top-ranked companies.
Other prominent companies that also witnessed a decline in their market value include Reliance Industries, Tata Consultancy Services (TCS), ICICI Bank, Bajaj Finance, Larsen & Toubro (L&T), and Life Insurance Corporation of India (LIC). These companies collectively account for a significant share of the Indian stock market, making their performance crucial for investor confidence.
Weak Market Sentiment Impacts Large-Cap Stocks
Market experts said the decline was largely due to cautious sentiment among investors, especially during a week shortened by holidays. Trading volumes remained low, and investors preferred to stay on the sidelines rather than make fresh bets on large-cap stocks.
In addition, mixed global cues, concerns over interest rates, and uncertainty around economic growth also contributed to subdued market activity. As a result, heavyweight stocks faced selling pressure, leading to a drop in their overall market value.
Benchmark Indices Show Limited Gains
Despite losses in major stocks, the BSE benchmark index managed to end the week in positive territory. The index rose by 112.09 points, or 0.13 per cent, during the week.
However, the modest rise in the benchmark was not enough to offset the losses suffered by large companies. Analysts noted that gains were driven by select stocks, while broader participation remained weak.
Outlook for the Coming Weeks
Looking ahead, market participants are expected to closely monitor global economic developments, inflation trends, interest rate movements, and corporate earnings for further direction. Any improvement in global market sentiment could help stabilise domestic equities.
Experts believe that while short-term volatility may continue, strong fundamentals in select companies could support the market over the longer term.