The sharp fall in the stock market last week has increased the concern of investors. After two consecutive weeks of growth, the market suddenly took a U-turn and a huge decline was recorded in the value of big companies. The special thing is that out of the top-10 most valuable companies of the country, the market cap of 7 companies together decreased by more than ₹ 2 lakh crore. The biggest impact of this decline was on the IT sector, where Tata Consultancy Services (TCS) suffered the biggest blow.
TCS and Reliance suffered the most loss
According to the data, the market cap of TCS declined by about ₹66,699 crore. At the same time, Reliance Industries also suffered a big loss and its value decreased by ₹ 50,670 crore. The decline in these two giant companies affected the direction of the entire market. Apart from this, there was also a decline in the market cap of big companies like HDFC Bank, LIC, Bharti Airtel, ICICI Bank and Larsen & Toubro. It is clear from this that the weakness in the market was widespread.
What was the major reason for the decline?
According to experts, increasing geopolitical tensions globally and weak results of IT companies put pressure on the market. Especially the ongoing crisis in West Asia and the rise in crude oil prices increased the concern of investors. This had a direct impact on the stock market.
Some companies showed strength
While most companies suffered losses, companies like Hindustan Unilever, State Bank of India and Bajaj Finance registered gains amid the fall. The rise in the shares of these companies helped to stabilize the market to some extent.
What will be the trend going forward?
Experts believe that until the global situation stabilizes, the market may continue to fluctuate. Investors are being advised to remain cautious and invest wisely.
SK Sharma is a content writer who writes on news, entertainment, and lifestyle topics. She has over four years of experience and is known for conveying information in simple and clear language.
