The combined market valuation of the country’s top 10 most valued companies eroded sharply by Rs 4.48 lakh crore last week, mirroring a steep fall in the equity markets amid rising global tensions and surging crude oil prices.
Banking majors State Bank of India and HDFC Bank emerged as the biggest laggards as investors reacted nervously to inflation concerns and geopolitical uncertainty.
During the week, the BSE benchmark Sensex plunged 4,354.98 points, or 5.51 per cent, while the NSE Nifty declined 1,299.35 points, or 5.31 per cent. The sell-off was triggered largely by the sustained rise in crude oil prices as tensions escalated in West Asia, particularly involving Iran, the United States and Israel.
Market analysts say the surge in global oil prices has revived concerns over inflation and fiscal stability for import-dependent economies such as India.
“The primary driver behind the market weakness was the sustained rise in crude oil prices following the escalating conflict between Iran, the United States and Israel. Brent crude surged past USD 101 per barrel, raising concerns over India’s fiscal position and inflation outlook,” Ajit Mishra, Senior Vice-President (Research) at Religare Broking Ltd, said.
Among the worst hit was State Bank of India, whose market capitalisation declined by Rs 89,306.22 crore to Rs 9,66,261.05 crore. HDFC Bank also witnessed a steep erosion, with its valuation dropping by Rs 61,715.32 crore to Rs 12,57,391.76 crore.
Also read: India taps alternative oil sources as Iran crisis deepens
Financial services firm Bajaj Finance lost Rs 59,082.49 crore in market value, while IT giant Tata Consultancy Services (TCS) saw its valuation fall by Rs 53,312.52 crore.
The market capitalisation of ICICI Bank declined by Rs 42,205.04 crore to Rs 8,97,844.78 crore, while Bharti Airtel shed Rs 38,688.78 crore to Rs 10,28,431.72 crore.
Meanwhile, India’s most valued company, Reliance Industries, saw its valuation slip by Rs 33,289.88 crore to Rs 18,68,293.17 crore.
Other companies that witnessed declines included Life Insurance Corporation of India (LIC), whose market capitalisation fell by Rs 31,245.49 crore, and Infosys, which lost Rs 24,230.96 crore in valuation. Hindustan Unilever also saw its market capitalisation drop by Rs 15,401.57 crore.
Despite the losses, Reliance Industries retained its position as the most valued domestic company, followed by HDFC Bank, Bharti Airtel, State Bank of India, ICICI Bank, TCS, Bajaj Finance, Hindustan Unilever, Infosys and LIC.
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