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Published: October 22, 2024
Updated: October 22, 2024

Market Woes: Top Companies Lose Over Rs 2 Trillion in Market Value Amid Q2 Earnings Struggles

BSE Benchmark Tumbles Over 1,800 Points

Indian equity markets saw significant losses last week as nine of the top ten most valued companies witnessed a steep decline in market capitalization, shedding a cumulative Rs 2.09 trillion. This downturn follows a rough week for the Bombay Stock Exchange (BSE) benchmark, which dropped by 1,822.46 points or 2.24%, largely due to weaker-than-expected Q2 earnings and relentless foreign institutional investor (FII) selling, which has continued to weigh heavily on investor sentiment.

Major Companies Take a Hit

Among the top-10 valued companies, Hindustan Unilever and Reliance Industries were the hardest hit. Hindustan Unilever’s market value decreased by Rs 44,195.81 crore, bringing its total valuation to Rs 5,93,870.94 crore, while Reliance Industries’ valuation plummeted by Rs 41,994.54 crore, settling at Rs 17,96,726.60 crore. State Bank of India (SBI) also faced a major blow, with its market capitalization dropping by Rs 35,117.72 crore to Rs 6,96,655.84 crore.

IT and Telecom Giants Experience Declines

Telecom major Bharti Airtel and IT services powerhouse Tata Consultancy Services (TCS) were not spared either. Bharti Airtel's market value dropped by Rs 24,108.72 crore, now standing at Rs 9,47,598.89 crore. Similarly, TCS saw its valuation shrink by Rs 23,137.67 crore, bringing it to Rs 14,68,183.73 crore. These declines highlight the broad impact of the current market conditions across various sectors.

LIC, Infosys, and ITC Also Impacted

The market capitalization of the Life Insurance Corporation of India (LIC) eroded by Rs 19,797.24 crore, leaving it at Rs 5,71,621.67 crore. Infosys followed with a valuation loss of Rs 10,629.49 crore, now totaling Rs 7,69,496.61 crore. Meanwhile, FMCG giant ITC and ICICI Bank saw their valuations decrease by Rs 5,690.96 crore and Rs 5,280.11 crore respectively, further underscoring the market’s broad-based weakness.

HDFC Bank: The Lone Survivor

While most companies saw significant declines, HDFC Bank emerged as the sole winner of the week, gaining Rs 46,891.13 crore in market capitalization, boosting its value to Rs 13,29,739.43 crore. This resilience sets HDFC Bank apart from its peers, underscoring its position as a preferred choice for investors even during volatile periods.

Reliance Industries Leads Despite Challenges

Despite these losses, Reliance Industries remains the most valuable company, followed by TCS, HDFC Bank, and Bharti Airtel. These firms continue to hold their positions as market leaders, even as volatility impacts their valuations. The substantial market value decline for nine of the top ten companies reflects ongoing investor concerns surrounding Q2 earnings and FII outflows. HDFC Bank's gain amidst widespread losses showcases its relative stability, while Reliance Industries, despite setbacks, retains its position at the top. These dynamics suggest that while the market remains under pressure, select companies may still offer opportunities for resilience.