Market capitalisation
Write the following information about any 3 companies of each 5 sectoral index
1. Market cap: Market capitalization is the aggregate valuation of the
company based on its current share price and the total number of
outstanding stocks.
• Reliance Industries – Reliance owns businesses across India
engaged in energy, petrochemicals, textiles, natural resources,
retail, and telecommunications. Reliance is one of the most
profitable companies in India. The market capitalization value of
RIL is Rs. 1,568,120.60 Crores with a current price of Rs.
2,358.00.
• Tata Consultancy Services (TCS) – TCS is the biggest IT company
in India and the second-largest Indian company by market
capitalization. TCS is now placed among the most valuable IT
services brands worldwide. The market capitalization value of TCS
is Rs. 1,397,723.55 Crores with a current price of Rs. 3,742.00.
• HDFC Bank – As of March 2020, it had a base of 1,16,971
permanent employees with 5,130 branches across 2,764 cities. It is
India’s largest private sector lender by assets and market
capitalization. It has a market capitalization value of Rs.
814,074.61 Crores with a current price of Rs. 1,459.00.
2. Small cap: A small cap is generally a company with a market
capitalization of between $300 million and $2 billion. Small-cap investors
seek to beat institutional investors by focusing on growth opportunities.
Small-cap stocks historically have outperformed large-cap stocks but are
also more volatile and riskier.
• 3i Infotech Ltd – The shares of the Indian IT firm were trading at
its YTD low of Rs 6.75 on 1 January 2021, and as on 15
December, the shares touched Rs 116.65. This signifies a jump of
over 1,400 per cent YTD 2021.
• Olectra Greentech Ltd – The company’s stock was trading at its
YTD lowest of Rs 131.90 on 1 January 2021, and as of 16
December, the share touched at its highest of Rs 910.30, registering
a jump of over 558 per cent YTD 2021.
• Brighton Group Ltd – The share of the digital marketing company
was trading at its YTD 20201 low at Rs 5.64 22 January, and it
touched its YTD high of Rs 195.20 on 16 December. This signifies
over 2,000 per cent jump.
3. Mid cap: Mid-cap companies are companies whose market cap is above
Rs 5,000 crore but less than Rs 20,000 crore. Investing in these
companies can be riskier than investing in large-cap market companies.
This is because mid-caps tend to be more volatile. On the other hand,
mid-cap companies also can turn into large-cap companies in the long
run. These companies offer a higher growth potential than do large-cap
stocks, and hence more investors are attracted to investing in such
companies.
• Tata Motors Ltd. – DVR Ordinary
Rs. 243.3
92.70 (61.55%)
Rs.12,137.96 Cr (Market Capitalization)
• Bharat Heavy Electricals Ltd.
Rs. 54.95
-16.95 (23.64%)
Rs.19,186.17 Cr (Market Capitalization)
• Indiabulls Housing Finance Ltd.
Rs.192.20
-31.35 (-14.02%)
Rs.8,905.90 Cr (Market Capital)
4. Large cap: A large-cap company has a market capitalization of over $10
billion. A mid-cap company has a market capitalization between $2
billion and $10 billion, and a small-cap company has less than $2 billion
in market capitalization.
• Reliance Industries
– $220.59 B
• TCS
– $187.43 B
• HDFC Bank
– $124.76 B
5. UC limit: Upper circuit is the upper limit/upper end of the price band of
the stock which means the price of the stock cannot be traded beyond
(read above) that stipulated upper limit on that day. An upper circuit is
the maximum price to which a stock is allowed to move upwards.
Similarly, a lower circuit is the minimum price to which a stock is
allowed to fall downwards. Most stocks start with a 20% circuit.
6. LC limit: When a stock moves sharply in either direction – whether up or
down – or reaches its maximum permissible tradeable price level for a
day, then it’s said to have hit the circuit. In case of an upward movement,
it hits the Upper Circuit, whereas in case of a fall, the stock hits the
Lower Circuit. Total 77 stocks from the S&P BSE All cap index were
locked in the lower circuit. The list includes Adani Green Energy, Nahar
Spinning Mills, JBM Auto, Kopran, Tanla Platforms, Deepak Fertilisers,
Tejas Networks and GMDC.
Name:
Description:
…