Market cap of nine of 10 most valued firms jumps Rs 2.34 lakh crore last week

The market capitalization of nine of the ten most valued Indian companies increased by Rs 2.34 lakh crore ($31.3 billion) last week, thanks to strong buying interest in the stock market. The surge in market capitalization comes after a brief lull in January, when stocks saw a correction due to concerns over rising inflation and interest rates.

According to data from the National Stock Exchange (NSE), the total market capitalization of the nine firms rose from Rs 39.70 lakh crore ($529.2 billion) on January 28 to Rs 42.04 lakh crore ($560.5 billion) on February 4. Reliance Industries, TCS, HDFC Bank, Infosys, HDFC, ICICI Bank, Kotak Mahindra Bank, Bajaj Finance, and Bharti Airtel were the nine companies that saw an increase in market capitalization.

Reliance Industries, owned by Mukesh Ambani, saw the highest increase in market capitalization, with its valuation rising by Rs 61,170.22 crore ($8.2 billion) to Rs 15.44 lakh crore ($206.1 billion). This was followed by TCS, which saw its market capitalization rise by Rs 41,406.95 crore ($5.5 billion) to Rs 12.98 lakh crore ($173.3 billion).

HDFC Bank saw its market capitalization increase by Rs 26,576.44 crore ($3.5 billion) to Rs 9.89 lakh crore ($131.9 billion), while Infosys saw its valuation rise by Rs 25,156.58 crore ($3.3 billion) to Rs 7.73 lakh crore ($103.1 billion). HDFC, ICICI Bank, Kotak Mahindra Bank, Bajaj Finance, and Bharti Airtel also saw significant increases in their market capitalization during the week.

The surge in market capitalization came amid strong buying interest in the stock market, with investors flocking to stocks that are likely to benefit from the ongoing economic recovery. The NSE Nifty 50 index rose by 3.7% during the week, while the benchmark BSE Sensex index gained 3.8%.

Analysts attributed the surge in market capitalization to a number of factors, including positive global cues, expectations of strong earnings growth, and an overall improvement in investor sentiment. They also noted that the rally was led by heavyweight stocks like Reliance Industries and TCS, which account for a significant portion of the market capitalization of the Indian stock market.

The surge in market capitalization is likely to be welcomed by investors, who have been hit hard by the recent correction in the stock market. However, some analysts warn that the rally may not be sustainable, given the ongoing uncertainty surrounding the COVID-19 pandemic and the potential for rising inflation and interest rates.

They also note that the surge in market capitalization has been uneven, with only a handful of stocks accounting for the majority of the gains. This suggests that the rally may be driven more by speculation than by fundamentals, and that investors need to be cautious when investing in the Indian stock market.

Despite these concerns, many analysts remain bullish on the Indian stock market, citing the country's strong economic fundamentals and the potential for continued growth in the long term. They note that India remains one of the fastest-growing economies in the world, with a young and rapidly expanding population, a growing middle class, and a large and dynamic business sector.

Overall, the surge in market capitalization is likely to be seen as a positive sign for the Indian economy, as it suggests that investors remain confident about the country's growth prospects. However, investors need to be aware of the risks involved in investing in the stock market,