The heavy decline in the market has reduced the number of companies with $ 1 billion or more market capitalization (MCAP). In the last five months, the number of companies with billion dollars capped has decreased by about 20 per cent. On September 26 last year, when the market was at the highest level, 618 companies were involved in the Arabian dollar CAP Jamaat. But now the number of such companies has come down to 500.
This has happened due to continuous selling of foreign portfolio investors by more than $ 1 lakh crore in market capitalization. In terms of market capitalization, the market capitalization of companies occupied at the top has decreased more. The number of companies with $ 100 billion or excellent mump has come down from 5 to 4.
Similarly, the number of companies with mcked companies from $ 10 billion to $ 100 billion has decreased by 28 per cent and their number declined from 122 to 87. Companies out of the group of $ 1 billion are NHPC, Godrej Properties, Oil India, Torrent Power and Marico.
The number of companies ranging from $ 1 billion to $ 10 billion has declined by 16 per cent. The market capitalization of Raymonds, TTK Prests, Idlevice Finain Shree Services, Kirloskar Oil Engines and Engineers India has been less than the billion dollars.
The stock market is witnessing a decline in the stock market due to high evaluation of shares, softening of profits of companies and frequent selling of foreign portfolio investors.
Chokalingam Ji, founder of E Quinomics, said, “The stock market has reduced the number of billion dollars with companies with billions of companies due to the ongoing decline for the last few days and declining the total market capitalization of listed companies. However, there is a sharp decline in market capitalization and suddenly. Companies who have a greater difference between income growth and price-to-earning multiple have been hit the most. Some shares benefit when the market increases. Investors want to maintain these shares rather than selling at the time of the decline. However, even good shares are not untouched by the pressure of all -round selling.
Foreign portfolio investors are making their investment from India and putting them in the Chinese market. The Chinese government has taken incentive measures to speed up the economy, which is also seen on the stock market, which is enticing investors.
Apart from this, a change in trade policy has increased in the US since Donald Trump became President in the US and the dollar has also strengthened. Due to all these reasons, foreign investors are decreasing their investment from emerging markets like India. The investors were more nervous due to Trump’s charge on other countries products and the selling increased due to exit from risky assets.
The Nifty has fallen by 15.8 per cent from its all -time highest level of September 26, 2024 and the total market capitalization has decreased by Rs 93 lakh crore. The shares that have reduced the prices will depend on the company’s fantamental and the widespread rise in the market. Independent equity analyst Ambareesh Baliga said, “The hopes of profits of companies were skyrocketing in the fast era, but the shares have come down drastically due to not being favorable. Companies are expected to improve the market only after expectation, reduction in interest rates, improvement in large economic indicators or stability in trade policy. This is the right time for investors to review their portfolio and remove the shares of poor performances. He said that when the market improves, quality shares will compensate for their losses.
First Published – March 5, 2025 | 7:03 am IST
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