Market Cap of top 6 listed companies jumps ₹2 lakh crore; TCS, HDFC Bank lead the rally

The combined market valuation of six out of the top 10 most-valued Indian companies soared by ₹2,03,116.81 crore last week, reflecting an optimistic sentiment on Dalal Street. Tata Consultancy Services (TCS) and HDFC Bank emerged as the biggest gainers, riding the wave of a bullish trend that saw the BSE Sensex climbing 1,906.33 points (2.38 per cent) and the NSE Nifty 50 advancing 546.7 points (2.26 per cent).

Top gainers

Among the gainers, TCS led the charge with its market capitalisation increasing by ₹62,574.82 crore, taking the company’s total valuation to ₹16,08,782.61 crore. HDFC Bank followed closely, adding ₹45,338.17 crore to its valuation, which now stands at ₹14,19,270.28 crore. Reliance Industries also recorded significant growth, with its market value rising by ₹26,185.14 crore to reach ₹17,75,176.68 crore, solidifying its position as the most valuable company in India.

Infosys saw its market capitalisation jump by ₹26,885.8 crore, bringing its valuation to ₹7,98,560.13 crore. State Bank of India (SBI) posted a gain of ₹22,311.55 crore, pushing its valuation to ₹7,71,087.17 crore, while ICICI Bank added ₹19,821.33 crore, taking its total market value to ₹9,37,545.57 crore.

However, not all companies in the top 10 performed positively. Bharti Airtel’s valuation declined by ₹16,720.1 crore, bringing its total market cap to ₹9,10,005.80 crore. ITC saw a drop of ₹7,256.27 crore, ending the week at ₹5,89,572.01 crore. Hindustan Unilever and LIC also saw minor declines, losing ₹2,843.01 crore and ₹1,265 crore, respectively.

Reliance Industries maintained its top position as the most valuable firm, followed by TCS, HDFC Bank, ICICI Bank, and Bharti Airtel. Infosys, SBI, LIC, ITC, and Hindustan Unilever rounded out the top 10 list.

On Friday, the benchmark BSE Sensex edged down by 0.07% to close at 81,709.12, while the broader NSE Nifty 50 slipped 0.12% to settle at 24,677.8. This movement came after the Reserve Bank of India (RBI) announced a reduction in the cash reserve ratio (CRR) to improve liquidity but chose to keep interest rates unchanged.

Meanwhile, the Indian rupee saw a marginal gain of 0.05% against the U.S. dollar, closing at 84.6875. The rupee’s rise was supported by a weaker dollar and the RBI’s decision to lower the CRR, which helped ease monetary conditions amidst concerns over slowing economic growth.

Stock Market Outlook

For the week ahead, the Indian stock market direction will be influenced by the release of US payroll and US CPI inflation data, which will give some insights into the US Federal Reserve’s December meeting, analysts said.

On the technical front, Nifty 50 formed a small red candle on the daily chart on December 6 with minor upper and lower shadow – a kind of breather after five days of gains. 

“The weekly charts indicate that the index has formed a long bullish candle and is maintaining a higher bottom formation. Notably, it has successfully closed above the 50-day Simple Moving Average. We believe that the market texture is bullish; however, due to temporary overbought conditions, we could see range-bound activity in the near future. Therefore, the ideal strategy for short-term traders would be to buy on dips and sell on rallies,’ said Amol Athawale, VP- Technical Research, Kotak Securities.

For traders, he believes key support levels for Nifty 50 and Sensex would be 24,500 / 81,200 and 24,300 / 80,700, while resistance is expected to be between 24,900 / 82,200 and 25,050 / 82,500. However, below 24,300 / 80,700, he suggests traders may prefer to exit out from the trading long positions.

For the Bank Nifty, as long as it is trading above 52,500, the uptrend is likely to continue. On the upper side, it could move up to 54,000 – 54,300, Athawale added.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.