India’s stock market witnessed a dramatic slump last week, as the combined market valuation of the country’s top-10 most valued companies plummeted by ₹4,95,061 crore. Tata Consultancy Services (TCS) and Reliance Industries led the losses, reflecting a broader weakness across the equity market.
The market turmoil mirrored the steep decline in the BSE benchmark index, which dropped by 4,091.53 points (4.98%), while the Nifty saw a sharp fall of 4.77%, marking the worst weekly performance since June 2022. Investors were rattled after the US Federal Reserve revised its outlook, announcing that only two rate cuts would take place in 2025, compared to the previously anticipated four. This policy change, outlined by Fed Chair Jerome Powell, dampened global investor confidence and contributed to the market’s bearish sentiment.
Valuation Erosion in Key Firms
The largest losses were felt by TCS and Reliance Industries. TCS’s market capitalisation fell by ₹1,10,550.66 crore, dropping to ₹15,08,036.97 crore. Reliance Industries saw a loss of ₹91,140.53 crore, bringing its value down to ₹16,32,004.17 crore.
Other major companies also saw significant valuation reductions:
- HDFC Bank: Lost ₹76,448.71 crore, with its valuation now at ₹13,54,709.35 crore.
- Bharti Airtel: Declined by ₹59,055.42 crore to ₹8,98,786.98 crore.
- State Bank of India (SBI): Shed ₹43,909.13 crore, now valued at ₹7,25,125.38 crore.
- ICICI Bank: Lost ₹41,857.33 crore, bringing its valuation to ₹9,07,449.04 crore.
- Infosys: Saw a drop of ₹32,300.2 crore, leaving its market value at ₹7,98,086.90 crore.
- Life Insurance Corporation (LIC): Declined by ₹20,050.25 crore, now at ₹5,69,819.04 crore.
- Hindustan Unilever: Lost ₹12,805.27 crore, reducing its valuation to ₹5,48,617.81 crore.
- ITC: Fell by ₹6,943.5 crore, bringing its valuation to ₹5,81,252.32 crore.
Reliance Remains on Top
Despite the significant losses, Reliance Industries retained its position as the most valuable company in India, followed by TCS, HDFC Bank, ICICI Bank, Bharti Airtel, Infosys, SBI, ITC, LIC, and Hindustan Unilever in the rankings.
The sharp erosion in market valuations highlights the ongoing volatility in the Indian equity market, exacerbated by global economic policy shifts and the Fed’s recent stance. As investors await clarity on the broader economic outlook, the impact on India’s blue-chip stocks underscores the need for caution in the face of uncertain global conditions.
