The coveted club of companies with a market capitalisation of more than Rs. 1 trillion fell sharply last month. After a sharp drop of 13% in the benchmark indexes on Monday, there are only 18 companies registered in the club. The 20th. In February – just before the sales caused by the coronaviruses started – there were 30 companies with a cap of at least Rs.1 trillion.
Several blue chip companies such as Axis Bank, Wipro, ONGC, Bajajaj Finserv and Titan were delisted after an unprecedented price drop. If the market continues to decline, the list could shrink further as companies like Larsen and Toubro (L&T) hang from the skin of their teeth by 1 trillion rupees in a millimeter hat.
On Monday, total sales of India Inc. decreased by 14.2 trillion rupees to 102 trillion rupees. After a peak of almost 59 trillion rupees, the Indian cape m was in 17th place. January at 161 trillion rupees.
It goes without saying that most of the depreciation took place in the most valuable Indian companies. For example, Reliance Industries alone, led by Mukesh Ambani, lost Rs. 3.8 trillion in M-CLB, followed by HDFC Bank, which lost Rs. 2.45 trillion, and Tata Advisory Services (TCS), which lost Rs. 1.85 trillion with Rs. 6.24 trillion, making it the most valuable in India.
At the moment RIL is worth Rs 5.6 trillion, making it the second most valuable. In November 2019 alone, RIL was the first Indian company to reach Rs 10 trillion in market value.
The Bankas, which had a rating of Rs. 2 trillion a month ago, is now valued at Rs. 87 trillion. The private creditor was the last to leave the club after a 28% fall in the share price.
A further 2% contraction of the market will bring India’s total m-cap below Rs.100 trillion. India crossed the line for the first time in November 2016. It is interesting to note that it took five years for India to go from Rs.100 trillion to Rs.160 trillion. But the turnaround only took two months. Given the speed of the last correction, many experts have described the current market shocks as the worst.
Experts believe that the recovery could be abrupt as a result of the economic shocks caused by the pandemic.
Indian markets were most affected as the coronavirus pandemic spread rapidly and led to the blockade of large states, including the capital. There is growing concern that this epidemic is causing a global economic collapse. The OECD warned that it would take years for the world to recover from the pandemic, said Deepak Jasani, head of retail research at HDFC Securities.