Nine of India’s ten most valuable companies lost a combined ₹2.51 lakh crore in market capitalization last week as the Sensex plunged over 2,000 points. Reliance Industries, HDFC Bank, ICICI Bank, and Bharti Airtel led the decline, while Hindustan Unilever was the lone gainer. Weak global cues and FII outflows drove the sell-off.
Key Highlights
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Massive Wealth Erosion: Nine of India’s top-10 firms lost ₹2.51 lakh crore in market value last week.
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Biggest Loser: Reliance Industries saw its valuation shrink by nearly ₹96,960 crore.
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Banking Sector Hit: HDFC Bank and ICICI Bank faced sharp declines amid investor concerns.
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Telecom Impact: Bharti Airtel also witnessed significant erosion in market cap.
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Rare Bright Spot: Hindustan Unilever bucked the trend, adding ₹12,311 crore to its valuation.
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Market Context: The Sensex fell 2,032 points (2.43%), driven by weak global cues, foreign investor outflows, rupee depreciation, and subdued corporate earnings.
Market Bloodbath Explained
Indian equity markets endured a turbulent week, with the BSE Sensex plunging by more than 2,000 points. The sell-off was broad-based, sparing only Hindustan Unilever among the top-10 most valuable firms. Analysts attributed the decline to persistent foreign institutional investor (FII) outflows, which totaled over ₹36,000 crore in January, alongside a depreciating rupee and disappointing corporate earnings.
Sectoral Impact
The banking sector bore the brunt of the downturn. HDFC Bank and ICICI Bank saw sharp declines in their market capitalization, reflecting investor anxiety over credit growth and margin pressures. Reliance Industries, India’s most valuable company, was the biggest casualty, losing nearly ₹97,000 crore in value. Telecom major Bharti Airtel also faced heavy selling, underscoring the breadth of the correction.
Global and Domestic Pressures
Market experts noted that weak global cues—including geopolitical tensions, crude oil price volatility, and concerns over global trade—added to the pressure. Domestically, the rupee’s slide to record lows and subdued earnings reports further dampened sentiment. Ajit Mishra, SVP at Religare Broking, remarked that “bears firmly controlled the market last week, with no respite for investors.”
The Lone Gainer
Amid the carnage, Hindustan Unilever Limited (HUL) stood out, adding over ₹12,000 crore to its market capitalization. Analysts suggest that defensive stocks like FMCG companies tend to attract investors during volatile periods, offering stability against broader market declines.
Outlook
While the week’s losses were severe, experts caution against panic. They emphasize that long-term fundamentals remain intact, though near-term volatility is likely to persist given global uncertainties and continued FII selling. Investors are advised to stay cautious, diversify portfolios, and focus on sectors resilient to external shocks.
Sources: The Hindu BusinessLine, Economic Times, Times of India, Religare Broking, PTI
