The recent market volatility has eroded investors wealth worth Rs 4.14 lakh crores since 31 Jan 2018. BSE Sensex declined in six of the last eight trading till 12 February 2018. It also lost over 1748 points since the Budget on February 1. The reasons for the volatility include proposal to tax long-term capital gains (LTCG) and rising US bond yields that created global turbulence. India's top 10 largest companies in terms of market cap have lost over Rs 1.8 lakh crores of investors wealth since 31 Jan 2018. HDFC Bank lost the most in terms of market value among the top 10 biggest companies followed by Reliance Industries and TCS. ITC suffered the least. Let us look at how much market value these largest companies have lost since the budget 2018:
Reliance Industries lost over Rs 29,400 crores in market cap. The market cap went down from Rs 6.08 lakh crores on 31 January 2018 to Rs 5.79 lakh crores on 12 February 2018. Its share price declined by over 4.8% in the last 8 trading days. The company reported top line and bottom line growth of 21.7 per cent and 23.8 per cent respectively in Q3FY18.
TCS lost over 27,500 crores of market cap since the budget day opening. Its market cap went down from Rs 5.96 lakh crores to Rs 5.68 lakh crores. The stock lost 4.6 per cent. The company's top line grew by 3.93 per cent and its bottom-line declined by -3.95 per cent in Q3FY18.
HDFC Bank eroded investors' wealth of Rs 33,645 crores with its market cap down from Rs 5.2 lakh crores on budget day opening to Rs 4.86 lakh crores on 12 February 2018. The stock price lost 6.5 per cent. Bank's total income grew by 17.84 per cent in Q3FY18. Its net NPAs stood at 0.44 per cent compared to 0.32 per cent in Q3FY17.
ITC lost the least in market value among the top 10 biggest companies. The market cap declined by 1707 crores. The stock price lost marginally by 0.5 per cent. The company reported decline in top line growth by over 26 per cent. However, helped by substantial decline in total expenditure, the bottom line grew by over 16 per cent in Q3FY18.
Hindustan Unilever lost over Rs 5000 crores in market cap. The market value went down from Rs 2.96 lakh crores to Rs 2.91 lakh crores. Stock price declined by 1.7 per cent. Company's net sales and other operating income grew by 3.3 per cent in Q3FY18. It reported a healthy bottom line growth of 27.7 per cent helped by substantial jump in other income and reduction in tax outgo.
HDFC lost over Rs 23,900 crores in market value. Its market cap went down from Rs 3.12 lakh crores to Rs 2.88 lakh crores with over 7.7 per cent decline in share price. The company reported substantial jump in net profit at 233 per cent in Q3FY18 helped by one time gain due to stake sale in HDFC Life Insurance.
Maruti Suzuki lost over Rs 12300 crores in market value. Its market cap went down from Rs 2.87 lakh crores on 31 January 2018 to Rs 2.75 lakh crores on 12 February 2018. The stock price declined by 4.3 per cent. It reported an operating profit growth and net profit growth of 6.4 per cent and 2.96 per cent respectively in Q3FY18.
SBI lost Rs 20,932 crores in market cap with 7.8 per cent decline in stock price. The bank suffered a net loss of Rs 2,416 crores in Q3FY18 due to surge in provisions for bad loans. Its Gross NPAs surged to 10.35 per cent in Q3FY18 compared to 7.23 per cent in Q3FY17.
ONGC lost over Rs 16,000 crores in market value with its market value declining from Rs 2.61 lakh crores to Rs 2.45 lakh crores in the last eight trading days. The stock price lost 6.15 per cent. Company's net sales and operating income grew by 14.9 per cent and reported a 15.22 per cent increase in net profit in Q3FY18.
Infosys lost over Rs 10,200 crores in market value. Its market cap went down from Rs 2.51 lakh crores on 31 Jan 2018 to Rs 2.41 lakh crores on 12 February 2018. The stock price declined by 4.1 per cent. In Q3FY18, its top line and bottom line grew by 3 per cent and 38.3 per cent respectively.