The combined market capitalisation of six out of ten companies increased by Rs 1.18 lakh crore in last week's trading. Among them, HDFC Bank saw the highest gain, with its market cap rising by Rs 32,639 crore to reach Rs 13.25 lakh crore. Meanwhile, Bharti Airtel’s market cap grew by Rs 31,003 crore to Rs 9.56 lakh crore, and Bajaj Finance’s market cap increased by Rs 29,032 crore to Rs 5.24 lakh crore. Infosys' market cap rose by Rs 21,114 crore to Rs 7.90 lakh crore. Additionally, the market cap of Reliance Industries and ICICI Bank also increased. On the other hand, the market value of four companies—ITC, Hindustan Unilever, SBI, and TCS—declined by Rs 1.15 lakh crore. Last week Sensex increased by 1,043 points Last week, the Sensex rose by 1,043.47 points (1.36%), while the Nifty gained 225.05 points (0.96%). However, on Friday, February 7, the Sensex closed at 77,860, down 197 points, while the Nifty declined by 43 points to close at 23,559. What is market capitalisation? Market capitalisation (market cap) represents the total value of a company's outstanding shares, which are the shares currently held by its shareholders. It is determined by multiplying the total number of issued shares by the stock's current price. Market cap = Number of outstanding shares × stock price Investors use market cap to classify companies into categories such as large-cap, mid-cap, and small-cap, helping them assess risk and investment potential. How is market cap used? Several factors influence whether a company will profit from its shares, one of which is market capitalisation. Investors assess a company's size by examining its market cap. Generally, a higher market cap indicates greater financial stability. Stock prices fluctuate based on supply and demand, making market cap a reflection of the company's perceived value in the public market. How does market cap increase or decrease? The market cap formula clearly shows that it is calculated by multiplying the total number of shares issued by the company with the stock price. This means that if the share price rises, the market cap increases, and if the share price falls, the market cap decreases.Original Article