In a bleeding market, IT bellwether Tata Consultancy Services (TCS) once again raced past billionaire Mukesh Ambani-controlled Reliance Industries (RIL) and became the most valued Indian company with a market capitalization of Rs 7.4 lakh crore. On Monday, when the stock market has witnessed the bloodbath when Sensex crashed 5.17 per cent to 35,634.95 points, TCS's share price has fallen 6.88 per cent to Rs 1972.20. But RIL has faced a severe drop in the share price of 12.35 per cent to Rs 1113.15 followed by the huge downslide of the oil prices, which went down by around 25 per cent in the Monday trade. RIL's market value stood at Rs 7.06 lakh crore.
RIL, which became the first Indian company that crossed the Rs 10 lakh crore m-cap in November, has lost about 27 per cent of its value in the two and a half weeks. Sensex has fallen about 9 per cent in this period. The investors believe that the coronavirus outbreak and crude price fall have become a double whammy for the private oil refiner as it would affect its margins. "RIL will have to sell a portion of the refined stock at a discounted value in this quarter though they bought the crude at a high price. It's a short term effect. But in the longer run, the company will be able to benefit from the low crude prices if it continues like this," said a Mumbai-based investor.
HDFC Bank came to a close third with an m-cap of Rs 6.02 lakh crore in the pecking order. The share price of the bank has fallen by 3 per cent on Monday to Rs 1100.50 on BSE, but it was relatively lower considering the fall of the other giants in the industry.
It was in October, RIL had regained the top spot. The gap with TCS had widened by around Rs 2 lakh crore by mid-December as the performance of RIL's telecom and retail businesses were surging on higher customer additions. At the same time, TCS has been struggling in their US and European markets because of the slowdown in the financial and retail sectors. The situation hasn't changed much for TCS, but RIL has been facing higher headwinds in the recent past.
Hindustan Unilever (HUL) is the fourth most valued company in the stock market with m-cap of Rs 4.62 lakh crore. HUL has fallen 2.46 per cent to Rs 2,135 on Monday. It fell 6.86 per cent in the last two and a half weeks. Since the consumption story is still dominating the minds of investors, the stock has not witnessed sharper falls at least in this year.