Six of Top 10 Firms Add Rs 1 Lakh Cr in Market Cap; Airtel Leads

Six of the ten most valuable Indian companies by market capitalisation added a combined Rs 1 lakh crore in a single trading session, with Bharti Airtel and Bajaj Finance posting the largest gains, according to ETMarkets.

The rally followed a broader advance in the Nifty 50 and Sensex, driven by easing Middle East tensions. FMCG stocks also outperformed, adding to the broad buying. The broader market had been under pressure the prior week after a spike in geopolitical risk.

Airtel and Bajaj Finance led the charge. Airtel shares rose sharply, making it the top gainer in the group. Bajaj Finance followed closely. Both stocks have been on an uptrend in recent weeks, supported by strong fundamentals and sector-specific drivers.

Other major firms that contributed to the surge include HDFC Bank, Infosys, and Wipro. HDFC Bank holds an Alpha Score of 46 out of 100, labelled Mixed. Infosys scores 57, categorised as Moderate. Wipro scores 46, also Mixed. The scores reflect cautious sentiment in the technology sector, which has faced global demand headwinds.

Despite the mixed scores, the broad market rally lifted all three stocks. Infosys and Wipro advanced, and HDFC Bank also gained, contributing a significant portion to the overall market cap increase.

The combined market capitalisation of the six firms now stands at a collective Rs 80 lakh crore, ETMarkets data showed. The remaining four of the top ten saw either marginal gains or held steady.

The surge narrows the premium that the top ten stocks command over the broader market. Large-cap valuations had looked stretched after a strong run earlier this year.

The immediate catalyst was the receding geopolitical risk premium. Crude oil prices eased, which benefits net importers like India. Telecom and financials, the two sectors that led the charge, are sensitive to interest rates and input costs. A sustained decline in oil prices would support margins and earnings growth.

The next major test comes with the release of corporate earnings for the June quarter. Analysts expect modest growth. An upside surprise would extend the rally.

The Nifty 50 and Sensex both closed the session in positive territory. The indices have now recovered most of the losses from the geopolitical spike earlier this month.