Reliance group is considered to be the first company in India to hit 10 lakh crores market cap. With the alteration of the oil prices in the international market, Reliance group lost around 2.7 lakh crores and came down to 7.3 lakh crores market cap.
Meanwhile, TCS, which is sitting in the second slot with 7.5 lakh crores market cap, emerged as the India’s most valued company. The impact of the international fluctuations are minimal on TCS compared to Reliance.
Apart from the oil price changes, the Corona Virus too is impacting the trade of several companies in India. As TCS is a software company, the impact will be minimal compared to the Reliance group, which derives income primarily on consumer dependent products. We can expect TCS to stay in that position for a while before the oil prices pushes Reliance back into the first slot.
With Iran and few middleeast countries shutting down their connections, the oil prices are expected to get impacted for few more months.