Kerala-based companies listed on the stock market collectively lost more than ₹13,000 crore in market capitalisation last week following the market turmoil after the 50 per cent punitive tariffs imposed by US President Donald Trump came into effect.
According to data compiled from the National Stock Exchange (NSE) for the period from August 25 to August 29, the top nine companies from the state accounted for a combined loss of ₹12,943 crore in market value. This decline reflects a broader bearish trend in the stock market during the week, with the benchmark BSE Sensex falling by 1,497.2 points, or 1.84 per cent, and NSE Nifty by 522 points, or almost 2 per cent.
Among the biggest losers was Muthoot Finance, the largest company in Kerala by market capitalisation, whose value declined by ₹2,243 crore. This followed a stock price decrease of around 2.5 per cent from the start of the week. The current market value of the company stands at ₹1.05 lakh crore, down from ₹1.08 lakh crore on August 25.
The second largest decline was seen in Fertilisers and Chemicals Travancore (FACT), whose market capitalisation dropped by ₹5,888 crore to ₹59,848 crore. The chemical maker’s stock price declined by 9.77 per cent during the week and closed at ₹924, as the fertiliser and chemical market is expected to be hit the hardest by the US tariffs.
The additional 25 per cent tariff imposed on India came into effect on August 27, adding to the 25 per cent tariff introduced on August 7, bringing the total levy on Indian exports to the US to 50 per cent. The Trump administration increased these tariffs as a punitive measure aimed at pressuring New Delhi to stop purchasing oil from Russia.
Sectors expected to be affected include marine, chemicals, furniture, and gems and jewellery. However, the textile industry is anticipated to bear the greatest impact, as competitors such as Bangladesh and Vietnam benefit from lower tariffs compared to India.
As a result, shares of Kitex Garments fell by 5.82 per cent last week, closing at ₹178. Its market capitalisation declined by ₹196 crore, dropping to ₹3,552 crore from ₹3,748 crore on August 25.
The third-largest Kerala-based company by market cap, Kalyan Jewellers, lost ₹722 crore in value, bringing its market capitalisation down to ₹52,023 crore. Cochin Shipyard was another major loser, with its market capitalisation eroding by ₹1,980 crore to ₹42,309 crore.
Among the financial and banking companies from the state, Federal Bank saw a decline of ₹828 crore in market value, bringing it down to ₹47,105 crore. Its shares closed at ₹191.71 after a drop of 3.05 per cent. CSB Bank recorded a loss of ₹404 crore, reducing its market value to ₹6,291 crore, while Dhanlaxmi Bank saw a decline of ₹51 crore. Manappuram Finance also faced a setback, losing ₹631 crore in value, with its current market capitalisation standing at ₹22,130 crore.
The broader market downturn also impacted India’s top companies, with eight of the ten most valued firms collectively losing ₹2,24,630.45 crore in market capitalisation. Reliance Industries and HDFC Bank were among the hardest hit, with a loss of ₹70,707 crore and ₹47,482 crore, respectively.
The decline was more pronounced in top companies with Bharti Airtel, ICICI Bank, State Bank of India, Infosys, Bajaj Finance, and Life Insurance Corporation of India (LIC) seeing a sharp dip in their market valuations. In contrast, Tata Consultancy Services (TCS) and Hindustan Unilever emerged as the only gainers during the week.
However, by the end of the week, Reliance Industries remained the most valued firm, followed by HDFC Bank, TCS, Bharti Airtel, ICICI Bank, State Bank of India, Hindustan Unilever, Infosys, Bajaj Finance and LIC.