Market cap, explained
Market capitalisation is a company’s total market value — its share price times the number of shares outstanding. A ₹500 share with 10 crore shares has a ₹5,000 crore market cap. It, not the share price alone, tells you how “big” a company is.
The cap categories
By market cap, Indian companies are grouped into large cap (top 100), mid cap (101–250) and small cap (251+). Each has a different risk-return profile — see our large vs mid vs small cap guide.
Why it matters
Market cap guides how risky and liquid a stock tends to be, and how to build a balanced portfolio across sizes. It’s also why a ₹100 stock isn’t “cheaper” than a ₹2,000 stock — only the market cap and valuation tell you that.
Frequently asked questions
How is market capitalisation calculated?
Market cap = share price × total number of shares outstanding. It represents the company’s total market value.
Is a lower-priced stock cheaper?
Not necessarily. A low share price doesn’t mean a stock is cheap — market cap and valuation ratios like P/E tell you whether it’s expensive or not.
What are large, mid and small caps?
By market cap, large caps are the top 100 companies, mid caps rank 101–250 and small caps are 251 and below, each with a different risk-return profile.