AMFI has come out with the latest update (6-monthly) for its marketcap bucketing to identify largecap, midcaps and smallcap stocks in India for January – June 2024 period (based on data up to 31st December 2023.
To ensure that all equity schemes follow uniform definitions for defining large, mid, and small caps, the Securities and Exchanges Board of India (SEBI) has defined them as follows:
- Large-cap companies – 1st to 100th company in terms of market cap
- Mid-cap companies – 101st to 250th company in terms of market cap
- Small-cap companies – 251st company onwards in terms of market cap
This is the basic Difference Between Large Cap, Mid Cap, And Small Cap stocks. I crunched the numbers from the latest data (link). The following table summarizes it:
Here is a simpler explanation of the table above:
- The top 100 stocks, which are called largecaps, now form 64.4% of the overall marketcap of all the Indian stocks. The midcap and smallcaps have 17.8% allocation each in the overall pie.
- Interestingly, the minimum marketcap needed now to qualify as a largecap is Rs 67,018 Cr. The same figure for midcaps is Rs 21,994 Cr. So compared to just a few years back, many midcaps are now size of yesteryear largecaps!
A while back I wrote that whether it made sense for SEBI to widen definitions to increase the number of large and mid-cap stocks? May be it is an idea worth considering now given so much money (via SIP inflows) following just a few hundred stocks.
Related Reading – Difference in Largecap vs Midcap vs Smallcap