The market share of blue chips and large caps has declined over the past six years, with mid-, small- and micro-caps gaining ground in this period. The benchmark Nifty's share of the total market capitalisation of the NSE-listed companies fell 3.3 percentage points in Q1 to a 'multi-year low' of 40.5% in June, from 44.9% in March 2025 and 58.8% in March 2020, according to the report. The Nifty Next 50's share declined to 15.7% from 16.4% in March 2025 and 18% in 2024.The Nifty Midcap 150 accounted for 21.4% of the total market capitalisation from 19% in 2025 and 14.9% in 2020. The Nifty Smallcap 250's share rose to a 'multi-year high' of 10.7% from 9.8% in March 2025 and 5.7% in 2020, while the Nifty Microcap 250 accounted for 4.4% of the total market capitalisation from 3.6% in 2025 and 1.5% in 2020, also near a 'multi-year high', underscoring the increasing weight of smaller stocks in the broader market.
Smaller stocks gain ground as largecaps lose market share
Large-cap stocks have seen their market share decline over six years. Mid, small, and micro-cap stocks have gained significant ground during this period. The Nifty's share of total market capitalization fell to a multi-year low. Meanwhile, the Nifty Smallcap 250 reached a multi-year high. This trend highlights the increasing weight of smaller companies in the market.
TL;DRAI
India's Nifty fell to 40.5% market share from 58.8% in 2020; smallcaps surged to 10.7% from 5.7%, marking six-year rotation from mega-cap concentration. Portfolio managers must rebalance risk exposure as valuations realign across market tiers.
161 words~1 min read
