Smaller stocks gain ground as largecaps lose market share

ET BureauLast Updated: Jul 24, 2026, 06:49:00 AM IST

Synopsis

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.

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.

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