What Is Market Capitalisation? Large, Mid and Small Cap Explained

Market capitalisation is the total market value of a company’s shares: the share price multiplied by the number of shares outstanding. In India, SEBI uses it to rank listed companies as large cap (top 100), mid cap (101st to 250th) and small cap (251st onwards). On AMFI’s latest list, a company needed an average market cap of about ₹1,06,346 crore to be large cap.

Key facts

How market capitalisation is calculated

1. Find the company’s current share price on NSE or BSE.
2. Find the total number of shares outstanding, from the exchange’s company page or the latest shareholding pattern.
3. Multiply the two. A company with 10 crore shares trading at ₹500 has a market capitalisation of ₹5,000 crore.

Market cap changes every trading minute because the share price does. It measures what the market is paying for the equity today, not the company’s assets, sales or profit.

Large, mid and small cap: SEBI’s definition

SEBI’s circular of 6 October 2017 defined the three bands by rank rather than by a rupee figure. That keeps the categories stable as markets rise and fall; only the cut-off values move.

Rupee thresholds such as “₹20,000 crore for large cap” still appear on many sites. SEBI’s rule does not use them, and the actual cut-offs are several times higher.

AMFI’s list and the latest cut-offs

Mutual funds must use a common list prepared by AMFI. Under the SEBI circular, AMFI ranks companies by their average full market capitalisation over six months, updates the list every six months using data to the end of June and December, and publishes it within five calendar days. If a stock is listed on more than one exchange, AMFI uses the average across exchanges.

In the June 2026 list, the largest company, Reliance Industries, had an average market cap of about ₹18.7 lakh crore. The 100 large caps made up about 60% of the combined average market cap of all 5,427 listed companies. Mid caps and small caps accounted for about 20% each.

Why market cap matters to investors

Market cap is a size label, and size tends to go with certain traits. Large caps are usually established companies with more trading volume. Smaller companies can grow faster from a low base, but their prices tend to swing more and their shares can be harder to sell in a falling market. None of this is a rule, and a company’s rank tells you nothing about whether its share is fairly priced.

The label matters most in mutual funds. Under the 2017 circular, scheme categories carry minimum allocations:

After each new AMFI list, funds have one month to rebalance their portfolios if needed. A stock that moves from mid cap to large cap can therefore see buying or selling by funds around January and July. Costs also differ between schemes; our guide to the mutual fund expense ratio explains the SEBI caps under the Mutual Funds Regulations, 2026.

Full market cap vs free-float market cap

Full market capitalisation counts every share, including those held by promoters and the government. Free-float market capitalisation counts only the shares available for trading. SEBI’s categories use full market cap. Index providers such as NSE Indices weight index stocks by free-float market cap, which is why a company with a large promoter holding can be a large cap yet carry a smaller weight in the Nifty 50.

According to NSE Indices, the Nifty 50 represented about 53.73% of the free-float market cap of NSE-listed stocks as on 30 March 2026. For the basics of how shares are traded, see our stock market basics page.

How to check a company’s market cap category

1. Open the AMFI website and go to Categorisation of Large, Mid and Small Cap Stocks.
2. Download the latest list (six months ended 30 June 2026) as PDF or Excel.
3. Search for the company name or its NSE or BSE symbol.
4. Read the last column, which gives its category under the SEBI circular of 6 October 2017.

Frequently asked questions

What is market capitalisation in simple words?

It is the total value of a company’s shares at the current price: share price multiplied by the number of shares outstanding.

How does SEBI define large cap, mid cap and small cap?

By rank on full market capitalisation: the top 100 companies are large cap, the 101st to 250th are mid cap, and the rest are small cap.

What is the market cap cut-off for large cap companies in 2026?

About ₹1,06,346 crore on AMFI’s list for the six months ended 30 June 2026, up from about ₹1,05,174 crore in the December 2025 list.

What is the mid-cap cut-off in 2026?

About ₹33,664 crore, the average market cap of the 250th company on the June 2026 list.

How often does AMFI update the list?

Every six months, using data to the end of June and December, with the list due within five calendar days.

Is a large cap stock always safer?

No. Large caps have tended to be less volatile than small caps, but any share can fall sharply. Market cap describes size, not safety or value.

Sources

• Categorization and Rationalization of Mutual Fund Schemes, 6 Oct 2017 — SEBI (checked 17 Sep 2026)
• Categorisation of Large, Mid and Small Cap Stocks — AMFI (checked 17 Sep 2026)
• Average market capitalisation, six months ended 30 June 2026 — AMFI (checked 17 Sep 2026)
• Average market capitalisation, six months ended 31 December 2025 — AMFI (checked 17 Sep 2026)
• NIFTY 50 — NSE Indices (checked 17 Sep 2026)
• Investible weight factors — NSE (checked 17 Sep 2026)