| Stock Category | Market Capitalization Range | Description |
|---|---|---|
| Large-Cap Stocks | ₹20,000 crore (₹200 billion) and above | These are well-established companies with a large market share and stable revenues. Typically include blue-chip companies. |
| Mid-Cap Stocks | ₹5,000 crore to ₹20,000 crore | These are medium-sized companies that are growing and have the potential to become large caps. They carry more risk than large-caps but also have growth potential. |
| Small-Cap Stocks | ₹500 crore to ₹5,000 crore | These companies are smaller in size and more volatile but may offer higher growth potential. They are more sensitive to economic conditions. |
| Micro-Cap Stocks | Below ₹500 crore | Very small companies with higher volatility and risk. They can offer significant returns but are more speculative in nature. |
| Mega-Cap Stocks | ₹1,00,000 crore (₹1 trillion) and above | These are the largest companies by market capitalization, such as global conglomerates. In India, companies like Reliance and TCS are examples. |
| Nano-Cap Stocks | Usually below ₹100 crore | Extremely small companies with low liquidity. These stocks are highly speculative and are not widely traded. |
Key Insights:
- Large-Cap Stocks: These are considered low-risk, stable investments and typically include the top 100 companies by market capitalization. Large caps tend to perform steadily and are less volatile.
- Mid-Cap Stocks: Mid-cap stocks offer a balance between growth and risk. They are smaller than large caps but often have strong growth potential and can provide better returns during bullish markets.
- Small-Cap Stocks: These are higher-risk, higher-reward investments. They can grow rapidly but are more volatile and may underperform during economic downturns.
- Mega-Cap Stocks: Mega-cap stocks are industry leaders, often having a market capitalization above ₹1 trillion. They are globally recognized and usually dominate their industries.
- Micro-Cap and Nano-Cap Stocks: These stocks are highly speculative and can be risky investments. They often have low liquidity and may not be widely covered by analysts.
This classification helps investors assess the risk-return profile of their investments, with large-cap stocks generally being safer and smaller-cap stocks offering more growth potential but higher volatility.