Definition of Large-cap, Mid-cap, and Small-cap
This page explains how companies listed on the NSE are classified by full market capitalization ranks into Large, Mid, and Small caps — in plain, practical terms.
Quick Definitions (by Rank)
Per your rule-of-thumb based on market-cap ranks:
| Category | Rank by Full Market Capitalization | Plain-English Meaning |
|---|---|---|
| Large Cap | 1–100 | Top 100 biggest listed companies. |
| Mid Cap | 101–250 | Next 150 companies after the top 100. |
| Small Cap | 251+ | All companies ranked 251 and beyond. |
Example: Reliance Industries, being among the top in market capitalization, falls into the Large Cap bucket.
Why the Classification Matters
- Risk/Return: Large caps tend to be steadier; small caps can be more volatile with higher potential upside.
- Liquidity: Generally higher in large caps, lower in small caps.
- Allocation: Helps investors structure core (large-cap) and satellite (mid/small-cap) portfolios.
Simple Takeaways
Large Cap
Leaders with strong balance sheets; anchor positions for long-term portfolios.
Mid Cap
Growing franchises with room to scale; moderate risk/return.
Small Cap
Wider opportunity set but higher volatility; position size wisely.
Bottom Line
Use ranks as a practical guide to diversify by size. Anchor with large caps; use mid and small caps to add growth — aligned with your risk tolerance.