Top 25 companies in India by Market capitalization

Market capitalization means the aggregate value of the company based on its current market price and the total number of outstanding shares.

Mathematically its calculated by using following formula;

Market capitalization = (Current market price of the share)*(total number of outstanding shares)

Now the question is “why is market capitalization so important?”

There can be many reasons why we classify a company based on its market capitalization. Here are few most important reasons why it’s so important;

• It helps us to classify a company into large-cap, mid-cap and small-cap categories of stocks. Large cap companies are considered to be matured, less riskier and less volatile at the time of  uncertainties in comparison to mid-cap and small-cap stocks. Intraday traders prefer to trade in large-cap stocks due to its liquidity factor. However, value investors look at opportunities in most of the mid-cap and small-cap stocks as they might turn into large-cap stocks in future.
• Comparison based on market capitalization helps us to know which one is bigger in size irrespective of its current market price.
• A country’s total market capitalization is a factor in order to determine which country is ranked higher in the world in terms of its listed company’s market capitalization. 

Here is the list of top 25 companies in India by Market capitalization as on 01/07/2022.

As discussed above, market capitalization is calculated based on the current market price of the share. As the current market price changes every day, in order to know which Indian company has the highest market capitalization on a particular day or by the end of the day, you need to take the current market price and multiply it to the total number of outstanding shares to get the current market cap.

Based on how stocks of a company traded in the market, ranking based on market cap changes. 

For example, if a stock is not performing well in the market for some time, its current market price will be down for  a moment in comparison to a stock which is performing well in the market. In this type of situation, ranks based on market capitalization might change based on changes in market price of the underlying stock.

At present Reliance Industries limited is the number one Indian company by its market capitalization. It’s also a Fortune 500 company and the largest private sector company in India. This rank might change based on how stock of the Reliance industries and others like TCS and HDFC Bank performs in the market.

Finding each day’s market capitalization in order to know which company ranked in the list is very complicated. Now the question is how can we easily know the rank of all the top companies in India by their market capitalization on a particular day.

We have the following three alternatives for you. These are trusted sites and they update their data regularly to get the current market capitalization of any Indian stock. 

• Moneycontrol.com
• Etmoney.com
• In.investing.com

Disclaimer: In addition to the disclaimer below, please note, this article is not intended to provide investing or trading advice. This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Trading in the stock market and in other securities entails varying degrees of risk, and can result in loss of capital. Most investors and traders lose money. Readers seeking to engage in trading and/or investing should seek out extensive education on the topic and help of professionals.