Smallcaps have grown up, but so has the risk
AI Summary
The evolving definition of smallcaps in India, marked by rising market cap thresholds, indicates a maturation of the segment, with stronger financial health and robust earnings growth. This shift presents retail investors with a unique opportunity to tap into emerging industries and innovative businesses that are still in their infancy. As smallcaps increasingly represent a diverse array of sectors, investors should consider the potential for substantial returns by identifying companies that may become the next market leaders.
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The rulebook for classifying Indian equities has not changed in years. The formula adopted by the Securities and Exchange Board of India and the Association of Mutual Funds in India (AMFI) is simple: the top 100 companies by market capitalization are largecaps, the next 150 are midcaps and those ranked 251 onwards are smallcaps.
Original Article
Published on Livemint
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This is a results news update from Livemint, published on 23 September 2026.
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