Lets us review the top 10 companies in India by market capitalization.
It is important to know the value of the company in which you want to invest. There are certain measures to know the value, the simplest of them is market capitalization. It is also known as market cap. Here in this article we are going to see what is Market cap and the top 10 companies in Indian stock market in terms of market capitalization.
What is Market Capitalization?
It is the market value of the company’s outstanding shares of stock. It is easy to calculate the market capitalization for any layman. If company A has a total 100 shares traded in the market and the value of that each share is Rs 10. Market Capitalization of company A will be 100*10 = Rs 1,000.
Top 10 companies in India By Market Cap
|Current Market Price (CMP)|
|1||Reliance||Refineries, telecom etc||Rs 1,361,076.19||Rs 2,111.80|
|2||TCS||Computer-Software||Rs 1,181,717.45||Rs 3,194.65|
|3||HDFC Bank||Banks-Private sector||Rs 841,000.85||Rs 1,521.70|
|4||Infosys||Computer-Software||Rs 662,287.84||Rs 1,555.00|
|5||HUL||FMCG||Rs 567,331.72||Rs 2,414.60|
|6||HDFC||Finance-Housing||Rs 458,110.57||Rs 2,536.95|
|7||ICICI Bank||Banks-Private sector||Rs 457,277.32||Rs 660.25|
|8||SBI||Banks-Public sector||Rs 383,936.79||Rs 430.20|
|9||Bajaj Finance||Finance- Leasing & Hire Purchase||Rs 347,027.74||Rs 6,126.8|
|10||Kotak Mahindra||Banks-Private sector||Rs 347,027.74||Rs 1,750.3|
Let us go through in detail for the top 10 companies in India in terms of market Capitalization
1. Reliance Industries Limited (NSE: RIL)
Reliance is the largest indian company by market cap. It has a market cap of Rs 1,361,076.19 crores as on today. Reliance Industries Limited is an Indian multinational company headquartered in Mumbai, Owned by Mukesh Ambani. It was founded by Dhirubhai Ambani, father of Mukesh Ambani.
Company has diverse businesses which includes Telecommunications, energy, petrochemicals, natural gas, retail and mass media. It is one of the leading companies in Indian stock market from the past many years. Telecommunication business of Reliance (Reliance Jio) helped them to grow and become number one company in terms of market cap in India.
2. Tata Consultancy Services (NSE: TCS)
It is the largest information technology services and consulting company according to market cap headquartered in Mumbai. Company was founded in 1968 by Tata Sons. TCS is currently in 46 countries and has a market cap of Rs 1,181,717.45 crores. TCS has the second highest market cap. TCS was the first Indian company to reach $100 billion in India.
TCS was ranked number one top employer in Europe, MEA and Asia Pacific. TCS donated $50 million to Harvard business school, the highest amount of donation received by the school in 102 years.
3. HDFC Bank (NSE: HDFCBANK)
HDFC stands for Housing Development Finance Corporation. It is the leading banking and financial services company in India. Their market cap is Rs 841,000.85 crores. Company manages the assets of the individuals as well as of corporations and also provides banking solutions.
HDFC Bank was founded in 1994. HDFC bank doesn’t sell their own home loans but they act as a distributor of HDFC Ltd.
4. Infosys (NSE: INFY)
It is the second largest Information Technology company in the country. It provides business consulting and outsourcing services, headquartered in Bangalore. Infosys has a market cap of Rs 662,287.84 crores. Infosys provides services of software development, maintenance and validation services to the different types of businesses.
Infosys was founded in 1981. Finacle is a product of Infosys which provides universal banking solutions . They provide services in 46 different countries.
5. Hindustan Unilever Limited (NSE: HINDUNILVR)
Hindustan Unilevel (HUL) is the country’s largest Fast moving Consumer Goods (FMCG) company . It’s a subsidiary of Unilever which is british multinational company. Its products include cleaning agents, personal care products, foods, beverages and many other FMCG goods.
Company was founded in 1933. It has a market cap of Rs 567,331.72 crores. HUL is currently leading in the FMCG market in India according to the Market Cap.
6. HDFC (NSE: HDFC)
HDFC is an Indian financial services company headquartered in Mumbai. It is one of the leading housing finance providers in India. They provide various types of loans and also accept fixed deposits from the investor. They are also into Asset management, venture capital and also life and general insurance. Market cap of HDFC is Rs 458,110.57 crores.
7. ICICI Bank (NSE: ICICIBANK)
ICICI stands for International Credit and Investment Corporation of India. ICICI Bank is the second largest bank in our country which provides financial services to corporates and also to the individuals, headquartered in Vadodara, Gujarat. It’s market cap is Rs 457,277.32 crores.
ICICI Bank has a total of 5,228 branches and 15,158 ATMs across the country. ICICI bank was founded in 1994.
8. State Bank of India (NSE: SBIN)
State Bank of India is India’s largest Public Sector Bank and financial services body headquartered in Mumbai. SBI ranked 221 out of fortune 500 corporations in 2020, the only Indian Bank in the list. It’s market cap is Rs 383,936.79 crores. SBI was founded in 1955. SBI has 14 regional offices and 57 Zonal offices and more than 15,000 branches in India. As of 2016 SBI has 58,541 ATMs all over the country.
9. Bajaj Finance (NSE: BAJFINANCE)
It is an indian Financial services company. They provide the service of lending, asset management, wealth management and insurance. It has a market cap of Rs 369,810.18 crores. Company has AUM of Rs 1,47,153 crores. Bajaj Finance is a subsidiary of Bajaj Finserv. It is one of the leading Non-Banking Financial Companies (NBFC) in the country. Company is headquartered in Pune. Company is currently in 2,392 locations in India.
10. Kotak Mahindra Bank
It is the 4th banking firm and 3rd largest private bank in the country in the list. Bank was founded in 2003. It is a banking and financial services company. They offer the service to both corporates and retail individuals. They offer solutions in personal finance, Investment Banking, wealth management and life insurance. It has a market cap of Rs 347,027.74 crores. Kotak Mahindra Bank has 1603 branches and 2573 ATMs across the country.
Let us go through the returns earned by the stockholders of this companies
|Company||1 year||10 years (CAGR)|
This CAGR return doesn’t include splits, bonus and dividends.
Frequently Asked Questions (FAQs)
1. Should I invest in a company which has a high market cap?
Market cap is one of the terms to measure the company’s value, but one should properly analyze all the fundamentals of the company and future prospects in order to invest in that company .
2. Can all companies mentioned above be considered as blue chip companies?
Blue Chip companies are huge companies with excellent reputations. All companies which are included in top 10 companies of India are considered as blue chip companies where their stocks can deliver moderate returns and risk is low. One who wants safety on their capital should invest in such companies after doing their own analysis.