India’s stock market hierarchy is undergoing a quiet but significant shift. Largecaps, long seen as the core of institutional portfolios, are losing their share of the market even as mid- and smallcap companies expand their footprint. The combined market capitalisation share of mid- and smallcaps reached a record 43.7% in September, while the share of the top 100 companies fell to a low of 56.3%, according to data from Motilal Oswal Financial Services.
The shift has been accompanied by a sharp performance gap. In the first half of FY27, the Nifty50 rose just 1.3%, while the Nifty Smallcap 250 gained 24.6%, according to Prateek Nigudkar, senior fund manager at Shriram AMC.
