An Analytical Study of Market Capitalization Trends of Large-Cap, Mid-Cap, and Small-Cap Companies in India (2020–2024)

This study critically examines the market capitalization trends of India’s large-cap, mid-cap, and small-cap companies over the period 2020 to 2024. Using ANOVA analysis, it investigates whether significant differences exist in growth patterns among these segments, highlighting how external macroeconomic, sectoral, and structural factors have influenced corporate valuations. The findings reveal that large-cap companies demonstrated remarkable stability, with no significant changes in market capitalization trends over the five-year period, underscoring their role as resilient anchors in India’s equity landscape. In contrast, mid-cap companies experienced notable variability in growth rates, significantly shaped by evolving market conditions, policy interventions, and sectoral developments. Most strikingly, small-cap companies exhibited exceptional growth, heavily driven by sectoral and structural catalysts, reflecting dynamic retail investor participation, policy incentives, and industry-specific momentum. These results offer valuable insights for investors, policymakers, and market strategists regarding portfolio diversification, risk management, and targeted policy support. The study emphasizes the importance of closely monitoring sectoral shifts, strengthening corporate governance in mid- and small-cap segments, and promoting financial literacy to sustain balanced market growth. Overall, the research provides a comprehensive understanding of how India’s corporate landscape has evolved in the aftermath of global disruptions and domestic reforms, offering a roadmap for informed investment and policy decisions in the years ahead.