Top 10 blue-chips’ share of India’s m-cap drops to lowest since 2017

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Blue chips get the blues: Top 10’s MCap share hits decade low <br> — FPIs have withdrawn above ₹3 lakh crore from Indian secondary markets since the start of 2026, with the top 10 companies accounting for nearly 60-70% of the selling.

Mumbai: India's top 10 listed blue-chips have steadily lost their share of the country's total market capitalisation, with their combined weight falling to a near-decade low led by sustained foreign portfolio investor (FPI) selling and the underperformance of large-cap stocks.

The top 10 companies accounted for around 17.65% of the total market capitalisation of all listed firms as on October 9, a level last seen in January 2017. Their combined market cap stood at ₹84.84 lakh crore, the lowest since December 2023, while the market cap of all listed companies was around ₹480.82 lakh crore till last weekend.

Heavy foreign selling has weighed on large-cap stocks.

"FPIs have withdrawn above ₹3 lakh crore from Indian secondary markets since the start of 2026, with the top 10 companies accounting for nearly 60-70% of the selling," said Rajesh Singla, CEO and fund manager, Alpha AMC. "A weaker rupee has added to the pressure."

The concentration of market value among the country's largest companies has steadily declined over the past few years. The top 10 companies accounted for around 25% of total market capitalisation at the start of 2023, falling to nearly 22% in early 2024 and 21% in January 2025. The share slipped below 20% earlier this year before declining to current levels.

At the same time, domestic flows have continued to support the broader market. As smaller companies outperformed large-cap stocks, their share as a proportion of the total market cap went up.

The combined share of small- and mid-cap companies in the total market capitalisation of listed companies rose to 20.6% and 23.1%, respectively, in September 2026, from around 18% at the start of the year 2024, according to ET calculations.

"The shift reflects changing investor perceptions about which companies and sectors are best positioned to capture India's next phase of growth," said Swagatam Biswas, head of public equities at Avendus Wealth Management.

Investors are looking beyond traditional index heavyweights towards companies benefiting from emerging opportunities, including public infrastructure, he said. "The large-cap fatigue is largely happening due to this," Biswas said.

The underperformance of several index heavyweights has contributed to the decline in the top 10 companies' share of total market capitalisation. Reliance Industries, India's largest company by market cap, has declined 26% this year. HDFC Bank and Bharti Airtel have fallen 27% and 15%, respectively, while TCS is down 32%. Larsen & Toubro has declined 11%, LIC 7% and Bajaj Finance 3%. ICICI Bank and State Bank of India have remained broadly flat, while Kotak Mahindra Bank has gained 1%.