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

A blue-chip company is generally a large, established business with a strong market presence and high investor recognition. The term is not formally defined in the article, but it commonly describes companies viewed as leading or dependable stocks. The top 10 companies are called blue-chips because they are India’s largest listed firms by market capitalisation.

Their scale gives them an outsized influence on the stock market. Together, they were worth ₹84.84 lakh crore on October 9. The group included major names such as Reliance Industries, HDFC Bank, Bharti Airtel, TCS, LIC and ICICI Bank. These companies are also prominent index constituents and traditional market heavyweights.

However, blue-chip status has not protected the group from recent weakness. Several members underperformed while smaller companies advanced. As a result, the top 10’s share of total market value fell to 17.65%, its lowest level since January 2017. This shows that market leadership can broaden beyond established giants.

The top 10 group represented around 17.65% of the total market capitalisation of all listed Indian companies as of October 9. Their combined value was ₹84.84 lakh crore, compared with roughly ₹480.82 lakh crore for the entire listed market. This means the market’s value is now spread more widely beyond its biggest companies.

The decline has been gradual but substantial. The top 10 accounted for about 25% of total market value at the start of 2023. That share fell to nearly 22% in early 2024 and 21% in January 2025. It slipped below 20% earlier this year before reaching the latest level.

The shift reflects both falling large-cap prices and stronger performance among smaller companies. Small- and mid-cap companies represented 20.6% and 23.1% of total market capitalisation in September 2026. Their shares were around 18% at the start of 2024, according to ET calculations.

The article discusses ten major companies: Reliance Industries, HDFC Bank, Bharti Airtel, TCS, Larsen & Toubro, LIC, Bajaj Finance, ICICI Bank, State Bank of India and Kotak Mahindra Bank. It identifies Reliance Industries as India’s largest company by market capitalisation. Together, these companies made up the top 10 group measured in the article.

Their recent performance was mostly weak. Reliance Industries fell 26% this year, HDFC Bank declined 27%, Bharti Airtel dropped 15% and TCS lost 32%. Larsen & Toubro fell 11%, LIC declined 7% and Bajaj Finance slipped 3%. ICICI Bank and State Bank of India were broadly flat, while Kotak Mahindra Bank gained 1%.

Because market capitalisation depends on share prices, declines in several heavyweight stocks reduced the group’s combined value. The group stood at ₹84.84 lakh crore, its lowest level since December 2023. That weakness helped lower its share of the total market.

The concentration of India’s stock market has fallen because the biggest companies lost ground while smaller companies gained relative importance. Heavy foreign selling weighed on large-cap stocks. At the same time, domestic investment flows continued supporting the broader market, helping smaller and mid-sized companies perform better.

Several index heavyweights recorded steep declines. Reliance Industries fell 26% this year, HDFC Bank dropped 27%, Bharti Airtel declined 15% and TCS fell 32%. Other members also weakened, including Larsen & Toubro, LIC and Bajaj Finance. These price movements reduced the top 10 group’s combined market capitalisation to ₹84.84 lakh crore.

The result was a top-10 share of about 17.65% of all listed market value on October 9, the lowest since January 2017. Meanwhile, small- and mid-cap shares of total market value rose to 20.6% and 23.1% in September 2026. Investors are looking beyond traditional index heavyweights toward emerging opportunities.

Foreign selling affected large-cap stocks, including several companies in the top 10. When overseas investors sell heavily, prices of major stocks can weaken. That reduces the market value of the companies receiving the selling pressure. The article identifies this selling as an important force behind the top 10’s declining market share.

Domestic flows moved in the opposite direction by continuing to support the broader market. Smaller companies outperformed large-cap stocks, so their market value grew faster relative to the market’s biggest firms. Small-cap companies’ share reached 20.6% in September 2026, while mid-cap companies reached 23.1%.

Both forces changed the market’s structure. The top 10’s share fell from about 25% at the start of 2023 to 17.65% on October 9. Biswas linked the change to investors seeking companies and sectors positioned for India’s next growth phase, including public infrastructure. The shift may continue if those preferences persist.

A lower concentration of market value means India’s largest companies account for less of the overall listed market. For investors holding major indexes dominated by large companies, this can make index performance less representative of opportunities elsewhere. The market is becoming broader as smaller and mid-sized firms claim more value.

The article provides a clear example. The top 10’s share fell from about 25% at the start of 2023 to 17.65% on October 9. Meanwhile, small- and mid-cap companies reached 20.6% and 23.1% of total market capitalisation in September 2026. Several large-cap stocks fell sharply, while smaller companies outperformed.

This does not automatically mean major indexes will perform poorly. It means their results may differ more from the broader market when leadership shifts. Investors may need to understand how much their portfolios depend on traditional heavyweights. The article points to emerging opportunities, including public infrastructure, as part of this change.

Market capitalisation is calculated by multiplying a company’s current share price by the number of its outstanding shares. It estimates the total market value assigned to the company’s equity. Adding the market capitalisations of listed companies gives the market’s overall value, while adding the largest firms produces a group total.

For example, if a company has 100 crore shares and each share trades at ₹100, its market capitalisation is ₹10,000 crore. If the share price falls to ₹80 while the share count stays unchanged, the value becomes ₹8,000 crore. The same mechanism works for a group of companies.

This explains the article’s figures. Falling prices at Reliance Industries, HDFC Bank, Bharti Airtel and TCS reduced the top 10’s combined value to ₹84.84 lakh crore. Price gains or losses can therefore change both an individual company’s market capitalisation and its share of India’s total market value.