Top 10 largest companies in India by market capitalization

When it comes to investing in the Stock market, it is very difficult to select the stocks in which you are going to invest whether you're a beginner or have experience. Selecting a stock so that you can hold it for years and it will give you massive returns, is quite a difficult task. But one thing is permanent in the stock market if you invest in the largest companies, you won't be going to regret it in the future as the stocks of huge capitalization are more stable than the mid-cap and small-cap stocks. So in this article, we came with the top 10 largest listed companies in India in terms of market capitalization.

What is Market Capitalization?

Market capitalization is used to identify the value of a particular company. Market capitalization is calculated by no. of shares multiplied by the current price of that particular share. You must remember that market capitalization may vary with the price of the stock.

For example; Let the stock price of company A is Rs. 100 and the no. of outstanding shares are 1000. So the market capitalization of Company A will be Rs. 100000.

Top 10 largest listed companies in India 

1. Reliance Industries ( Market Cap-Rs. 12,66,132 crores )

pic credit; freepressjournal.in

Currently trading at Rs. 1931.75 and the market capitalization is Rs 12,66,132 crores, started their business from the textile industry, Reliance Industries is the largest company in India in terms of market capitalization and revenue generation per year. Their headquarter is in Mumbai, currently headed by Mukesh Ambani. The company was co-founded by Dhirubhai Ambani and Champaklal Damani in 1960's. They run their business in Retail, clinical, telecom, and communication industry, petrochemical industry, and many more. The stock generated returns at 32% CAGR in the last 5 years.

Also read; Why the Stock market is the best investment ever?

2. Tata Consultancy services ( Market Cap-Rs. 11,58,875 crores )

pic credit ; financialexpress.com

Tata Consultancy Services is a multinational Indian company and their headquarter is in Mumbai, Maharashtra, India. TCS is the largest company in the IT sector and the second-largest company in India in terms of market cap. TCS is the subsidiary of the TATA group and is working on 149 locations in 46 countries. Their client base comes from Banking, entertainment, telecom, Financial Services, Retail, and many more sectors. TCS is currently trading at a price of Rs. 3132.90 and their current market cap is Rs. 11,58,875. The stock has generated returns at a CAGR of 20.46% in the last 5 years.

3. HDFC Bank ( Market Cap-Rs. 7,80,257 crores )

pic credit; livemint.com

HDFC Bank is a subsidiary of a Housing Development finance corporation, incorporated in 1994 with its registered office in Mumbai, Maharashtra, India. They provide banking and financial services which include wholesale banking, retail banking, auto loans, personal loans, credit cards, etc.... and it is the largest private bank and the 3rd largest company in India in terms of market capitalization. HDFC Bank stock is currently trading at a price of Rs. 1414.75 and its total market capitalization is Rs 7,80,257 crores. HDFC bank stock has generated compounded their shareholders' wealth at a CAGR of 20% in the last 5 years.

4. Infosys ( Market Cap-Rs 5,74,194 crores )

pic credit; indianexpress.com

Headquartered in Bangalore, Infosys was founded by seven engineers in 1981. Infosys is an Indian multinational company that provides information technology, business consultancy, and outsourcing services. It is the second-largest IT company after Tata consultancy services. The company was listed in the Indian stock exchange in 1993 and it was the first Indian company listed on the American Stock exchange NASDAQ. The current market capitalization of Infosys is Rs 5,74,194 crores and it is currently trading at a price of Rs.1352.55. In the last 5 years, it has generated returns at a CAGR of  18%.

5. Hindustan Unilever limited ( Market Cap-Rs. 5,66,527 crores )

Pic credit; QZ.com

Headquartered in Andheri, Mumbai, India, Hindustan Unilever was established in 1931 and is a subsidiary of Unilever. It is the largest company in India in the FMCG sector in terms of the market capitalization of Rs. 5,66,527 crores. Hindustan Unilever is a consumer goods company and it has a large variety of products including foods, beverages, personal care products, cleaning agents, water purifiers, and other fast-consuming goods. It is currently trading at a price of Rs. 2411.20 and it has generated returns at a CAGR of 22.80% in the last 55 years. 

Also read; Top 10 books you must read as a stock market beginner. 

6. Housing Development Finance Corporation ( Market Cap-Rs 4,50,400 crores )

pic credit; livemint.com

Founded in 1977, It was the first specialized mortgage company in India. Housing Development Finance Corporation Limited is an Indian financial company based in Mumbai, India. Along with Housing finance, it also has a presence in banking, life, and general insurance, education, deposits, venture capital, asset management, etc. It is currently trading at a price of 2496.75 and its current market cap is Rs. 4,50,400 crores. It has generated returns at a CAGR of 15.70% in the last 5 years. 

7. ICICI Bank limited ( Market Cap-Rs. 4,20,019 crores)

pic credit; India.com

ICICI Bank is an Indian multinational company headquartered in Mumbai, Maharashtra, India. It provides a wide range of banking and financial products. The Bank has a network of 5,275 branches across India and it also operated in 17 other countries. ICICI bank offers products like online money transfer, tracking services, saving accounts, current accounts, recurring deposits, time deposits, mortgages, credit cards, loans, etc...It has many subsidiaries including ICICI prudential life, ICICI Lombard, ICICI securities limited, etc... It is currently trading at a price of Rs.607.10 and its current market capitalization is Rs.4,20,019 crores. It has generated returns at a CAGR of 24.37% in the last 5 years.

8. Kotak Mahindra Bank ( Market Cap-Rs.3,53,445 crores )

pic credit; hindustantimes.com

Kotak Mahindra Bank Limited is an Indian private sector bank established in 1985 by Uday Kotak, headquartered in Mumbai, Maharashtra, India. It is the third-largest Indian private bank when compared to market capitalization, It offers banking and financial products like personal finance, current accounts, saving accounts, credit and debit cards, wealth management, life insurance, etc...It operates with nearly 1600 branches across India. Their major subsidiaries are Kotak Mahindra Life insurance, Kotak Mahindra General Insurance, Kotak securities. It is currently trading at a price of Rs.1780.35 and its current market capitalization is Rs.3,53,445 crores. It has generated returns at a CAGR of 19.45% in the last 5 years. 

9. Bajaj Finance ( Market Cap-Rs.3,31,041 crores )

pic credit; The Economic times

Headquartered in Pune, Maharashtra, Bajaj Finance Limited is a subsidiary of Bajaj Finserv Limited. The company deals in consumer loans, commercial lending, wealth management, and SMEs and is a Non-Banking financial company. The company is operating with 294 branches across the country. The stock is currently trading at a price of Rs.5493.80 and its current market capitalization is Rs.3,31,041 crores. It gave a massive return to its shareholder in the last 5 years at a CAGR of 49% and it gave returns of 172.64% in just last 1 year. 

Also read; Everything you need to know about the Harshad Mehta Scam.

10. State Bank of India ( Market Cap-Rs.3,19,724 crores )

pic credit; livelaw.in

Headquartered in Mumbai, Maharashtra, India, is a multinational Indian bank. State Bank of India holds the highest market share 23% in the banking industry in India. SBI is operating with 22,141 branches and 58,555 ATMs across the country. Apart from India, the bank is also operating in 36 other countries along with Australia, Bangladesh, Canada, UK. SBI Capital Markets, SBI cards, SBI life insurance, SBI cards are the major subsidiaries of this bank. The stock is currently trading at a price of Rs.358.25 and its current market capitalization is Rs.3,19,724 crores. The stock has generated 14.11% CAGR returns in the last 5 years. 

If you also want to earn consistently into the stock market and want to learn the effective strategies of investing then I would suggest you the book "How to avoid losses and earn consistently in the stock market" written by "Prasenjit Paul". You can buy tis book by clicking the link below from amazon.

Benefits of investing in stocks having a large market capitalization

1. Stability

Large-cap stocks are more stable and safe than the mid-cap and small-cap stocks in terms of generating returns as the large-cap stocks generally have a good reputation in the market. And they are the fewer reactors to the rumors of the market.  

2. Dividend

It has been observed for years that generally large-cap stocks give good dividends to their shareholders as their growth and revenue increase constantly per year. 

3. Information availability

You see all the large-cap stocks have years of records and while analyzing the stocks you need the financial statement, growth and revenue report, and many other things but in the case of small and mid-cap stocks, they may be unavailable. 

Also read; Stocks that made Rakesh Jhunjhunwala the big bull of the stock market.

Disclaimer

Above all the stock price and market capitalization are given as of 9th of May 2021. They will surely vary further as the prices of the stocks will change and the list of top 10 large-cap stocks may also change. 

Click here to open your Demat account now and take the first step of your investment journey with one of the fastest-growing stock brokers in India, Upstox where you get many investment opportunities in just a single account.

That's all for this article, I hope you guys liked this article and if you want to share anything with us please feel free to comment down. Happy Investing!! ✌✌