Tariffs will potentially accelerate this trend | Photo credit: Champipixs
The proportion of the 50 main companies quoted in the capitalization of the country’s total capital market has been reduced over the years, a trend that can gain impulse in the middle of the global rate war.
In 2006, these companies conducted 75 percent of the entire MCAP. That number has been reduced by just under 50 percent, showed a capital study of a period between 2006 and early 2025. The average and small capitalization segment has more than duplicate from 13 percent to 29 percent. Segment 51-100 has grown from 13 % to 15 %. Band 101-250 has increased from 9 % to 19 percent. The 251-500 segment has gained 4 percent participation to 10 percent.
Several factors have contributed to this. The smallest companies have enjoyed a greater expansion of valuation than their counterparts of great capitalization. Emerging sectors such as specialized chemicals, new era, defense and renewable energy technology have seen that their market limits expand significantly.
“There are hundreds of new listings in recent years. Institutional and retail investors are implementing capital beyond the traditional space of great capitalization and the country’s start ecosystem has matured, with a greater scope of public companies and accessing public and accessing the public and accessing the public and accessing the public or accessing the public and accessing the public and accessing the public of public advertising and accessing” Elman.
Tariffs will potentially accelerate this trend. “Companions who depend mainly on export income could face challenges, specific in the growth front, while smaller companies focused on domestic consumption will emerge,” said Vijaykumar.
Okay for him, this denotes a structural change. Although there may be a capital flight to quality, causing a reversal to the domain of great capitalization, as seen the duration of the financial crisis of 2008 and the Covid accident, the long -term trajectory has been consistent.
This also means that small and average exposure in average capitalization is no longer a tactical commitment and is becoming a necessary component of a representative capital portfolio.
“A broader market creates more inefficiencies and opportunities for qualified shares collectors to identify poor pricing assets. With the lid of the extended market, how the indices are built and weigh and become increasingly important,” said Vijaykumar.
Posted on April 14, 2025