India’s benchmark equity indices have struggled to break past key resistance levels over the past two months, reflecting growing caution among investors.
The Nifty 50 index has faced sustained selling pressure near the 26,000 mark, failing on several occasions to decisively move beyond this level. A similar pattern has been observed in the Nifty Midcap 100, which has repeatedly encountered resistance in the 60,000–60,500 range. Meanwhile, the Nifty Smallcap 100 has been on a steady decline during the same period, underperforming the broader market.
In the Indian market, companies are classified by market capitalisation into three broad categories. Large-cap firms are defined as the top 100 listed companies by market value. At present, this corresponds to companies with a market capitalisation of more than about ₹1,060 billion. Firms ranked between 101 and 250, with valuations ranging from roughly ₹343 billion to ₹1,060 billion, are categorised as mid-cap companies. All remaining listed companies fall into the small-cap segment.
India’s total listed market capitalisation stands at approximately ₹474 trillion. Of this, around 60% is accounted for by large-cap stocks, while mid-cap and small-cap companies each contribute about 20%. A similar pattern emerges when adjusted for free-float market capitalisation, which excludes promoter holdings. On this basis, large-cap companies represent about 63% of the market, mid-caps 20%, and small-caps the remaining 17%.
Performance data for 2025 so far highlights this divergence. The Nifty 50 has gained around 9.5% year-to-date, while the Midcap 100 is up about 4.5%. In contrast, the Smallcap 100 index has fallen by roughly 8%.
Fund performance mirrors this trend. According to Value Research, large-cap mutual funds have delivered average returns of around 8% so far this year. Mid-cap funds have generated about 2%, while small-cap funds have seen average losses of around 6%. Multicap and flexicap funds have produced modest returns of between 1.5% and 3%.
Market analysts say the data reflects a shift toward relative safety, with investors favouring larger, more established companies amid heightened volatility.
