For a novice or a new comer every jargon is hard to understand and lack of understanding intimidates them.
As soon as on feels this is hard to grasp there are two ways to respond. Either ask someone and wrap your head around it or just leave it out of ego or embarrassment and move on to something else.
Anyway there are enough distractions in this world. Who wants to take on another headache of new stuff?
But knowing all this is so worth it . And its simple.I promise you.
When we say Large Cap stocks. We are talking obviously about the large stocks. What is a large stock? Who defines it?
Stocks which have a large market capitalization and are industry leaders are called Large Caps.
When we think of large companies in India the obvious big names come to our mind.
The big daddy of all is Reliance Industries looms large.
Other names which come to mind are HDFC Bank, TCS, Asian Paints, Infosys, Hindustan lever, State bank of India.
Yes
All of these are large Cap Stocks.
Market Capitilisation is the number of shares which are outstanding (or in other words issued and traded by the company) multiplied by (*) the share price .
So Reliance Industries ltd approximately has 633 Crores number of shares which they issued and the price of share would be about Rs 1490 per share as of 14 feb 2020. So the total value of share would be 633 crores * 1490 … which would be a huge number of Rs 944576 crores.
If you divide it by 100 crores we would get the number in billions – so about 9400 billion Rs. For us this is the benchmark to begin with.
As Reliance Industries is THE largest company the other companies are benchmarked below that.
HDFC Bank has a Market Cap pf about 6600 crores.
Titans market Cap is about 1100 crores.
Typically any company which as a market cap of above 1000 crores or a 10 billion Rs is considered Large Cap.
They would generally be the market leaders in their space.
Also there would be a lot of volume or trading in these stocks so if you hold these stocks then there would never be a problem finding a buyer for these.
These are the top 100 companies in India based on market Cap – NSE100
So next time someone says buy a large Cap? Easy..
You know what they are talking about.
For a novice or a new comer every jargon is hard to understand and lack of understanding intimidates them.
As soon as on feels this is hard to grasp there are two ways to respond. Either ask someone and wrap your head around it or just leave it out of ego or embarrassment and move on to something else.
Anyway there are enough distractions in this world. Who wants to take on another headache of new stuff?
But knowing all this is so worth it . And its simple.I promise you.
When we say Large Cap stocks. We are talking obviously about the large stocks. What is a large stock? Who defines it?
Stocks which have a large market capitalization and are industry leaders are called Large Caps.
When we think of large companies in India the obvious big names come to our mind.
The big daddy of all is Reliance Industries looms large.
Other names which come to mind are HDFC Bank, TCS, Asian Paints, Infosys, Hindustan lever, State bank of India.
Yes
All of these are large Cap Stocks.
Market Capitilisation is the number of shares which are outstanding (or in other words issued and traded by the company) multiplied by (*) the share price .
So Reliance Industries ltd approximately has 633 Crores number of shares which they issued and the price of share would be about Rs 1490 per share as of 14 feb 2020. So the total value of share would be 633 crores * 1490 … which would be a huge number of Rs 944576 crores.
If you divide it by 100 crores we would get the number in billions – so about 9400 billion Rs. For us this is the benchmark to begin with.
As Reliance Industries is THE largest company the other companies are benchmarked below that.
HDFC Bank has a Market Cap pf about 6600 crores.
Titans market Cap is about 1100 crores.
Typically any company which as a market cap of above 1000 crores or a 10 billion Rs is considered Large Cap.
They would generally be the market leaders in their space.
Also there would be a lot of volume or trading in these stocks so if you hold these stocks then there would never be a problem finding a buyer for these.
These are the top 100 companies in India based on market Cap – NSE100
So next time someone says buy a large Cap? Easy..
You know what they are talking about.
Neeta
👌👌👌