The number of companies with a market capitalisation of ₹1 lakh crore has increased over 40 times in the last 2 decades. This growth was driven by strong economic fundamentals, financial reforms, and increased investor participation. NSE’s market share rose from 18% to over 60% due to this surge, as per news reports.
In FY04, only 1 company had a market cap of ₹1 lakh crore. By FY10, the number increased to 14, with a combined valuation of ₹21.2 lakh crore. The 2008 global financial crisis temporarily affected the market, but recovery was swift. By FY15, 22 companies had a market cap of ₹1 lakh crore, totaling ₹43.8 lakh crore.
In FY19, 30 companies reached the ₹1 lakh crore threshold, with a total market cap of ₹73 lakh crore. By FY24, the number surged to 81 companies, with a combined valuation of ₹234 lakh crore. This accounted for over 60% of NSE’s total market cap, reflecting a post-pandemic recovery.
The market cap of the top 10 companies grew 28 times in the last 2 decades. In FY04, the combined market cap of the top 10 was ₹3 lakh crore. By FY14, it increased to ₹22 lakh crore, and by FY24, it surged to ₹89 lakh crore. This was driven by economic growth, market reforms, and investor confidence.
Reliance Industries (RIL) retained its leadership from FY04 to FY24. RIL’s market cap increased by over 26 times, from ₹75,132 crore to ₹20 lakh crore. This resulted in an annualised return of over 17%, surpassing the NIFTY50 Index’s return of 13.5%. By FY24, the top 10 companies accounted for around 23% of NSE’s total market cap.
The composition of the top 10 companies changed significantly over 20 years. 5 companies in FY04 did not make it to the FY14 list, though 2 re-entered in FY24. TCS, ONGC, Coal India, HDFC, and HDFC Bank entered the top 10 by FY14. However, by FY24, ONGC and Coal India were no longer part of the ₹1 lakh crore club.
The profitability of the top 10 companies grew substantially. Net profit increased from ₹20,643 crore in FY04 to ₹3.6 lakh crore in FY24. Revenue grew at a CAGR of 15.5%, rising from ₹1.8 lakh crore in FY04 to ₹32 lakh crore in FY24. Total assets expanded from ₹8.2 lakh crore in FY04 to ₹162 lakh crore in FY24.
The surge in companies with a ₹1 lakh crore market cap reflects India’s robust economic growth and reforms. The top companies have grown in profitability, revenue, and market capitalisation, driving India’s stock market to new heights.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 2, 2025, 10:01 AM IST
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