*This is simply the list of best small-cap stocks. Gujarat Narmada Valley Fertilizers & Chemicals Ltd (GNFC) List of Best Small Cap Stocks in India – As of June 2021 Company Name Whereas S&P BSE Small Cap index represents about 900 small cap stocks in the market. Nifty Small Cap 50 index consists of the top 50 most traded small cap stocks in the market. These help investors gauge the overall trend of small cap stocks. There are two main small cap indices in India. But they are incredibly volatile and are riskier than large cap and mid cap stocks. Small cap stocks have the potential to deliver superior returns in the long term. The market capitalisation of small cap companies is generally less than Rs 5,000 crores. Recommended reading: What is market capitalisation with examples? The market capitalisation of the company is Rs 4,00,000.
So, if a company has 20,000 outstanding shares in the market each priced at Rs 20. It is calculated by multiplying outstanding shares by current share price of a company. Market capitalisation simply means the total value of a company’s shares. The Securities and Exchange Board of India (SEBI) defines small cap stocks as companies ranked beyond 251 as per market capitalisation. What are Small Cap Stocks? – Definition of Small Cap Stocks
Similarly, small cap stocks are at the bottom of an investor’s buy list. Their chances of becoming class topper are low. The faculty has very little expectations from them. Small cap stocks are like the backbenchers in a class.