Top five companies account for 16% of India mcap, lower than DMs

India’s five most-valuable companies account for 16.3 per cent of the total market capitalisation (mcap). Developed markets (DMs) such the US, Germany and the UK have relatively higher contributions of top five companies in the total mcap. 

Among the top 10 nations in terms of market value, Saudi Arabia has the largest concentration, with top five companies accounting for over 80 per cent of its market value. 

This is largely on account of Saudi Aramco, the world’s third-most valuable firm with a market cap of $2.1 trillion. 

As far as the US is concerned, its top-five companies have a combined market value of over $10 trillion and account for a little over a fifth of its market. 

Nasdaq-listed Apple—the world’s most valuable company—has a market cap of over $3 trillion. Microsoft, Alphabet and Amazon are the next most valuable firms in the US. The combined mcap of top five Indian companies — Reliance, TCS, HDFC Bank, ICICI Bank and Infosys — is around $664 billion. Hong Kong and China have the least contribution from the top-five at 8 per cent and 13 per cent, respectively.