In the decade running up to COVID-19, corporate profits were increasingly polarised in India. The top 20 listed companies accounted for a significant share of India Inc's profit pie. Since FY21, smaller companies have grown their profits faster. Profit democratisation owes much to: (a) the India Stack and UPI, (b) the widespread availability of affordable credit and (c) the rise of social media as a medium for smaller companies to reach customers. Interestingly, though the stock market seems to have overdone its enthusiasm for small caps - the top 20 companies' share of the BSE 500 market cap now stands at 35 per cent, the lowest in this century.
This story is not available as it is from the Wealth Insight April 2024 issue
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