Large-cap companies, valued at ₹20,000 crore or more, have a significant market share and are stable during market fluctuations. With a long-standing reputation and established history, these companies are less volatile than mid-cap or small-cap options. While they offer lower risk for investors, their returns can be comparatively lower. Investing in large-cap stocks is a safer option for those looking for stability and consistency in their investment portfolios.

Examples of large cap stocks

Reliance Industries and Infosys, large-cap companies on India's stock exchanges, are solid choices for long-term investors due to their market presence and consistent performance.

What do You Mean by Large-Cap Stocks?

Market capitalisation, shortened to cap, measures a company's value by multiplying total shares with unit price. Large-cap stocks refer to shares with high market capitalisation issued by a company.

Bull Market Vs Bear Market

In India's stock market, Bulls and Bears are common players. The market is usually bullish, but sometimes turns bearish temporarily. These trends have always existed in Indian stock markets. But what are bulls and bears and why do they appear and disappear during different phases? This article explores these terms to provide a better understanding.

The stock market experiences bull and bear phases due to investors or traders' fear and greed. Investors fear prices may fall or greed believing prices will rise further. When prices rise, investors buy stocks hoping to profit, creating a bull phase.

A bull is an optimist holding or selling stocks at a profit, while a bear sells stocks anticipating a price drop to profit from it. The term "bull" originates from a well-known investor, and a bull market signifies increasing prices, resembling an economic boom. Conversely, a bear market indicates a decline in stock prices.

The interplay between bull and bear markets is often likened to a bullfight, symbolizing market fluctuations. During a bull market, investors are eager to buy at higher prices, while in a bear market, panic ensues as investors quickly sell shares regardless of price. The constant battle between bulls and bears reflects the market's volatile nature, drawing investors into a frenzy during bullish periods and triggering panic during bearish trends.

Analysis of the Share Market Bull and Bear

A bull market is a sustained rise in security prices, while a bear market is a prolonged downturn characterized by falling prices and negative sentiment. In a bear market, fear of further price declines leads to increased selling. It is the lack of buying, rather than increased selling, that defines a bear market. When stock prices rise above their fundamental values, investors may buy at inflated levels based on perceived future events that may not materialize. As positive news emerges, stock prices increase beyond their actual value, drawing more investors into the market. Eventually, prices get so high that any negative information can trigger panic selling among investors, leading to a downward spiral in prices.