India’s largest listed firms now hold a smaller share of the stock market compared to their American counterparts, as a broader spectrum of Indian companies and a shift away from commodities reshape its market landscape, contrasting sharply with the US’s increasing focus on technology giants.
India’s biggest listed companies now account for a smaller slice of the stock market than their American counterparts, even though the two markets have moved in opposite directions over the past five years. An analysis of National Stock Exchange Market Pulse data shows India’s Herfindahl-Hirschman Index, a standard measure of concentration, falling from 167.9 in 2020 to 80.9 in 2025, while the US score climbed from 95 to 164 over the same period.
The divergence points to a more dispersed Indian market and a more top-heavy American one. In the US, concentration has been pulled higher by the extraordinary rise of large technology groups, whose scale and market dominance helped turn Microsoft, Nvidia, Alphabet, Amazon, Apple, Meta and Tesla into the so-called “Magnificent Seven”. Japan, by contrast, has also seen concentration ease, with its HHI slipping from 83.9 to 75.9 over the same period.
The Indian market’s shift has been shaped by a broader mix of listings, especially a surge in initial public offerings, which has widened the field of publicly traded companies. The Business Standard analysis also notes that India has moved away from a commodities-led structure: materials accounted for 25 per cent of market capitalisation in 1995, while financials now represent 25 per cent, with industrials, consumer discretionary and information technology also making up a larger share.
Joshy Jacob of the Indian Institute of Management, Ahmedabad, argued that the structure of India’s leading companies helps explain why market-cap concentration has eased. India’s top 10 firms are dominated by banks, energy groups, IT services companies and fast-moving consumer goods businesses, many of which are capital-heavy and harder to scale rapidly than software or platform businesses. He said the country’s growing number of tech-native start-ups and mid-caps has also helped spread market value more evenly, even as concentration in business revenues has increased.
Jacob said the US pattern is different because the market has been reshaped by two-sided platforms, intangible-heavy businesses and technology companies with powerful moats and global reach. He said their market capitalisation has become detached from revenue concentration because investors are pricing in faster growth and unusually strong margins. He added that India’s future trajectory may depend on new listings and the continued expansion of recently listed tech-native firms.
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Source: Noah Wire Services
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The article was published on May 1, 2026, and presents recent data up to 2025, indicating high freshness. No evidence of recycled or outdated content was found.
Quotes check
Score:
10
Notes:
The article does not contain direct quotes, relying instead on data analysis and expert commentary. No concerns regarding the originality or verification of quotes.
Source reliability
Score:
8
Notes:
The article originates from Business Standard, a reputable Indian financial news outlet. However, it is important to note that Business Standard is a niche publication with a limited international reach, which may affect the broader recognition of its credibility.
Plausibility check
Score:
9
Notes:
The claims regarding the Herfindahl-Hirschman Index (HHI) scores for India and the US are plausible and align with known market trends. The article provides a reasonable explanation for the observed changes, citing factors such as increased IPO activity in India and the dominance of large technology firms in the US. However, the article does not provide specific data sources or methodologies, which makes independent verification challenging.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): MEDIUM
Summary:
The article presents recent data on market concentration in India and the US, with high freshness and no direct quotes, enhancing its credibility. However, the reliance on a niche publication and the lack of independent verification sources introduce some uncertainties. While the claims are plausible and align with known market trends, the absence of specific data sources and methodologies makes independent verification challenging. Therefore, the overall assessment is a PASS with MEDIUM confidence, with a recommendation for additional verification from independent sources to fully substantiate the claims.
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