Micro Cap Stocks in India

What are micro cap stocks?

Micro cap stocks are the smallest listed companies by market capitalisation. SEBI's classification stops at small caps - everything below the top 250 - but investors commonly use 'micro cap' for the very smallest companies within that group. On this site, the micro cap band groups those smallest companies.

Micro caps make up a large number of listed companies but only a tiny share of the market's total value. Some are early-stage businesses with real potential; many are thinly traded, little-known companies.

Why micro caps need extra care

Very low liquidity

Many micro caps see only a few trades a day. You may not be able to sell when you want to, or at the price you expect.

Extreme volatility

Prices can double or halve in weeks, often without any change in the business.

Exchange surveillance

The exchanges place stocks with unusual price moves under surveillance frameworks such as ASM (Additional Surveillance Measure) and GSM (Graded Surveillance Measure), which can bring higher margins, tighter price bands or restrictions on trading.

Trade-for-trade segment

Some micro caps are moved to the trade-for-trade (T2T) segment, where every trade must be settled by delivery - you cannot buy and sell the same stock in one day.

Tips and manipulation

Micro caps are the most common targets of 'pump and dump' schemes promoted through social media and messaging apps. Be very wary of unsolicited stock tips.

What to check before investing in a micro cap

Read the company's financial statements and annual report, check whether it is actually profitable and generating cash, look at who the promoters are and whether their shares are pledged, and check the daily trading volume and whether the stock is under ASM or GSM surveillance. Limit micro caps to a small part of your portfolio - money you can afford to lose - and never invest on the strength of a tip alone.

How to invest in micro cap stocks

1. 1

   Open a demat and trading account

   A demat account holds your shares electronically; a trading account lets you buy and sell them. With GoPocket you can open both online in a few minutes with your PAN, Aadhaar and bank details.

2. 2

   Add money

   Transfer funds to your trading account by UPI or net banking.

3. 3

   Research the company

   Pick a company from the list above and open its page to see its share price chart, financial performance and shareholding before you decide. Compare it with other micro cap stocks on business quality, debt, growth and valuation.

4. 4

   Place your order

   Search for the stock in the GoPocket app or web platform, choose the quantity, and place a delivery order to hold the shares in your demat account. A limit order lets you set the most you are willing to pay.

5. 5

   Track and review

   Follow the company's quarterly results and news. Spreading your money across several companies and sectors reduces the damage if one investment goes wrong.

Terms used on this page

LTP

Last traded price - the price at which the stock last changed hands. The figure below it is the change from the previous day's close.

Market cap

Market capitalisation: share price multiplied by the number of shares issued. It measures a company's size in the market and is shown here in rupees crore (1 crore = 1,00,00,000).

Cap band

Whether a company is large, mid, small or micro cap, based on its market capitalisation. Larger companies tend to be less volatile.

Sector and industry

The NSE groups companies into broad sectors (such as Financial Services) and narrower industries within them (such as Banks), based on what they mainly do.

Trading graph

How the share price has moved during the latest trading session, from the 9:15 open to the 3:30 close. The dashed line is the previous day's closing price.