Risk and Return Analysis of Large-Cap and Small-Cap Stocks in NSE-Listed Companies in India: Implications for Green Business and Environmental Sustainability

The increasing priority given to environmental sustainability, green business practices, and initiatives towards a blue economy have drastically restructured investment patterns in India's financial markets. It is in this context that an understanding of the performance of equity investments becomes vital for promoting sustainable finance. This research study analyzes the risk and return of large-cap and small-cap stocks listed at NSE in order to assess whether such stocks could be suitable for long-term investment and the attainment of sustainability goals. “In this study, I have used secondary data obtained from the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE). The analysis is based on four years of secondary data covering the period from 2021 to 2024. The study uses descriptive statistics for the calculation of average returns, volatility levels, and beta values as a measure of market sensitivity pertaining to selected stocks. And the findings bring into focus differential risk–return profiles between large-cap and small-cap companies, and helps in generating information about their financial stability, resilience, and potential attraction of green and blue economy-aligned investments. In light of the increasing influence of environmental risks and ESG parameters in stock performance, this analysis would contribute to empowering investors, policymakers, and researchers with insights on how capital can be appropriately channeled towards enterprises contributing to environmental sustainability. In this manner, this study bridges the gap between conventional financial analysis and broader objectives about the growth of green business and the blue revolution pathways in India.