Market Capitalization: Latest stock price multiplied by number of shares outstanding (shares issued)
Large Cap - Company with market capitalization greater than $8 billion
Small Cap - Company with market capitalization less than $1 billion
This is the glossary definition given in moneycontrol website.
I think Mid Cap is The Companies in between large and small.
As AastroGuru mentioned, Market Capitalization (MC) indicates how big the company is from the market’s perspective. In other words, MC indicates how much money is required if you wish to buy all the shares of the company. For example CIPLA’s MC is 49,000 Crs. This is how much you need if you wish to buy all the shares of Cipla.
Companies are classified into different MC’s based on their size…there is no formal rule for this, but generally if the MC falls between :
100 Crs to 1000 Crs - Micro Cap
1000 Crs to 10,000 Crs - Small Cap
10,000 Crs to 25,000 Crs - Mid Cap
25,0000 Crs and above - Large cap
You maybe interested to know TCS is the most valuable compnay in Indian in terms of MC. Its MC stands at Rs.548,296 Crs.
Stocks are typically classified into three types :-
Large Cap - These stocks have the highest market capitalization, are most liquid and pay good dividends
Mid Cap - These stocks fall in the middle range market capitalization, are not as liquid as large caps and their dividend payouts is less, as they require the funds for their growth
Small Cap - These stocks have the lowest market capitalization value, are illiquid and they rarely pay any dividends
Traders should stay away from Small Caps as they are generally risky and may move out of the business.
Thanks for clarifying!
So penny stocks are less than 100 crores in marketcap?
@ Tarzan, yes and no 
A stock is considered penny by virtue of the price it trades at. While some consider sub Rs.10 as penny stocks, others prefer to classify sub Rs.20 as penny stock.
Market cap calculation includes taking into consideration the number of shares. So if a company is trading at a low value but still has a very large equity base then the market cap of the company shoots up.
For example BL Kashyap & Sons is trading at Rs.14 (can consider this as a penny stock) has a market cap of close to 300 Crs. Which means at half the stock price (Rs.7/-) the market cap is still 150Crs.
But having said that, as far as I’ve noticed most of the penny stocks has a market cap of sub 100 Crs.