The NIFTY Midcap 100 is a stock market index that represents the performance of the top 100 mid-sized companies listed on the National Stock Exchange (NSE) of India. It consists of a diverse array of 100 stocks, with half sourced from the NIFTY Midcap 50 and the rest selected based on daily turnover from the NIFTY Midcap 150. These stocks represent various sectors like Financial Services, Capital goods, and Healthcare and have a market capitalisation that falls between the largest and smallest companies in the stock market.
Launched in 2005, it's reevaluated semi-annually to stay aligned with market changes. From a governance perspective, it operates under a three-tier structure, ensuring it stays relevant for investors and reflects India's financial landscape. Additionally, there's a variant called the Nifty Midcap 100 Total Returns Index that is quite useful for assessing fund portfolios and ETFs like the MO Midcap 100 ETF. Overall, the Nifty Midcap 100 index provides investors with a benchmark to track the performance of mid-cap stocks, which are often considered to have growth potential and may offer higher returns compared to larger, more established companies.
How is the calculation done for the Nifty Midcap 100 index?
The calculation of the Nifty Midcap 100 index is based on the free-float market capitalisation-weighted method. This means that the index value is determined by considering the total market value of all constituent stocks, adjusted for their free-float market capitalization. Free-float market capitalisation excludes shares held by promoters and other strategic investors that are not available for trading in the open market. The weight of each stock in the index is proportional to its free-float market capitalisation, ensuring that larger companies have a greater impact on the index value.
This is not a static list. In other words, the Nifty Midcap 100 stock list is evaluated twice each year, and existing stocks can be replaced with new ones if they no longer meet the eligibility criteria. The criteria requires the stocks to be listed on the NSE, with all companies listed in the Nifty Midcap 50 getting automatically included. Securities from the NIFTY Midcap 150 are considered if they rank among the top 70 constituents based on average daily turnover. Securities ranking below 130 in the NIFTY Midcap 150 or those excluded from it are excluded from consideration.
Nifty Midcap 100 FAQ's
Investing in the Nifty Midcap 100 index provides investors with exposure to a diverse range of mid-sized companies that have the potential for growth. Mid-cap stocks are often considered to be in a sweet spot between small-cap and large-cap stocks, offering growth opportunities with less volatility compared to small-cap stocks.
The objective of the Nifty Midcap 100 index is to track the performance of mid-sized companies listed on the National Stock Exchange (NSE) of India. By providing a benchmark for mid-cap stocks, the index helps investors assess the performance of mid-cap companies and make informed investment decisions.
Several factors can influence the performance of the NIFTY Midcap 100 index, including macroeconomic trends, industry-specific factors, company earnings, investor sentiment, and market liquidity. Changes in these factors can impact the stock prices of mid-cap companies included in the index and consequently affect the overall performance of the index.
The Nifty Midcap 100 index is evaluated periodically to ensure that it accurately reflects the performance of mid-sized companies listed on the NSE. The index is typically reviewed and rebalanced on a semi-annual basis to incorporate any changes in the constituent stocks or their market capitalization.
The top 100 mid-sized companies listed on the NSE, (based on their market capitalisation), are included in the Nifty Midcap 100 index. To be included in the index, stocks must be listed on the National Stock Exchange. All companies from the Nifty Midcap 50 are included in the index, by default.
Additionally, securities from the Nifty Midcap 150 are considered if they rank among the top 70 constituents by average daily turnover. Securities ranking below 130 or excluded from the Nifty Midcap 150 are excluded. Equities with differential voting rights are eligible, but those providing fixed returns, such as convertible stock, preferred stock, warrants, and rights, are also excluded.
Various factors affect the Nifty Midcap 100 index:
Market capitalisation of stocks determines individual stock valuation and weightage. Foreign investors' ownership impacts market outlook and liquidity. The number of listed companies affects index breadth and diversity. Fuel price volatility impacts operating expenses and profitability. Industrial production data reflects economic activity, influencing sectoral composition. Government stability and performance contribute to investor confidence. Gross Domestic Product (GDP) data indicates overall economic health. Interest rates affect borrowing costs and profitability, impacting midcap stock prices.
Changes in these factors can influence the stock prices of mid-cap companies included in the index and affect its overall performance.
Other Indices
Indices Name
Price
Price Change(% change)
Nifty Alpha 50
50705.05
-0.5578
Nifty 100 Liq 15
7450.45
-0.8028
Nifty 10 B-G Sec
2623.12
0.0240
Nifty 8-13 G-Sec
2976.01
0.0121
Nifty10 BG-Sec-C
898.9
-0.0300
Nifty GS 4 8Yr
3228.22
0.0474
Nifty GS 11 15Yr
3256.48
-0.0746
Nifty GS 15YrPlu
3470.35
0.1813
Nifty100 ESG
5178.9
-0.3598
Nifty200 Qual 30
21342.1
-0.5899
Nifty Alpha LV30
27168.25
-0.2462
Nifty200 Momen30
31767.2
-0.5882
BSE SENSEX 50
27237.63
-0.3767
BSE Sensex Nxt50
86454.23
-0.5330
BSE 100 ESG Indx
435.95
-0.3975
BSE Low Volat.
1878.55
-0.2411
BSE Momentum
2232.49
-0.8029
BSE Quality
1864.67
-0.4075
BSE SENSEX Nxt30
39405.92
-0.7323
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