The Nifty Midcap 50 is a broad market stock index created by the National Stock Exchange (NSE) that tracks the performance of 50 companies in the mid-cap segment listed on the NSE. Mid-cap companies are those that are ranked between 101 and 250 in terms of full market capitalisation.

The Nifty Midcap 50 index is designed to represent about 7% of the total free-float market capitalisation of all of the stocks listed on the National Stock Exchange. The top five sectors include financial services, capital goods, healthcare, automobiles and auto components, and information technology.

The Nifty Midcap 50 index is calculated using the free-float market capitalisation method. Step 1 calculates the free-float market capitalisation: Market Capitalisation = Current Market Price x Number of Shares Available for Trading. Then: Free-Float Market Capitalisation = Market Capitalisation x Free-Float Factor. Here, the base date is January 1, 2004, and the base index value is 1,000.

The stock must be a part of the Nifty Midcap 150 index. The top 100 companies from the Nifty Midcap 150 index based on the average daily full market cap and average daily turnover during the previous six months are considered for inclusion. Out of this list, the top 50 stocks based on their average free-float market capitalisation for the last six months are selected.

The top 30 F&O stocks in terms of the average free-float market cap for the last six months from the Nifty Midcap 150 are included. Stocks will be excluded if their rank falls below 70 in the top 100 companies in terms of the average free-float market capitalisation or if they are excluded from the Nifty Midcap 150.

The Nifty Midcap 50 is reviewed and rebalanced semi-annually in January and July. If there are any changes to the stocks in the index, they are done on the last day of March and September.