Nifty Midcap 150

What is the Nifty Midcap 150?

The Nifty Midcap 150 is a broad-based stock market index maintained by NSE Indices Limited, designed to capture the performance of the midcap segment of Indian equities. The index consists of 150 companies ranked from 101st to 250th by full market capitalisation among all stocks listed on the National Stock Exchange (NSE). It serves as a comprehensive benchmark for investors seeking exposure to India’s mid-sized corporate sector, which typically exhibits a balance between growth potential and stability.

The Nifty Midcap 150 encompasses companies from diverse sectors such as financial services, consumer goods, healthcare, industrials, and technology, providing a well-rounded representation of India’s midcap universe. These companies are often characterised by strong growth trajectories and expanding market share, while being less volatile than small caps but more dynamic than large caps. The index is widely used by mutual funds, ETFs, and portfolio managers as a reference point for midcap investment strategies. It is reviewed and rebalanced semi-annually to stay current with market trends and ensure ongoing relevance as a barometer for India’s midcap segment.

Nifty Midcap 150 stocks selection criteria

The Nifty Midcap 150 index follows a transparent, rules-driven selection methodology. Companies are included based on their ranking by full market capitalisation, specifically those ranked from 101st to 250th, immediately after the large-cap universe. Eligible stocks must have a minimum listing history of six months and demonstrate sufficient trading volumes and liquidity, ensuring the index is investable and reflects actual market activity. Only actively traded stocks with high average daily traded value and trading frequency are considered, while stocks under surveillance, with significant governance issues, or subject to regulatory restrictions are excluded. The index undergoes semi-annual reviews, typically in March and September, to incorporate changes in market capitalisation and liquidity. During each review, additions and removals are made to ensure the index remains representative of the midcap segment and stays aligned with evolving market dynamics. This rigorous selection process ensures that the Nifty Midcap 150 is a reliable and robust benchmark for tracking the midcap sector’s performance within the Indian equity market.

How is the Nifty Midcap 150 index calculated?

The Nifty Midcap 150 is calculated using the free-float market capitalisation-weighted methodology. Only shares available for public trading (excluding promoter and locked-in holdings) are considered for each stock’s weight. The index value is calculated as:

Index Value = (Current Free-Float Market Capitalisation / Base Market Capitalisation) x Base Index Value

The index is reviewed and rebalanced semi-annually, with adjustments for corporate actions like stock splits, bonuses, and rights issues, ensuring that it accurately reflects the performance of the midcap segment for investors.

Factors affecting the Nifty Midcap 150

The Nifty Midcap 150’s performance is shaped by a combination of macroeconomic, sectoral, and company-specific factors. Macroeconomic indicators such as GDP growth, inflation, interest rates, and fiscal policy directly impact midcap companies, which are often more sensitive to economic cycles than large caps. Sectoral trends, regulatory changes, and government initiatives can have a pronounced effect, especially since the index spans diverse industries. Company-specific factors like quarterly earnings, business expansions, mergers and acquisitions, and management changes can drive notable stock price movements within the index. Additionally, investor sentiment, mutual fund flows, and activity by domestic and foreign institutional investors play a crucial role, as midcap stocks tend to have higher volatility and lower liquidity than large caps. External factors such as global market trends, currency fluctuations, and geopolitical events can further influence index performance, making the Nifty Midcap 150 a dynamic and responsive indicator of India’s mid-sized corporate sector.