Nifty 200

What is the Nifty 200?

The Nifty 200 index is a broad-based benchmark that represents the performance of the top 200 equity stocks listed on the National Stock Exchange (NSE), covering large-cap and mid-cap segments. It combines the Nifty 100 (large cap) and Nifty Midcap 100 indices, offering a well-diversified view of India’s equity market. The index is designed to measure the collective performance of India's most actively traded and financially strong companies. By including both large and mid-sized firms, the Nifty 200 provides investors with a balanced mix of stability and growth.

It is widely used by mutual funds and ETFs as a benchmark for diversified equity portfolios. The index covers nearly 85-90% of the free-float market capitalisation of the NSE, making it one of the most comprehensive indicators of India’s economic and corporate health. It is suitable for long-term investors who want diversified exposure across various sectors and company sizes within a single index.

Nifty 200 selection criteria

The Nifty 200 is composed by combining the Nifty 100 and the Nifty Midcap 100 indices. Stocks are selected based on full market capitalisation, free-float market capitalisation, and average daily turnover. The Nifty 100 includes the top 100 large-cap companies, while the Nifty Midcap 100 includes the next 100 mid-cap companies ranked by market cap. Both segments undergo separate screening processes to ensure liquidity, trading frequency, and eligibility under SEBI norms. The resulting 200-stock portfolio offers cross-sector and multi-cap representation.

The index is reviewed semi-annually in March and September by NSE Indices Ltd. Changes are made based on updated market cap rankings, liquidity standards, and compliance with listing criteria. Sector weights are not capped, allowing the index to reflect the true sectoral composition of the Indian market at any given time.

How is the Nifty 200 index calculated?

The Nifty 200 is calculated using the free-float market capitalisation-weighted method. Only shares available for public trading are considered in the index computation. The base date of the index is January 1, 2001, with a base value of 1000. The index is calculated and published in real-time during trading hours using the latest prices of its constituent stocks. NSE Indices Ltd is responsible for its management, including periodic reconstitution and maintenance. Since the index represents a large portion of the NSE’s total market cap, it is a reliable benchmark for both passive and active investment strategies. Its construction ensures representativeness, liquidity, and broad market exposure, making it suitable for diversified, long-term investing.