1W Return
▲1.25%
1M Return
▼-4.90%
6M Return
▲16.21%
1Y Return
▼-3.46%
3Y Return
▲124.45%
Open
23324.7
Prev. Close
23085.65
| Company | Market Cap | Market Price | Sector |
|---|---|---|---|
7,412.95 | 2,566.50 -203.90 (-7.36%)▼ | Retail | |
5,660.86 | 907.00 -49.60 (-5.19%)▼ | IT - Software | |
5,679.90 | 1,066.60 -37.60 (-3.41%)▼ | Miscellaneous | |
8,165.53 | 1,434.30 -44.60 (-3.02%)▼ | IT - Software | |
4,195.52 | 258.00 -9.60 (-3.59%)▼ | Pharmaceuticals |
What is the Nifty Microcap 250?
The Nifty Microcap 250 index represents the performance of 250 microcap companies from the Indian equity market. These companies are smaller than small caps in terms of market capitalisation and often belong to emerging or niche sectors with high growth potential. The index serves as a barometer for investor interest in the bottom end of the listed equity universe. It is ideal for seasoned investors looking to take calculated bets on early-stage, under-researched companies with scalable business models. While microcap stocks can offer multi-bagger returns over the long term, they are highly volatile and less liquid compared to their large and mid-cap counterparts.
The Nifty Microcap 250 index allows investors to track and benchmark investments in this dynamic and aggressive segment. It is also useful for fund managers and analysts seeking exposure to frontier opportunities in the Indian market. As India’s economy expands, some of these microcap firms may grow into future small or mid-cap leaders, making this index valuable from a discovery and wealth-creation perspective.
Nifty Microcap 250 selection criteria
Stocks in the Nifty Microcap 250 are selected from the Nifty Total Market index. The microcap segment includes stocks ranked 501-750 by full market capitalization. From this universe, 250 stocks are shortlisted based on free-float market capitalisation and liquidity filters such as average daily turnover and tradability. Sectoral weights are not capped, but diversification is ensured by avoiding concentration in illiquid or low-float stocks. The index includes companies with at least a three-month listing history to ensure stability. Stocks under suspension or with low trading frequency are excluded.
The Nifty Microcap 250 is reviewed and rebalanced semi-annually in March and September. The aim is to maintain a dynamic set of microcap companies that reflect the evolving trends in the bottom tier of the listed market. The selection methodology ensures that the index remains relevant, investable, and representative of India’s microcap landscape.
How is the Nifty Microcap 250 index calculated?
The Nifty Microcap 250 uses the free-float market capitalisation-weighted methodology. This means each constituent’s weight in the index is based on its market cap adjusted for only the shares available for public trading. The base date is April 1, 2005, with a base value of 1000. Real-time calculation and dissemination take place during trading hours, ensuring transparency and up-to-date index levels.
NSE Indices Ltd is responsible for the index’s calculation and maintenance. The index structure ensures that it captures price movements effectively while staying aligned with liquidity and investability parameters. Given the high-risk, high-reward nature of microcaps, this calculation approach offers a realistic and actionable benchmark for microcap investing strategies.
Nifty Microcap 250 FAQs
How to invest in the Nifty Microcap 250?
Investment can be made through microcap mutual funds or future ETFs if introduced. These options are available through brokers and mutual fund platforms.
What is the objective of the Nifty Microcap 250?
The objective is to track the performance of India's most liquid and tradable microcap stocks, providing exposure to the country’s smallest listed companies with high growth potential.
Factors that can impact performance of the Nifty Microcap 250 index
Liquidity issues, broader market sentiment, promoter actions, regulatory announcements, and macroeconomic instability can significantly affect index performance.
Is investment in the Nifty Microcap 250 safe?
It is inherently risky due to high volatility, lower liquidity, and limited financial disclosures. It is suitable only for informed, long-term investors with a high risk appetite.
Benefits of investing in the Nifty Microcap 250
Investing in this index has the potential for multi-fold returns, exposure to early-stage and innovative companies, high diversification, and an opportunity to invest in future industry leaders.