Nifty Midcap

The Nifty Midcap 100 Index comprises 100 NSE-listed stocks, accounting for 13% of NSE's free-float market cap as of 30 September 2024.

The NIFTY Midcap 100 Index tracks midcap stocks on the NSE, comprising 100 stocks—50 from the NIFTY Midcap 50 and 50 selected from the NIFTY Midcap 150 based on turnover. Covering 18 sectors, it represents 11% of NSE’s float-adjusted market cap as of June 2022, with its constituents making up 20% of NSE’s traded value. Launched on 18 July 2005 with a 2003 base year and a value of 1000, it has surpassed 27,000. Reconstituted semi-annually, it follows a three-tier governance structure and has a total returns variant used for benchmarking, index funds, and ETFs like the MO Midcap 100 ETF.

The NIFTY Midcap 100 share price is calculated using free-float market capitalization, considering only publicly traded shares. Stocks must meet these criteria: be NSE-listed, include all NIFTY Midcap 50 companies, and rank among the top 70 in NIFTY Midcap 150 by average daily turnover. Stocks ranking below 130 or excluded from NIFTY Midcap 150 are removed. Newly listed securities are assessed over three months instead of six. Equities with differential voting rights (DVRs) qualify, but fixed-return instruments like convertible stocks, preferred shares, warrants, and rights are excluded.

Index value = Current free-float market capitalisation / (Base free-float market capitalisation × Base Index Value).

The NIFTY Midcap 100 is reviewed semi-annually using six months of data ending in January and July. Any stock replacements take effect from the last trading day of March and September.

• Market Capitalisation: Determines stock valuation and index weightage.

• Foreign Investors’ Ownership: Affects liquidity and market outlook.

• Number of Listed Companies: Impacts index diversity.

• Fuel Price Volatility: Influences costs and profitability.

• Industrial Production Data: Reflects economic performance.

• Government Stability: Boosts investor confidence.

• GDP Data: Indicates economic health.

• Interest Rates: Affect borrowing costs and stock prices.

Changes in these factors drive fluctuations in the index.

You can invest in the NIFTY Midcap 100 through:

• Individual Stock Investment: Buy stocks directly from the index, requiring thorough research on performance, financials, and market trends.

• Exchange-Traded Funds (ETFs): Invest in ETFs tracking the index for diversification, reducing risks compared to stock picking.

Before investing, assess your risk appetite, investment horizon, and financial goals to choose the most suitable approach.