NIFTY Midcap 150

The NIFTY Midcap 150 is like a special team within this playground, made up of the next 150 companies after the first 100 (which are in the NIFTY 100). These companies are ranked from 101st to 250th based on how big they are in terms of their total value in the market.
NIFTY Midcap 150
4 mins
06-June-2024

NIFTY Midcap 150 is an important index that tracks the performance of mid-sized companies in India. It is part of the larger NIFTY index family. As the name suggests, is an index comprising 150 companies ranked 101-250 based on full market capitalisation from the NIFTY 500 Index. These companies fall between large-cap and small-cap companies in terms of market capitalisation. The index serves as a barometer of the mid-cap segment's performance in the Indian stock market. The index represents about 15% of the free float market capitalisation of the stocks listed on NSE as on September 29, 2023. The index is constructed in a manner that the 150 companies that comprise the index belong to different sectors and have different weights.

Understanding NIFTY Midcap 150

NIFTY Midcap 150 comprises 150 mid-sized companies in India, ranked between 101st to 250th based on their market capitalization. This index reflects the performance of these companies in the stock market. Investing in NIFTY Midcap 150 allows investors to participate in the growth of these companies, potentially yielding favorable returns over time.

The components of the NIFTY Midcap 150 index are selected from the broader NIFTY 500 Index, focusing on companies ranked between 101st to 250th in terms of market capitalization. Market capitalization is a crucial metric derived by multiplying a company's stock price by the total number of outstanding shares, including both actively traded shares and those held by promoters or the government.

The structure of the NIFTY Midcap 150 index ensures a diverse representation of mid-sized companies across various sectors, providing a comprehensive view of the market. It encompasses companies poised for growth and expansion, making it an appealing investment option.

How weightage of different companies and sectors in NIFTY Midcap 150 is decided?

The weightage of companies within NIFTY Midcap 150 is determined based on their free-float market capitalisation. The free-float market cap is calculated by multiplying a company’s stock price with the number of shares readily available in the market. Essentially, larger companies within the mid-cap segment receive a higher weightage. The same principle applies to sectors, their weightage is influenced by the combined market capitalization of their constituent companies.

Also read - What are multi-cap funds?

How to invest in the NIFTY Midcap 150 index?

To invest in the NIFTY Midcap 150 Index, you can consider various options, including:

  • Exchange-Traded Funds (ETFs): ETFs designed to replicate the performance of this index are traded on stock exchanges. You can buy these ETFs online through the Bajaj Finserv platform.

  • Mutual Funds: Some mutual funds aim to match the performance of the NIFTY Midcap 150 index. You can invest in these index funds directly through Asset Management Companies (AMCs) or through the Bajaj Finserv platform.

  • Direct Stock Investment: You can directly invest in the constituent companies of the index. However, this approach might require more research and analysis.

Frequently asked questions

Is it good to invest in Nifty Midcap 150?

Investing in NIFTY Midcap 150 can be beneficial for those seeking potentially higher returns with higher risk tolerance, as it comprises mid-sized companies with growth potential. However, suitability depends on individual financial goals and risk appetite.

What is Nifty Midcap 150?

NIFTY Midcap 150 is an index consisting of 150 companies ranked 101-250 based on full market capitalization from the NIFTY 500 Index.

What is the difference between Nifty 100 and Nifty Midcap 150?

The NIFTY 100 index comprises the top 100 companies in terms of total market cap from the NIFTY 500 Index, while the NIFTY Midcap 150 index comprises companies ranked from 101-250 based on full market capitalization from the NIFTY 500 Index.

What is the meaning of Nifty midcap index?

The NIFTY Midcap Index is a stock market index that tracks the performance of mid-cap companies ranked 101 to 150 listed on the National Stock Exchange (NSE).

What is the difference between NIFTY 500 and NIFTY Midcap 150?

NIFTY 500 comprises the top 500 companies in India, including large-cap, mid-cap, and small-cap stocks, while NIFTY Midcap 150 tracks the performance of the top 150 mid-cap companies specifically, which are smaller than those in the NIFTY 500.

What is the 5-year return of NIFTY Midcap 150?

The 5-year return of NIFTY Midcap 150 varies based on market conditions but typically reflects the performance of mid-cap stocks over that period, providing insight into the growth potential of mid-sized companies.

Is mid-cap good for long term?

Mid-cap investments can be suitable for long-term goals, offering higher growth potential than large-cap stocks but with greater volatility. However, they require a higher risk tolerance and a longer investment horizon to withstand market fluctuations and realise potential returns.

What is the lot size of NIFTY Midcap 150?

The lot size of NIFTY Midcap 150 refers to the minimum number of shares that can be bought or sold in a single transaction, which varies depending on the brokerage and exchange regulations.

Is it safe to invest in mid-cap?

Investing in mid-cap stocks carries higher risk due to their greater volatility and sensitivity to market fluctuations compared to large-cap stocks. While mid-cap investments can offer higher growth potential, they require careful consideration and a diversified portfolio to manage risk effectively.

What is the full form of mid-cap?

The full form of mid-cap is "middle capitalisation," referring to companies with market capitalisation between large-cap and small-cap stocks. These companies typically have moderate market values and are considered to be in the middle range of the stock market.

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