NIFTY MIDCAP 100 (NIFTY MIDCAP 100) live share price today at NSE
What Is The Nifty Midcap 100 Index?
The Nifty Midcap 100 Index is a broad-based index launched by the NSE Indices Limited on 18th July 2005. The index primarily aims to track the top 100 NSE-listed Indian midcap companies having a market capitalisation between 5,000 to 20,000 crores. This index operates under the Nifty brand and investors who want to track its movement through the National Stock Exchange.
- The Nifty Midcap 100 Index tracks the performance of the top 100 midcap stocks.
- It provides a comprehensive and real-time view of the behaviour of the midcap segment.
- It was launched on 18th July 2005 by the NSE Indices Limited.
Which Stocks Are Included In The Nifty Midcap 100 Index?
As the name suggests, the Nifty Midcap 100 Index includes stocks of companies that fall under the midcap category on the stock market. The constituents of this index fall between large and small-cap companies and carry moderate risk and substantial growth prospects.
The Nifty Midcap 100 Index does not cover all the NSE-listed midcap stocks; it tracks only the top 100 midcap companies, which are ranked and assigned specific weights within the index.
- The Nifty Midcap 100 Index stocks have a market cap from 5000 to 20,000 crores.
- The constituents of the index have moderate risk and great growth potential.
How is the Nifty Midcap 100 index calculated?
The Nifty Midcap 100 Index is calculated using the free float market capitalisation method. Under this method, the index value represents the aggregate free float market cap of its constituents relative to the base index value and base market capitalisation.
The formula for calculating the index value is:
Index Value = Current free float market cap/(base market cap*base index value)
The Nifty Midcap 100 Index also goes through a semi-annual review, the cutoff dates for which are 31st January and 31st July. For this semi-annual review, the average date for the past six months is taken into consideration, and a four-week prior notice is given to the market from the date of change.
Eligibility for Selection of the Nifty Midcap 100 Constituents:
- The stock must be listed on the National Stock Exchange (NSE) of India.
- All the stocks included in the Nifty Midcap 50 must form a part of the Nifty Midcap 100 Index.
- Constituents other than Nifty 50 are selected if their ranks from the Nifty 150 fall in the top 70 based on their average daily turnover.
- Securities will be excluded if they are ranked below 130 among Nifty Midcap 150 constituents based on their average daily turnover and also if stocks are removed from the Nifty Midcap 150 Index.
Key Takeaways On Nifty Midcap 100 Index
- The Nifty Midcap 100 Index is a broad-based index of the NSE launched on 18th July 2005.
- The index represents the midcap segment of the stock market by tracking the performance of the top 100 listed midcap companies.
- The constituents of the Nifty Midcap 100 Index fall under the midcap segments and have a market cap between 5,000 and 20,00 crores.
- The index is constituted using the free float market capitalisation method and is reviewed semi-annually on the cutoff dates: 31st January and 31st July.
FAQs
What are midcap stocks?
Midcap stocks refer to stocks of those companies that fall under the midcap category and have a market cap of 5,000 crores to 20,000 crores. These stocks lie between the large and small cap categories. The underlying companies of these stocks are in their growth stage and tend to showcase good operational efficiency and profitability along with moderate risk.
What is the sectoral representation of the Index?
The Nifty Midcap 100 Index covers 18 key sectors of the economy. Out of these 18 sectors, the financial service sector holds the command with a 23.05% weightage, followed by Capital Goods (13.65%), Information Technology (8.89%), Healthcare (8.48%) and Automobile and Auto Components (6.99%).
Which are the top 5 constituents of the Midcap 100 index?
The top 5 constituents of the Nifty Midcap 100 Index according to weightage are:
- Suzlon Energy (2.78%)
- Max Healthcare Institutes Ltd. (2.71%)
- Indian Hotels Co. Ltd. (2.59%)
- BSE Ltd. (2.36%)
- Persistent Systems Ltd. (2.34%)
How can I invest in the Nfity Midcap 100 index?
You can invest in the Nifty Midcap 100 Index by two of the following methods:
Direct Stock Selection - You can invest in the Nifty Midcap 100 Index by manually investing in each of the 100 constituents of the index. To replicate the performance of the index, you have to invest in its constituents in the same manner as they are present in the index. An important point to note here is that this method is very complex and capital-intensive. Therefore, you must choose this method if you have the required skills and capital for investment.
Index funds and Exchange Traded Funds (ETFs) - Index funds and exchange traded funds are passive investment vehicles that are benchmarked with an index and provide returns similar to that of the benchmarking index. Therefore, if you prefer a risk-averse investing strategy and expect to make good returns, you can invest in the Nifty Midcap 100 Index through these investment vehicles.
What is market capitalisation?
Market capitalisation value refers to the aggregate value of all the company's outstanding shares. Market cap represents the market value of a company, and it is used extensively in the financial sector during takeover attempts.
What is free float?
Free float or public float refers to that portion of a company’s outstanding shares that are freely available for trading on the secondary market. Free float does not include restricted shares or shares held by the government.