NIFTY SMALLCAP 50 (NIFTY SMALLCAP 50) live share price today at NSE

The Nifty Smallcap 50 index includes the top 50 companies. The data of these top 50 companies is calculated based on the average of 6 months chosen from the free-float market capitalisation. Firstly, there is a selection of 150 companies based on their daily average market capitalisation. Then, companies from the Nifty Smallcap 250 index will be selected based on the average of the past six months. At last, these Nifty Smallcap 50 companies are selected from the data based on the daily average market capitalisation in the previous six months.

There is a total range of 16 sectors in the Nifty Smallcap 50 Index. Some of the names from these sectors include Information Technology (IT), Financial Services, Telecommunications, Chemical Industry, and many more.   

All the above sectors are innovative in their own way and well-positioned in their respective industries. The Nifty Smallcap 50 is backed by high-growth companies of this type, which is very beneficial for the stock market.

The top companies that comprise the Nifty Smallcap 50 are determined by their weightage. These companies include Multi-Commodity Index, Laurus Lab, and Delhivery Ltd, among others. The companies and their weights are represented in the table below: 

Company’s Name 

Weight (%)

Multi-Commodity Exchange of India Ltd.

5.89

Laurus Labs Ltd.

5.24

Central Depository Services (India) Ltd.

3.96

Delhivery Ltd.

3.77

Radico Khaitan Ltd.

3.49

Crompton Greaves Consumer Electricals Ltd.

3.31

Computer Age Management Services Ltd

2.77

Kaynes Technology India Ltd.

2.60

Navin Fluorine International Ltd

2.56

Amber Enterprises India Ltd

2.33

The stocks must meet specific eligibility criteria to maintain the quality and clarity in the Indian stock market. The segment of selection that influences the stocks can be based on their liquidity, market capitalisation rank, and low trading frequency in the past. 

• The stocks must be classified as small-cap and be listed on the National Stock Exchange (NSE).
• The stock must have been continuously trading for the past six months.
• It must contain a trading history of listing in the stock market, and if the segment of Futures and Options is available, then it must be trading on this segment.
• It must be ensured that the stock is selected effectively so that the Nifty Smallcap Index attracts the most traded top 50 stocks.
• The selection of the Nifty Smallcap 50 must be based on the free-float market capitalisation.
• If any kind of security is excluded from the 250 Nifty Cap, it 

can be replaced with another one.

• The security, which is newly listed on the stock exchange, must meet the eligibility criteria of 3 months instead of six months.

The calculation of the value of Nifty Smallcap 50 is done by using the free-float market capitalisation. The Free-Float market capitalisation refers to the aggregate value of the publicly traded shares on the stock market. The shares included in the free-float market capitalisation are freely traded shares, but exclude those held by the government, promoters, or investors. 

Nifty Smallcap Formula = Free Float Market Capitalisation/ ( Base market capitalisation* Index Value) 

The above formula helps in calculating the value of the Nifty Smallcap Index.

• Diversification: Investors can explore different types of stocks by investing in other sectors, as all the sectors of the Nifty Smallcap 50 Index are experiencing effective growth.
• Liquidity: Selecting adequate stocks leads to liquidity for all investors. It ensures that large investors will have the opportunity to invest in growing sectors.
• Transparency and low cost: The stocks on the NSE provide investors with transparency, building trust and reliability. The stocks are usually low-cost when investing in a large amount or a variety of stocks.      

• High-Volatility: As we know, there are 50 stocks, so there are more chances of price changes occurring quickly, regardless of the presence of other segments. 
• Sensitivity of the Market: The Nifty Smallcap 50 is influenced by factors such as economic, geographic, and other market conditions. 
• Business Risks: The fundamentals of small-cap companies are not as substantial, as they face significant market competition, regulatory changes, and economic instability. 

The Nifty Smallcap 50 Index is significantly used to analyse the performance of the top 50 small-cap companies, which are the most liquid and listed on the National Stock Exchange. The index is diversified across various sectors, including IT, Financial Services, Chemicals, and many others. The companies which are included in the Nifty Smallcap 50 shall be listed on the NSE and have been calculated based on the free-float market capitalisation. It also carries risks, such as economic and business risks, and exhibits high volatility due to its diversification across multiple sectors. Companies such as the Multi-Commodity Exchange of India Ltd., Laurus Labs Ltd., Delhivery Ltd., and Radico Khaitan Ltd. are the top constituents of the Nifty Smallcap 50.