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NIFTY LargeMidcap 250 is a broad-based index on the National Stock Exchange (NSE) that captures the behaviour and performance of the large cap and mid-cap segments of the equities market. It is a diversified blend of 250 stocks which includes 100 large cap stocks from NIFTY 100, while the remaining 150 stocks are selected from the NIFTY Midcap 150 index, with both indexes weighed at 50:50 basis.
The NIFTY LargeMidcap 250 stocks account for over 87% of the full market capitalisation and ~78% of the average daily turnover of all the NSE-listed stocks. These stocks span 19 sectors of the economy. including Financial Services, Oil, Gas & Consumable Fuels, IT, Capital Goods, Healthcare, Automobile & Auto Components, FMCG, Consumer Durables, Chemicals, Power, Consumer Services, Metals & Mining, Construction Materials, Telecom, Realty, Services, Construction etc.
This NIFTY LargeMidcap 250 index was launched on November 30, 2017, with the base date set to April 1, 2005, and the base value at 1000. The NIFTY LargeMidcap 250 share price since inception has breached the levels of 9,000 at 21x P/E multiples. It is reconstituted semi-annually with weights being capped at 50% each for both large cap and mid cap stocks and rebalanced on a quarterly basis.
The NIFTY LargeMidcap 250 index is owned and managed by NSE Indices Limited, previously known as India Index Services & Products Limited. This index is governed by a three-tier structure that comprises the BOD of NSE Indices Limited, the Index Advisory Committee (Equity) and the Index Maintenance Sub-Committee.
NIFTY LargeMidcap 250 has an index variant in the name of NIFTY LargeMidcap 250 Total Returns Index. This index is ideal for launching index funds, ETFs, and structured products. It is also suitable to be used for benchmarking fund portfolios by AMCs.
The NIFTY LargeMidcap 250 share price is computed by weighting its 250 stocks based on periodic capped free-float market capitalisation relative to a particular base market capitalisation value on a real-time basis.
The eligibility criteria below must be met by the constituent stocks in order to be included in the NIFTY LargeMidcap 250 index:
The index value is calculated as follows –
Index value = Current free float market capitalisation/ (Base free float market capitalisation * Base Index Value)
The NIFTY LargeMidcap 250 index is reviewed semi-annually based on six months of data, with the cutoff date being January 31 and July 31 of each year. The replacement of stocks in NIFTY LargeMidcap 250 (if any) is implemented from the last trading day of March and September after giving four weeks prior notice to the market.