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The NIFTY Midcap 150 is a broad-based index on the National Stock Exchange (NSE) that captures the movement in the midcap segment of the equities market. Midcap 150 is a diversified index of 150 stocks ranked from 101-250 in the NIFTY 500 universe on the basis of full market capitalisation. These stocks span 18 sectors of the economy, with Financial Services, Capital goods, Healthcare, Oil, Gas & Consumable Fuels, and Chemicals together constituting 55% of the index.
The NIFTY Midcap 150 index captures almost 16.9% of float-adjusted market capitalisation on NSE and averages over Rs. 131 crores in constituent turnover. For the last six months, the total traded value of all index constituents is approximately 19.3% of the traded value of all stocks on NSE.
This Midcap 150 index was launched on April 01, 2016, with the base year set to 2005 and the base value at 1000. Since then, the NIFTY Midcap 150 share price has breached the levels of 10,000 at ~22P/E multiples. It is reconstituted semi-annually in order to ensure that it continues to reflect the changing dynamics of the Indian financial markets and the economy.
The Midcap 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 Midcap 150 index has a variant in the form of the NIFTY Midcap 150 Total Returns Index. This index is ideal for benchmarking fund portfolios as well as for launching of index funds, ETFs, and other structured products.
The NIFTY Midcap 150 share price is computed by weighing its 150 stocks on the basis of free-float market capitalisation relative to a particular base market capitalisation value. Free float refers to the shares which are not held by promoters and are readily available to the public for trading.
The constituent stocks need to meet the following eligibility criteria:
The Nifty Midcap 150 value is calculated as follows –
Index value = Current free-float market capitalisation/ (Base free-float market capitalisation * Base Index Value)
The NIFTY Midcap 150 index is reviewed semi-annually based on six months of data ending January and July. The replacement of stocks in NIFTY Midcap 150 (if any), subject to a maximum of 15 in a given year, is implemented from the last trading day of March and September.