Nifty Midcap 150

What is NIFTY Midcap 150?

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.

Nifty Midcap 150 Stocks Selection Criteria

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:

1. It will be listed on the National Stock Exchange.
2. Will form a part of NIFTY 500’s constituents and have an investable weight factor (IWF) of at least 0.10 (10% free float).
3. Will include securities from NIFTY 500 if they feature among the top 225 constituents on the basis of full market capitalisation.
4. Will include securities if their full market capitalisation is at least 1.5 times the last constituent’s full market capitalisation in NIFTY Midcap 150.
5. Will exclude securities if they feature below 275 among NIFTY 500’s constituents on the basis of full market capitalisation.
6. Will exclude securities if they are removed from NIFTY 500.
7. Will judge newly listed securities on the basis of three-month period data instead of six-month period data.

How is Nifty Midcap 150 Calculated?

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.