Nifty MidSmallcap 400

What is NIFTY MidSmallcap 400?

The NIFTY MidSmallcap 400 is a broad-based index on the National Stock Exchange (NSE) that captures the movement in the midcap and smallcap segments of the equities market. MidSmallcap 400 is a diversified index of 400 stocks, with 150 companies from NIFTY Midcap 150 index and the remaining 250 from the NIFTY Smallcap 250 index. These stocks span 21 sectors of the economy, with Financial Services, Capital goods, Healthcare, Chemicals, and IT together constituting more than half (~54%) of the index.

The NIFTY MidSmallcap 400 index captures almost 19.3% of float-adjusted market capitalization on NSE. For the last six months, the total traded value of all index constituents is approximately 30.3% of the traded value of all stocks on NSE.

This MidSmallcap 400 index was launched on April 01, 2016, with the base year set to 2005 and the base value at 1000. Since then, the NIFTY MidSmallcap 400 share price has breached the levels of 9,000 at ~21P/E multiples. It is reconstituted on a semi-annual basis.

The MidSmallcap index is managed by NSE Indices Limited, previously known as India Index Services & Products Limited. It 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 MidSmallcap 400 has an index variant in the form of the NIFTY MidSmallcap 400 Total Returns Index. This index is ideal for benchmarking fund portfolios as well as for launching index funds, ETFs, and other structured investment products.

How is NIFTY MidSmallcap 400 Calculated? How Are Stocks Selected for inclusion in NIFTY MidSmallcap 400?

The NIFTY MidSmallcap 400 share price is computed by weighing its 400 stocks on the basis of free-float market capitalization relative to a particular base market capitalization value on a real-time basis.

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 Midcap 150 and NIFTY Smallcap 250 index constituents.
3. If changes are made to NIFTY Midcap 150 and NIFTY Smallcap 250, index constituents will include securities.
4. Will exclude securities if NIFTY Midcap 150 and NIFTY Smallcap 250 index constituents are replaced.
5. Will judge newly listed securities based on three-month period data instead of six-month period data.

The index value is calculated as follows –

Index value = Current free float market capitalization/ (Base free float market capitalization * Base Index Value)

The NIFTY MidSmallcap 400 index is reviewed semi-annually based on six months of data ending January and July in conjunction with changes made to the NIFTY Midcap 150 and NIFTY Smallcap 250 index. The replacement of stocks in NIFTY MidSmallcap 400 (if any) is implemented from the last trading day of March and September.