The midcap segment in the stock market has been one of the most popular ones as it offers a comparatively higher return than the largecap stocks while keeping the risk profile in check when compared to the smallcap stocks.
Here in this article, we will be converting the nifty midcap 100, which is one of the most tracked indices in the midcap indices segment in India.
This article will cover the constituents of the index, methodology, performance, and risk analysis, and a lot more.
- NIFTY MIDCAP 100 Index – Overview & Constituents
- Selection Criteria
- Factors Affecting the NIFTY MIDCAP 100 Index
- NIFTY MIDCAP 100 Index Calculation Method
- Performance and Returns
- Risk and Volatility
- How to Invest in the NIFTY MIDCAP 100 INDEX?
- Top ETFs of Nifty Midcap 100
- Conclusion
- FAQs|NIFTY MIDCAP 100 Index
NIFTY MIDCAP 100 Index – Overview & Constituents
Nifty Midcap 100 is an index that captures the midcap segment’s movement in the Indian stock market. It is comprised of a hundred tradable midcap stocks listed on NSE.
Interesting facts about Nifty Midcap 100
- Nifty Midcap 100 represents 13% of the free float market capitalization of those listed stocks on the NSE as of 30 September 2024.
- In six months ended on 30 September 2024, the total traded value of the index’s constituents accounted for 21% of the total traded value of all the stocks listed on the exchange.
The constituents of the Nifty Midcap 100 index are as follows – (As of 8 January 2024)
| ACC Ltd. | Delhivery Ltd. | Kalyan Jewellers India Ltd. | Petronet LNG Ltd. |
| APL Apollo Tubes Ltd. | Dixon Technologies (India) Ltd. | L&T Finance Ltd. | Phoenix Mills Ltd. |
| AU Small Finance Bank Ltd. | Escorts Kubota Ltd. | LIC Housing Finance Ltd. | Polycab India Ltd. |
| Aditya Birla Capital Ltd. | Exide Industries Ltd. | Lupin Ltd. | Poonawalla Fincorp Ltd. |
| Aditya Birla Fashion and Retail Ltd. | FSN E-Commerce Ventures Ltd. | MRF Ltd. | Prestige Estates Projects Ltd. |
| Alkem Laboratories Ltd. | Federal Bank Ltd. | Mahindra & Mahindra Financial Services Ltd. | Rail Vikas Nigam Ltd. |
| Apollo Tyres Ltd. | Fertilisers and Chemicals Travancore Ltd. | Mangalore Refinery & Petrochemicals Ltd. | SBI Cards and Payment Services Ltd. |
| Ashok Leyland Ltd. | GMR Airports Ltd. | Mankind Pharma Ltd. | SJVN Ltd. |
| Astral Ltd. | Godrej Properties Ltd. | Marico Ltd. | SRF Ltd. |
| Aurobindo Pharma Ltd. | HDFC Asset Management Company Ltd. | Max Financial Services Ltd. | Solar Industries India Ltd. |
| BSE Ltd. | Hindustan Petroleum Corporation Ltd. | Max Healthcare Institute Ltd. | Sona BLW Precision Forgings Ltd. |
| Balkrishna Industries Ltd. | Hindustan Zinc Ltd. | Mazagoan Dock Shipbuilders Ltd. | Steel Authority of India Ltd. |
| Bandhan Bank Ltd. | Housing & Urban Development Corporation Ltd. | MphasiS Ltd. | Sundaram Finance Ltd. |
| Bank of India | IDBI Bank Ltd. | Muthoot Finance Ltd. | Supreme Industries Ltd. |
| Bank of Maharashtra | IDFC First Bank Ltd. | NLC India Ltd. | Suzlon Energy Ltd. |
| Bharat Dynamics Ltd. | IRB Infrastructure Developers Ltd. | NMDC Ltd. | Tata Chemicals Ltd. |
| Bharat Forge Ltd. | Indian Bank | Oberoi Realty Ltd. | Tata Communications Ltd. |
| Bharti Hexacom Ltd. | Indian Hotels Co. Ltd. | Oil India Ltd. | Tata Elxsi Ltd. |
| Biocon Ltd. | Indian Overseas Bank | One 97 Communications Ltd. | Tata Technologies Ltd. |
| CG Power and Industrial Solutions Ltd. | Indian Renewable Energy Development Agency Ltd. | Oracle Financial Services Software Ltd. | Torrent Power Ltd. |
| Cochin Shipyard Ltd. | Indraprastha Gas Ltd. | PB Fintech Ltd. | Tube Investments of India Ltd. |
| Coforge Ltd. | Indus Towers Ltd. | PI Industries Ltd. | UPL Ltd. |
| Colgate Palmolive (India) Ltd. | JSW Infrastructure Ltd. | Page Industries Ltd. | Vodafone Idea Ltd. |
| Container Corporation of India Ltd. | Jubilant Foodworks Ltd. | Patanjali Foods Ltd. | Voltas Ltd. |
| Cummins India Ltd. | KPIT Technologies Ltd. | Persistent Systems Ltd. | Yes Bank Ltd. |
The top sectors by weightage (as of 31 December 2024)–
- Financial Services: 22.74%
- Capital Goods: 130.3%
- Information Technology: 9.27%
- Healthcare: 9.20%
- Automobile and Auto Components: 6.70%
The top ten stocks by weightage (as of 31 December 2024) –
- Max Healthcare Institute Ltd.: 3.03%
- Indian Hotels Co. Ltd.: 2.79%
- Suzlon Energy Ltd.: 2.67%
- BSE Ltd.: 2.61%
- PB Fintech Ltd.: 2.52%
- Dixon Technologies (India) Ltd.: 2.48%
- Persistent Systems Ltd.: 2.47%
- Coforge Ltd.: 2.33%
- Lupin Ltd.: 2.06%
- Federal Bank Ltd.: 1.77%
Selection Criteria
The stock selection criteria for the Nifty Midcap 100 include –
- All the constituents of Nifty Midcap 50 have to be included
- For the remaining 50 constituents, securities will be picked on the basis of ranking order as per average daily turnover. The rank has to be up to 70 within the Nifty Midcap 150 constituents.
- Finally, the securities are to be excluded from the index calculation if their rank comes below 130 in the Nifty Midcap 150 constituent list as per average daily turnover, or if the stock is not present in the Nifty Midcap 150 index only.
Factors Affecting the NIFTY MIDCAP 100 Index
The factors, which affect the Nifty Midcap 100, the most include –
- Market sentiment: Midcap stocks are volatile and thus market sentiment affects the prices the midcap stocks significantly. This in turn affects the nifty midcap index. If the market is having a sluggish outlook, the performance of the index can go down for the same period and beyond, and if the outlook seems bright, the index can jump significantly as the midcap stocks constituting the index start gaining usually.
- Financial reports: When the constituent companies of the nifty midcap index announce their financial returns, the index becomes volatile. When the financial results of the constituting stocks or midcap stocks in general are positive, then the index gains, and vice versa.
- Corporate announcements: If the companies, which form the Nifty Midcap 100 get some new orders, crack some deal, or anything positive comes the way, the corporate announcement can boost the market sentiment, and the stock prices of those companies can move up taking the index higher. However, if something negative is announced, then the stock price of the constituent company may drag the index down as well.
NIFTY MIDCAP 100 Index Calculation Method
Nifty Midcap 100 index value is calculated using the free-float market capitalization method.
- The current market price of the 100 stocks of the index is multiplied by the number of free-float shares, which excludes shares held by promoters, government, trusts, etc. This results in the weighted market cap of the stocks.
- Then weighted market capitalization of all 100 stocks is taken into account and summed up.
- Then the result is divided by the base period market capitalisation to derive the index value.
Nifty Midcap 100 Index Value = (Current Market Cap or Weighted Market Cap/ Base Market Cap) *1000
Performance and Returns
Nifty Midcap 100 has been performing consistently and offering significant returns to investors. Here is a snapshot of the index’s performance –
Price Returns
YTD: 23.86%
1 Year: 23.86%
5 Year: 27.31%
Since inception: 20.18%
QTD: -5.23%
Total Returns
YTD: 24.52%
1 Year: 24.52%
5 Year: 28.37%
Since Inception: 21.83%
QTD: -5.17%
Enjoy investing in the top stocks of the Nifty universe with the NIFTY MIDCAP 100 index on Shoonya App!
Risk and Volatility
The midcap segment has a significant amount of risk, which needs to be taken care of wisely. This in turn indicates the risk involved in the midcap index as well.
The standard deviation of the index for 1 year stands at 18.67 while that for 5 years stands at 20.55 and since inception, it is as high as 21.79. The high standard deviation indicates the volatility quotient of the index that the index can run on either side with a significant difference.
The index also has a higher Beta of 1.07 compared to the Nifty 50, which makes it more volatile than the Nifty 50 index in the past year. However, if you look at the five years and Beta since inception then it was lower compared to Nifty. The correlation with the Nifty 50 stands at 0.80 in the past year, and it was 0.84 and 0.85 in five years since inception.
How to Invest in the NIFTY MIDCAP 100 INDEX?
You can invest in the Nifty Midcap 100 Index using ETFs, or index funds, or you can trade them on the trading platform. You can also trade Nifty Midcap 100 futures, and options in the F&O section of Shoonya’s app. To do so, you have to add the index to your watchlist following these steps –
- Open the Shoonya app.
- Head to the “Watchlist” tab located at the bottom of your screen.
- In the search bar, type “NIFTY IN” or “SENSEX IN” and add it to the watch list, and then you will be able to see the indices.
- Once you find your desired index, click on the add option given on the right side.
- Now you can see the index on the watchlist.
Top ETFs of Nifty Midcap 100
Nifty Midcap 100 is used as a benchmark for multiple index funds, ETFs, and here are some of the popular ones –
- LIC MF Nifty Midcap 100 ETF
- Motilal Oswal Nifty Midcap 100 ETF
Conclusion
Are you exploring the midcap segment? If yes, then this article can be of great help as it has analyzed the most popular index in the segment which is the Nifty Midcap 100 index. Before proceeding with any investment, make sure you analyze all the returns, and risks associated with the index.
FAQs|NIFTY MIDCAP 100 Index
NIFTY MIDCAP 100 index is a free-float market capitalization index. Free float market cap represents the market capitalization excluding the stocks held by promoters, government, trusts, and other similar organizations.
Nifty Midcap 100 is rebalanced twice a year. The cut-off date for the same are 31 January and 31 July.
The current PE of the NIFTY MIDCAP 100 index is 42.90.
The Nifty Midcap 100 index was launched on July 18, 2005.
The base value used for index calculation is 1000.
Source: ValueResearch
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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.