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About NIFTY Midcap 50


NIFTY Midcap 50 is a share market index that represents the performance of the mid-cap companies of the Indian market. It is part of the NIFTY Index family which is managed and owned by the National Stock Exchange (NSE).

The index includes the 50 most liquid and large-capitalised mid-cap stocks listed on the NSE. Mid-cap stocks represent companies with medium market capitalisation, between large-cap and small-cap stocks. Investors use the index as a benchmark to measure the performance of mid-cap companies in the Indian equity market.


What is the NIFTY Midcap 50 Index?


The main purpose of the NIFTY Midcap 50 Index is to track the movements within the midcap section of the Indian market. It comprises the top 50 companies selected based on their total market capitalisation from the NIFTY Midcap 150 index. The stocks for which derivative contracts are available on the NSE are preferred.

The NIFTY Midcap 50 Index reflected approximately 7% of the free float market capitalisation of stocks listed on the NSE, as of September 29, 2023. Over the last six months leading up to September 2023, the combined traded value of all index constituents held approximately 9.6% of the total traded value of all stocks on the exchange.


Sector-Wise Representation


Financial services held the highest weightage at 28.51%, followed by capital goods at 12.25% as the year 2023 ended. Information technology had a weightage of 10.61% and healthcare accounted for 9.61%. Oil, gas and consumable fuels constituted 5.57% and consumer services held a weightage of 5.18%.

The automobile and auto components sector contributed significantly with a 4.02% weightage and telecommunications followed closely with 3.96%. Other sectors included metals and mining at 3.60%, realty at 3.42% and construction materials at 3.08%. Sectors such as consumer durables (2.83%), media, entertainment and publication (2.18%), textiles (2.03%), services (2.03%), and fast-moving consumer goods (1.14%) also contributed significantly.


Companies and Weightage


The NIFTY Midcap 50 Index include a range of companies, as of December 2023. Notable names included Power Finance Corporation Limited, holding a weightage of 4.78%. REC Limited was represented with a 4.39% weightage, and Indian Hotels Company Limited contributed with 3.32%. Coforge Limited and Persistent Systems Limited held weightages of 3.29% and 3.27%, respectively.

AU Small Finance Bank Limited had a weightage of 3.26%. Federal Bank Limited and IDFC First Bank Limited were also part of the index, contributing with weightage of 3.01% and 2.91% respectively. HDFC Asset Management Company Limited and Lupin Limited played integral roles in the index with weightage of 2.77% and 2.74% respectively, as the year 2023 ended.


Selection Criteria


To be included in the NIFTY Midcap 50 index, companies must meet the following criteria:
  • Listing on the National Stock Exchange.
  • Inclusion in the NIFTY Midcap 150 index.
  • Futures and Options (F&O) constituent ranks among the top 30 based on full market capitalisation in NIFTY Midcap 150.
  • F&O constituent’s full market capitalisation is 1.5 times the last constituent in NIFTY Midcap 150.
  • Exclusion if the rank based on full market capitalisation falls below 70 among NIFTY Midcap 150’s F&O constituents.
  • Exclusion if replaced from NIFTY Midcap 150 index.
  • Verification of a newly listed security's eligibility based on three months of data instead of six months.
  • Inclusion of securities ranked in the top 30 among non-F&O stocks from NIFTY Midcap 150 if there are insufficient F&O stocks available.
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