Nifty Midcap 50 Performance - Today's Prices & Analysis

Sector Representation

NIFTY Midcap 50 provides a representative benchmark for investments in top mid-cap companies in India. The selection of securities and weights are based on free float market capitalization. When it comes to sector-wise representation of the index, the financial services sector tops the list at 26.37% followed by Pharma at 11.25% and Energy at 10.27%. RBL Bank Ltd. holds the highest weightage at 5.4% followed by Federal Bank Ltd. at 4.10% and Page Industries Ltd. at 4.01%.

Eligibility Criteria

According to the NIFTY market indices methodology document, which is published by the India Index Services & Products Limited, the following are the eligibility criterias to be fulfilled by the companies to become a part of the NIFTY Midcap 50 index:

1. In order to be taken into consideration to be included in NIFTY Midcap 50 Index, companies must form a part of NIFTY Midcap 150.
2. The stocks will be included in the index, if the rank of any Futures & Options (F&O) constituent in NIFTY Midcap 150, which is based on full market capitalisation is among top 30.
3. The stocks will be included if the full market capitalisation of any F&O constituent in NIFTY Midcap 150 is twice of the last constituent in NIFTY Midcap 50.
4. The stocks which cannot be included in the index if rank based on full market capitalisation falls below 70 among the F&O constituents in the NIFTY Midcap 50.
5. Securities will be excluded if it is not a part of NIFTY Midcap 150 or are excluded from F&O segment of NSE.
6. In case of the newly-listed shares, the eligibility criteria is checked based on the data for a 3-month period instead of a 6-month period.

How is NIFTY Midcap 50 calculated?

The NIFTY Midcap 50 falls in the broad indices and is calculated online on all days that the National Stock Exchange of India is open for trading in equity shares and disseminated through trading terminals and websites. Constituent changes in the index along with corporate actions like right issuance, stock splits etc. are taken into consideration at the time of calculating the index. As NIFTY Midcap 50 is included in the broad based indices, it is reviewed twice every year based on six month data ending January 31 and July 31. The average data for 6 months ending the cut-off date is considered in order to review indices semi annually.

The NIFTY Midcap 50 is calculated based on the following formula:

Free Float Market Capitalisation = Shares Outstanding x Price x Investible Weight Factor (IWF)

Index Value = [(Current Free Float Market Capitalisation)/(Base Free Float Market Capitalisation)] x (Base Index Value)

Investible Weight Factor means the number of shares which are available to the public for general trading. These shares are not held by groups or entities which have strategic or a controlling interest in the company. Higher the IWF, greater is the proportion of shares held by the investors under the public category.

Factors affecting NIFTY Midcap 50

1. Inflation
2. Fluctuations in Oil Prices
3. Presidential elections
4. Fuel price volatility
5. Interest Rates
6. International Markets
7. Gross Domestic Product Data
8. Natural disasters
9. Gold Prices
10. Stability and performance of the government
11. Industrial Production Data

How to Invest in NIFTY Midcap 50?

You can invest in individual stocks that are a part of NIFTY Midcap 50. In order to get started to invest in stocks, you will need to open a DEMAT account and join any of the numerous online stock brokers. Alternately, you can also look into mutual funds and index funds to invest your money. However, it is strongly advised to do a thorough research before investing your hard-earned money in stock markets as it is volatile in nature.

Stocks vs. Mutual Funds: Here's What We Recommend

Stock market investments require a lot of research and knowledge. They do not generally offer any tax benefits and are regarded as high-risk investments. Hence,it is crucial to have a diversified portfolio. At Bankbazaar, we encourage our readers to invest on mutual funds.It doesn't require a lot of knowledge and equity linked mutual fund schemes offer tax benefits. Additionally, since mutual funds comprise stocks from multiple companies, they help in building a diversified portfolio.