• Nifty Midcap 50

    NIFTY Midcap 50 is a stock market index designed and managed by the India Index Services and Products Limited. It comprises 50 diversified companies and is meant to monitor the behaviour of the midcap segment of the Indian market. The index is calculated using free float market capitalisation method.

    Companies listed on the NIFTY Midcap 50

    As of 31 May 2018, the 50 companies which comprise NIFTY Midcap 50 have been mentioned below. The companies include top 50 companies based on full market capitalisation from NIFTY Midcap 150 Index and on which derivative contracts are available on National Stock Exchange (NSE). In case 50 midcap stocks do not have derivatives contract available on them then it could have less than 50 stocks in the Index. Some of the popular utilisation of the NIFTY NEXT 50 index is to benchmark fund portfolios, launch Exchange Traded Funds (ETFs), index funds, and structured products.

    Indian Bank
    Symbol Name of the Company Industry
    ADANIPOWER Adani Power Ltd. ENERGY
    AJANTPHARM Ajanta Pharmaceuticals Ltd. PHARMA
    AMARAJABAT Amara Raja Batteries Ltd. AUTOMOBILE
    APOLLOHOSP Apollo Hospitals Enterprise Ltd. HEALTHCARE SERVICES
    APOLLOTYRE Apollo Tyres Ltd. AUTOMOBILE
    BALKRISIND Balkrishna Industries Ltd. AUTOMOBILE
    BANKINDIA Bank of India FINANCIAL SERVICES
    BERGEPAINT Berger Paints India Ltd. CONSUMER GOODS
    BHARATFORG Bharat Forge Ltd. INDUSTRIAL MANUFACTURING
    BIOCON Biocon Ltd. PHARMA
    CANBK Canara Bank FINANCIAL SERVICES
    CASTROLIND Castrol India Ltd. ENERGY
    CENTURYTEX Century Textile & Industries Ltd. CEMENT & CEMENT PRODUCTS
    CHOLAFIN Cholamandalam Investment and Finance Company Ltd. FINANCIAL SERVICES
    DHFL Dewan Housing Finance Corporation Ltd. FINANCIAL SERVICES
    DISHTV Dish TV India Ltd. MEDIA & ENTERTAINMENT
    DIVISLAB Divi's Laboratories Ltd. PHARMA
    ENGINERSIN Engineers India Ltd. CONSTRUCTION
    EXIDEIND Exide Industries Ltd. AUTOMOBILE
    FEDERALBNK Federal Bank Ltd. FINANCIAL SERVICES
    GMRINFRA GMR Infrastructure Ltd. CONSTRUCTION
    GLENMARK Glenmark Pharmaceuticals Ltd. PHARMA
    GODREJIND Godrej Industries Ltd. CONSUMER GOODS
    IDBI IDBI Bank Ltd. FINANCIAL SERVICES
    IDFCBANK IDFC Bank Ltd. FINANCIAL SERVICES
    IDFC IDFC Ltd. FINANCIAL SERVICES
    INDIANB Indian Bank FINANCIAL SERVICES
    IGL Indraprastha Gas Ltd. ENERGY
    JINDALSTEL Jindal Steel & Power Ltd. METALS
    M&MFIN Mahindra & Mahindra Financial Services Ltd. FINANCIAL SERVICES
    MRPL Mangalore Refinery & Petrochemicals Ltd. ENERGY
    MINDTREE MindTree Ltd. IT
    MUTHOOTFIN Muthoot Finance Ltd. FINANCIAL SERVICES
    NBCC NBCC (India) Ltd. CONSTRUCTION
    NATIONALUM National Aluminium Co. Ltd. METALS
    PCJEWELLER PC Jeweller Ltd. CONSUMER GOODS
    PAGEIND Page Industries Ltd. TEXTILES
    RBLBANK RBL Bank Ltd. FINANCIAL SERVICES
    RELINFRA Reliance Infrastructure Ltd. ENERGY
    RPOWER Reliance Power Ltd. ENERGY
    SRF SRF Ltd. TEXTILES
    TVSMOTOR TVS Motor Company Ltd. AUTOMOBILE
    TATACHEM Tata Chemicals Ltd. CHEMICALS
    TATAGLOBAL Tata Global Beverages Ltd. CONSUMER GOODS
    TATAPOWER Tata Power Co. Ltd. ENERGY
    RAMCOCEM The Ramco Cements Ltd. CEMENT & CEMENT PRODUCTS
    TORNTPHARM Torrent Pharmaceuticals Ltd. PHARMA
    UNIONBANK Union Bank of India FINANCIAL SERVICES
    UBL United Breweries Ltd. CONSUMER GOODS
    VOLTAS Voltas Ltd. CONSTRUCTION

    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%.

    Sector Weightage (%)
    Financial Services 26.37
    Consumer Goods 8.54
    Pharma 11.25
    Energy 10.27
    Automobile 11.74
    Construction 5.81
    Information Technology 2.71
    Industrial Manufacturing 3.91
    Textiles 5.20
    Cement and Cement Products 3.58
    Metals 3.52
    Chemicals 3.11
    Media and Entertainment 1.54
    Healthcare Services 2.44

    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:

    • In order to be taken into consideration to be included in NIFTY Midcap 50 Index, companies must form a part of NIFTY Midcap 150.
    • 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.
    • 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.
    • 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.
    • Securities will be excluded if it is not a part of NIFTY Midcap 150 or are excluded from F&O segment of NSE.
    • 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

    • Inflation
    • Fluctuations in Oil Prices
    • Presidential elections
    • Fuel price volatility
    • Interest Rates
    • International Markets
    • Gross Domestic Product Data
    • Natural disasters
    • Gold Prices
    • Stability and performance of the government
    • 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.

    DISCLAIMER:

    The contents of this post/blog does not constitute financial or other professional advice nor does it imply in any manner a principal-agent relationship, and is not a professional advice on a specific financial matter.

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