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.
|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|
|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|
|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|
|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|
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%.
|Cement and Cement Products||3.58|
|Media and Entertainment||1.54|
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
- 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.
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.