Nifty Midcap 50
The medium capitalized segment of the stock market is being increasingly perceived as an attractive investment segment with high growth potential. The primary objective of the Nifty Midcap 50 Index is to capture the movement of the midcap segment of the market. It can also be used for index-based derivatives trading.
Method of computation
Nifty Midcap 50 is computed using free float market capitalisation weighted method, wherein the level of the index reflects the total market value of all the stocks in the index relative to a particular base period. The method also takes into account constituent changes in the index and importantly corporate actions such as stock splits, rights, etc without affecting the index value. The Nifty Midcap 50 Index has a base date of Jan 1, 2004 and a base value of 1000.
- The Nifty Midcap 50 Index represents about 5.66% of the free float market capitalization of the stocks listed on NSE as on March 28, 2013.
The total traded value for the last six months ending March 2013. of all index constituents is approximately 15.81% of the traded value of all stocks on NSE.
* Nifty Midcap 50 Index was computed using market capitalization weighted method from the launch date till February 25, 2010.
Criteria for Selection of Constituent Stocks
The constituents and the criteria for the selection judge the effectiveness of the index. Selection of the index set is, inter alia, based on the following criteria:
- Stocks with average free float market capitalization ranging from 1000 Crore to 5000 Crore at the time of selection.
- Stocks which are not part of the derivatives segment are excluded.
- Stocks which are forming part of the CNX NIFTY index are excluded.