NIFTY MIDCAP 50

The main objective of the NIFTY Midcap 50 Index is to capture the movement of the midcap segment of the market. Also, it mainly includes the top 50 companies that are based on full market capitalization from NIFTY Midcap 150 index and even on which derivative contracts are available on the National Stock Exchange (or NSE). Also, in case 50 midcap stocks do not have derivatives contracts available on them, then it can also have less than 50 stocks in the index. Here's the Market Representation:

• In this, it represents about 6% of the free-float market capitalization of the stocks listed on NSE as of March 29, 2019.
• Also, the total traded value for the last six months ending March 2019, of all index constituents, is about 13.3% of the traded value of all stocks on NSE.

Also, the NIFTY Midcap 50 Index can be computed using the market capitalization-weighted method since the launch date until February 25, 2010.

Index Methodology:

Some of the Eligibility Criteria for the Selection of Constituent Stocks:

• It is vital to be considered for inclusion in the NIFTY Midcap 50 Index, and the companies must form part of the NIFTY Midcap 150.
• Also, the securities will be included if the rank of any F&O constituent in NIFTY Midcap 150 based on full market capitalization is among the top 30.
• The securities will be included if full market capitalization of any F&O constituent in the NIFTY Midcap 150 about 1.50 times of the last constituent in NIFTY Midcap 50.
• Also, the securities will be excluded if rank based on full market capitalization falls below 70 among the F&O constituents in NIFTY Midcap 150.
• Also, the securities will be excluded if it is excluded from NIFTY Midcap 150 or is excluded from F&O segment of NSE
• Also, the eligibility criteria for newly listed security are checked based on the data for 3 months instead of 6 months.

Index Re-Balancing: It is done based on a semi-annual basis, and the cut-off date is January 31 as well as July 31 of each year, i.e., and for a semi-annual review of indices, average data for 6 months ending the cut-off date is considered. Also, 4 weeks before the notice is given to the market from the date of the change. Index Governance: Also, a professional team manages all NSE indices, and there is a three-tier governance structure, which comprises the Board of Directors of NSE Indices Limited, the Index Advisory Committee (Equity) and the Index Maintenance Sub-Committee.