Nifty Midcap 100

Investing in the Nifty Midcap 100 index provides investors with exposure to a diverse range of mid-sized companies that have the potential for growth. Mid-cap stocks are often considered to be in a sweet spot between small-cap and large-cap stocks, offering growth opportunities with less volatility compared to small-cap stocks.

The objective of the Nifty Midcap 100 index is to track the performance of mid-sized companies listed on the National Stock Exchange (NSE) of India. By providing a benchmark for mid-cap stocks, the index helps investors assess the performance of mid-cap companies and make informed investment decisions.

Several factors can influence the performance of the NIFTY Midcap 100 index, including macroeconomic trends, industry-specific factors, company earnings, investor sentiment, and market liquidity. Changes in these factors can impact the stock prices of mid-cap companies included in the index and consequently affect the overall performance of the index.

The Nifty Midcap 100 index is evaluated periodically to ensure that it accurately reflects the performance of mid-sized companies listed on the NSE. The index is typically reviewed and rebalanced on a semi-annual basis to incorporate any changes in the constituent stocks or their market capitalization.

The top 100 mid-sized companies listed on the NSE, (based on their market capitalisation), are included in the Nifty Midcap 100 index. To be included in the index, stocks must be listed on the National Stock Exchange. All companies from the Nifty Midcap 50 are included in the index, by default.

Additionally, securities from the Nifty Midcap 150 are considered if they rank among the top 70 constituents by average daily turnover. Securities ranking below 130 or excluded from the Nifty Midcap 150 are excluded. Equities with differential voting rights are eligible, but those providing fixed returns, such as convertible stock, preferred stock, warrants, and rights, are also excluded.

Various factors affect the Nifty Midcap 100 index:

Market capitalisation of stocks determines individual stock valuation and weightage. Foreign investors' ownership impacts market outlook and liquidity. The number of listed companies affects index breadth and diversity. Fuel price volatility impacts operating expenses and profitability. Industrial production data reflects economic activity, influencing sectoral composition. Government stability and performance contribute to investor confidence. Gross Domestic Product (GDP) data indicates overall economic health. Interest rates affect borrowing costs and profitability, impacting midcap stock prices.

Changes in these factors can influence the stock prices of mid-cap companies included in the index and affect its overall performance.