Nifty Midcap 100

The Nifty Midcap 100 is a stock market index in India that represents the performance of mid-sized companies listed on the National Stock Exchange (NSE). It focuses specifically on companies that fall within the mid-cap category, meaning they have a market capitalisation between the large-cap and small-cap segments. As an investor, you can use the Nifty Midcap 100 index as a benchmark to assess the overall performance of the mid-cap stocks in your equity portfolio.

The Nifty Midcap 100 comprises the top 100 mid-cap companies listed on the National Stock Exchange (NSE). These companies are often considered to have significant growth potential and are expected to be in a phase of expansion and development. 

The Nifty Midcap 100 Index uses a method known as free-float market capitalisation to determine its level. Let's break down what this means:

1. Floating Impact: This index looks at the market value of available shares for trading, leaving out those held by promoters or other restricted shares. It reflects the total market value of freely tradable stocks.
2. Significant Share: The Nifty Midcap 100 Index usually represents around 65% of the entire market's value. In simpler terms, it's a substantial chunk of the overall market.
3. Joining the Club: To be part of this index, a stock must be listed on the NSE and meet specific eligibility criteria. It's like a club where only certain mid-sized stocks are invited.
4. Emphasis on Quality: The stocks in the Nifty Midcap 100 aren't randomly picked. They are chosen based on factors like strong liquidity, ensuring the index includes companies actively traded in the market.

To determine how important each company is in the index, you divide its value by the total value of all companies. This helps ensure that the NIFTY Midcap 100 shows each company's importance based on its market value.

The weightage of individual stocks within the Nifty Midcap 100 index is determined by their market capitalisation relative to the total market capitalisation of all stocks comprising the index. The table provided below illustrates the weightage of the top 10 stocks included in the Nifty Midcap 100 index as of January 2024:

Yes. You can trade in Nifty Midcap 100 through derivatives, including Futures and Options (F&O). The prices of these F&O contracts are linked to the performance of the stocks included in the Nifty Midcap 100 index.
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The stocks for the Nifty Midcap 100 index are selected based on factors such as market capitalisation, average daily turnover, and availability for trading in the Futures and Options (F&O) segment.  The weightage of the stocks is determined based on the free float market capitalisation methodology. Furthermore, a company must have a market capitalisation of at least Rs. 5000 crores to be included in the Nifty Midcap 100 index. 

The closing value of the Nifty Midcap 100, like other stock market indices, is ascertained by computing a weighted average of the closing prices of its component stocks. This computation entails adding up the closing prices of all the constituent stocks and applying their respective weights determined by market capitalisation. Subsequently, the derived sum is divided by the index's divisor, yielding the final closing price.
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The Nifty Midcap 100 measures the performance of the top 100 mid-cap stocks listed on the National Stock Exchange (NSE). Therefore, it’s not possible to trade directly in this index. However, you can buy or sell the Futures and Options (F&O) contracts with the Nifty Midcap 100 as the underlying index or invest in index funds designed to replicate the portfolio and performance of Nifty Midcap 100. 
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