Nifty MidSmall Healthcare

Nifty MidSmall Healthcare Index

The National Stock Exchange (NSE) launched four new indices for the cash, futures & options segment divisions on April 3, 2024 effective from April 8. 

The Nifty Tata Group 25% Cap, Nifty500 Multicap India Manufacturing 50:30:20, Nifty500 Multicap Infrastructure 50:30:20, and Nifty MidSmall Healthcare are some of the indices that will be released on the Nifty Healthcare index. 

The Indices and their broadcast names of Nifty Healthcare stocks are displayed in the following table:

The exchange declared its decision and highlighted that F&O members will be able to access the indices’ broadcast using NEAT+terminals, only through the multiple index inquiry screen released on a circular on Wednesday. 

The NSE’s action shows its dedication to growing the range of index offerings and improving market participants’ accessibility. 

Performance monitoring by Nifty MidSmall Healthcare

The performance of mid-cap and small-cap stocks in the healthcare industry is monitored by the Nifty MidSmall Healthcare Index. 

Stocks must either be now included in the Nifty MidSmallcap 400 index or be headed towards inclusion. The 30 stocks are chosen based on their market capitalization in free float within the sector as per their availability on Nifty Healthcare share price. 

The free-float market capitalization of each stock determines its weight in the index. The combined weight of the top three stocks cannot be greater than 62%, and no one stock’s weight can be greater than 33% while rebalancing.

Max Healthcare Institute Ltd. is one of the top five index constituents by weightage above 5%, with a remarkable weightage of 14.26%. Aurobindo Pharma Ltd. is not far behind with weightage of 7.21%, whereas Fortis Healthcare Ltd. and Alkem Laboratories Ltd. contribute 5.15% and 5.84% each.