Nifty 50 Small Cap Index
NIFTY Smallcap 50 today is a broad-based index on the National Stock Exchange (NSE) that measures the performance of the small-cap segment of the equity market. It is an index of 50 stocks chosen based on the average daily turnover of the top 100 businesses in the NIFTY Smallcap 250 index, as measured by full market capitalization. These stocks represent 16 distinct economic sectors, with financial services comprising one-third of the index. It is followed by information technology, chemicals, consumer goods, and telecommunications. The top five sectors account for around 70% of the index.
The Nifty 50 Small Cap index accounts for more than 2% of the NSE's float-adjusted market capitalization. In the past six months, the traded value of all NIFTY Smallcap 50 constituents has been nearly 4.7% of the total traded value of all equities on the NSE.
This NIFTY Smallcap 50 index chart was launched on April 1, 2016, with a base date of April 1, 2005, and a base value of 1,000. Since its establishment, the NIFTY Smallcap 50 share price has surpassed 3900 with a P/E ratio of approximately 22. It is rebuilt twice in a year.
The NIFTY Smallcap 50 index today is owned and maintained by NSE Indices Limited, formerly India Index Services & Products Limited. The Smallcap index is regulated by a three-tier organization that includes the NSE Indices Board of Directors, the Index Advisory Committee, and the Index Maintenance Subcommittee.
The NIFTY Smallcap 50 Total Returns Index is a version of the NIFTY Smallcap 50. This index has a variety of applications, including benchmarking fund portfolios and the development of index funds, NIFTY Smallcap ETF list, and structured products.
Nifty Smallcap 50 Index Stock Selection Criteria
The NIFTY Smallcap 50 share price is calculated in real-time by weighting its 50 equities based on free-float market capitalization against a base market capitalization value. For inclusion in the NIFTY Smallcap 50 index, companies must meet the following qualifying criteria:
- It will be listed on the National Stock Exchange.
- Will constitute a part of NIFTY Smallcap 250 stocks.
- Will include the securities from the NIFTY Smallcap 250 universe, if they rank among the top 30 from the top 100 stocks that are selected based on full market capitalization.
- Will exclude securities if their rank falls below 130 from NIFTY Smallcap 250 universe based on full market capitalization.
- Will exclude securities even if they feature among the top 130 in the NIFTY Smallcap 250 universe based on full market capitalization, but rank below 80 based on average daily turnover.
- Will exclude securities if they are replaced from NIFTY Smallcap 250 index.
- A newly listed security’s eligibility is verified based on the data for three months instead of six months.
How to Calculate Nifty Smallcap 50 Index Value?
The index value is computed as follows:
Index value = current market capitalization / (base market capitalization * base index value).
The NIFTY Smallcap 50 index is reviewed semi-annually, with six months of data collected between January and July of each year. The replacement of equities (if any), up to a maximum of ten per year, begins on the final trading day of March and September.
