Nifty500 Multicap India Manufacturing 50:30:20

Nifty500 Multicap India Manufacturing 50:30:20

The Nifty500 Multicap India Manufacturing 50:30:20 Index tracks the performance of selected large, mid, and small-cap companies in the Nifty 500 index that reflect the manufacturing theme. The companies' weights are determined by their free-float market capitalisation. 

Features of Nifty500 Multicap India Manufacturing 50:30:20

• The index has a base date of April 1, 2005, and a base value of 1000.
• Stocks that are already or will be part of the Nifty 500 index at the time of review are eligible for inclusion in the index.
• 15 large-cap stocks from Nifty 100, 25 mid-cap stocks from Nifty Midcap 150, and 35 mid-cap stocks from Nifty Smallcap 250 are chosen based on free-float market capitalisation.
• Stocks eligible for trading on the NSE's F&O segment get more preference. 
• The overall weight for the large-cap segment is set at 50%, the mid-cap segment at 30%, and the small-cap segment at 20%.
• Each stock in the index is weighted according to its free float market capitalisation, with a 10% stock cap.
• The index is constructed semiannually and rebalanced quarterly.

Eligibility Criteria for Stock Selection

Stocks must meet the following eligibility criteria to be included in the Nifty500 Multicap India Manufacturing 50:30:20 index.

• Stocks that are part of the Nifty 500 index at the time of assessment. Only ordinary equity shares will be considered.  
• Stocks must be included in the infrastructure theme.  

Stock Selection Process

The stocks in the Nifty500 Multicap India Manufacturing 50:30:20 are selected in two steps:

• Step 1: Stocks are sorted within each eligible segment in decreasing order of 6-month free-float market capitalisation. Stocks traded on NSE's Futures & Options segment (F&O stocks) have higher priority. 
• Step 2: From the eligible segment universe, the following stocks are chosen:
• Top 15 large-cap stocks 
• Top 25 mid-cap stocks
• Top 35 small-cap stocks

Reconstitution of Stocks

• The index is reconstituted or rebalanced semi-annually and effective from the final trading day of March and September. 
• Stocks that leave the Nifty 500 will also exit the Nifty500 Multicap India Manufacturing 50:30:20.
• Non-member F&O stocks must be included in each segment's index, substituting the lowest non-F&O stocks.
• If all stocks in a segment have F&O, non-member eligible stocks with F&O will be included if their free-float market capitalization is at least 1.5 times the smallest constituent.