Why choose BSE MidCap Index?




The BSE MidCap Index includes companies ranked from 101st to 250th by market cap. Mid caps tend to be less volatile than small caps but more influenced by market fluctuations compared to large caps. This segment may be suitable for investors seeking exposure to a different part of the market, subject to a very high risk appetite.

BSE MidCap vs NiftyLarge Midcap 250
10-year average PE ratio: 31.11; PE ratio as on Jan 30, 2026: 25.69. Source, NSE
Why Bajaj Finserv Large and Mid Cap Fund?
Calculate Returns on Mutual Funds
Mutual Fund Schemes
All Mutual Funds



















GET A CALL BACK
Share your details and our
experts will guide you.
By submitting, I agree to receive a call from Bajaj Finserv AMC for assistance.
MORE ABOUT BSE MIDCAP INDEX
The BSE MidCap Index is a benchmark index of the Bombay Stock Exchange representing the performance of mid-sized companies in India – those ranked 101st to 250th by market capitalization according to SEBI guidelines. It reflects market trends and developments within the mid cap segment.
The BSE Midcap comprises 150 stocks ranked 101 to 250 on the BSE AllCap index. To enter the AllCap universe, a company must meet the following criteria:
Liquidity and trading quality
- Impact cost of 1% or less over the prior six months
- Trading frequency of at least 80%
- Turnover ratio of 5% or higher
Minimum market size thresholds
- Rank within the top 1,500 by average daily total market capitalization
- Rank within the top 2,000 by free-float market capitalization
- Rank within the top 2,000 by annualized traded value
Once the AllCap universe is formed, companies are sorted by cumulative average daily market capitalization to determine size tiers. The first 70% are large caps, the next 15% are mid caps, and the final 15% are small caps, with a ±5% buffer to limit turnover.
The BSE MidCap was launched on April 11, 2005.
Investors can gain exposure to the BSE MidCap Index through index funds and exchange-traded funds (ETFs) that track the index. Investors may also choose to buy individual mid cap stocks, though this requires detailed research and due diligence.
Those with a long investment horizon and a high risk appetite may explore mid cap funds after developing adequate understanding of market risks or with professional guidance. Suitability varies by individual goals and risk tolerance.
Historically, the mid cap segment has shown periods of higher returns compared to large caps over longer horizons, although it has also experienced relatively higher short-term volatility.
Past performance may or may not be sustained in future
Several structural factors may influence growth prospects for mid-sized companies over time:
Economic growth: Midcap companies are expected to potentially benefit from rising demand across industries as India’s economy expands.
Expanding sectors: Many mid cap firms operate in growing industries such as technology, financial services, manufacturing, pharmaceuticals, and consumer goods.
Government initiatives: Programs like ‘Make in India’, infrastructure development, and sector-specific reforms may create potential opportunities for mid-sized businesses to scale and innovate.
Rising domestic consumption: With a growing middle class and increasing disposable incomes, demand for products and services from mid cap companies may increase steadily over time.
Some of the companies listed on the BSE MidCap index are as follows:
| BLUE STAR LTD. |
| EXIDE INDUSTRIES LTD. |
| CRISIL LTD. |
| BHARAT HEAVY ELECTRICALS LTD. |
| HINDUSTAN PETROLEUM CORPORATIO |
| STEEL AUTHORITY OF INDIA LTD. |
| GODREJ INDUSTRIES LTD. |
| KANSAI NEROLAC PAINTS LTD. |
| WHIRLPOOL OF INDIA LTD. |
| LIC HOUSING FINANCE LTD. |
| THE RAMCO CEMENTS LIMITED |
| Max Financial Services Limited |
| MRF LTD. |
| Patanjali Foods Limited |
| TATA ELXSI LTD. |
| ACC LTD. |
| THERMAX LTD. |
| PROCTER & GAMBLE HYGIENE & HEA |
| FEDERAL BANK LTD. |
| ASHOK LEYLAND LTD. |
*Data as on November 2, 2025. Please refer to the exchange website for the exhaustive list of BSE MidCap Companies.
Please note that the reference to any industry/sector/stock is provided for illustrative purposes only. This should not be construed as a research report or a recommendation to buy or sell any security or sector.
Related video
FAQS
Midcap stocks tend to carry relatively higher risk compared to large-cap stocks due to their comparatively smaller size and greater sensitivity to market movements. Since investors cannot invest directly in the BSE MidCap Index, accessing this segment typically involves index funds, ETFs, or buying individual mid cap stocks.
Direct stock selection can be riskier, as it is difficult to replicate the index’s composition and weightage or to rebalance the portfolio if the index composition changes. Midcap companies may also face sharper price fluctuations during periods of economic uncertainty, liquidity constraints, or changes in industry cycles. Investors should assess their risk appetite, investment horizon, and diversification needs before considering mid cap exposure.
Mid cap stocks tend to be more sensitive to market volatility than large caps due to their relatively smaller scale of operations. During periods of market uncertainty or economic downturns, mid cap stocks often experience sharper price declines. Conversely, in bull markets, mid cap stocks may outperform large caps due to their higher growth potential.
Both BSE and NSE are reputable exchanges. NSE typically offers higher liquidity and faster trading, while BSE is older with broader coverage. Choice depends on stock availability, trading convenience, and personal preference.
When BSE MidCap index or stocks fall, it is advised to avoid panic selling and review your investment goals and time horizon. Consider whether the price drop reflects temporary market conditions or fundamental issues with the companies. If you have a long-term outlook, falling prices might present potential buying opportunities to accumulate quality mid cap stocks at lower valuations. Maintaining a diversified portfolio and consulting a financial advisor may help manage risk in volatile phases.
NSE is the largest stock exchange in India by daily turnover and traded volume. BSE is older and has more listed companies, but lower daily trading volume compared to NSE.
BSE stock lot sizes vary by company. For most equity shares, one lot equals one share, but derivatives and certain other instruments have specified lot sizes determined by the exchange.
Neither is inherently better; both are prominent exchanges. NSE typically has higher trading volumes and faster trading, while BSE has more listed companies and is an older exchange. The choice depends on trading preferences.
No, stocks are exchange-specific. Buying on BSE and selling on NSE directly is not possible, though most stocks are listed on both exchanges. You must transact on the same exchange or through portfolio holdings.
Whether a BSE-listed stock is a suitable buy depends on its fundamentals, valuation, and growth potential and your own investment horizon and risk appetite. Review company performance, financial health, and long-term prospects before investing rather than choosing based on the exchange alone. Investors may review goals, risk tolerance, and time horizon before deciding.
Past performance may or may not be sustained in future.
Mid cap stocks may be suitable for investors with a very high risk appetite and a long-term perspective. They offer long-term growth potential but also carry relatively higher volatility compared to large caps. Investors may review goals, risk tolerance, and time horizon before deciding.
