Nifty Smallcap 100 Index: Meaning, Stocks, Selection and Sectors

Small-cap companies often include emerging businesses that are still building scale, entering new markets or strengthening their position within a particular industry. The Nifty Smallcap 100 Index brings together 100 tradable small-cap companies listed on the National Stock Exchange (NSE), making this diverse part of the market easier to follow.

Also searched as the Smallcap 100 Index, NSE Smallcap 100 and Nifty 100 Small Cap, the index follows defined rules for selecting and weighting its constituents. Investors can use its composition, sector mix and performance to understand small-cap market trends and compare funds that use it as a benchmark.

What is the Nifty Smallcap 100 Index?

The Nifty Smallcap 100 Index is designed to reflect the behaviour and performance of the small-cap segment of the Indian equity market. It comprises 100 tradable stocks listed on the NSE.

Despite its name, it does not represent the 100 smallest companies on the stock exchange. The index includes all Nifty Smallcap 50 constituents, while its remaining companies are selected from the wider Nifty Smallcap 250 universe using market-capitalisation and average daily turnover criteria.

The index follows the free-float market-capitalisation method. This means companies with a larger market value of shares available for public trading receive a higher weight and have a greater influence on index movements. It is not an equally weighted index.

Source: NSE Indices Limited, Nifty Smallcap 100 Factsheet, 31 August 2026.

History and key facts of the Nifty Smallcap 100

The Nifty Smallcap 100 was launched on 30 March 2011, with a base date of 1 January 2004. Although the index was introduced in 2011, its historical values were calculated from the earlier base date, giving investors a longer performance record to examine.

Key facts about the index include:

The Total Return Index, or TRI, considers both share-price movements and dividends from constituent companies. The Price Return Index, or PRI, reflects changes in share prices without accounting for dividends.

Source: NSE Indices Limited, Nifty Smallcap 100 Factsheet, 31 August 2026.

How stocks are selected for the Nifty Smallcap 100

The Nifty Smallcap 100 companies are selected from the Nifty Smallcap 250 using market-capitalisation and trading-activity criteria:

• Nifty Smallcap 50 companies are included: All Nifty Smallcap 50 constituents form part of the Nifty Smallcap 100. A company added to the Nifty Smallcap 50 is also included in the Nifty Smallcap 100 if it is not already a constituent.
• A larger selection pool is created: For the remaining positions, NSE Indices considers the top 150 Nifty Smallcap 250 constituents ranked by full market capitalisation.
• Trading activity is assessed: A security may be included if its six-month average daily turnover rank is among the top 70 within this selection pool.
• Existing constituents are reviewed: A company may be excluded if its full market-capitalisation rank falls below 180 among Nifty Smallcap 250 constituents.
• Liquidity is considered: A company ranked among the top 180 by full market capitalisation may still be excluded if its average daily turnover rank falls below 130.
• Parent-index membership is required: A company is removed from the Nifty Smallcap 100 if it is excluded from the Nifty Smallcap 250.

These rules help the index balance small-cap representation with tradability.

Source: NSE Indices Limited, Nifty Smallcap 100 Factsheet, 31 August 2026.

How is the Nifty Smallcap 100 Index calculated?

The Nifty Smallcap 100 Index is calculated using free-float market capitalisation, which is the market value of shares considered available for public trading. Strategic holdings that are not ordinarily available for trading are excluded.

A simplified version of the calculation is:

Index value = (Current index free float market capitalisation / Base free float market capitalisation) x Base index value

The base index value is 1,000. Companies with a higher weight have a greater influence on index movements.

Adjustments are made for corporate actions such as stock splits, rights issues and changes in share capital so that these events do not create artificial movements in the index. The index is calculated in real time during market hours.

Source: NSE Indices Limited, Calculation of Indices and Nifty Smallcap 100 Factsheet.

Current sector composition of the Nifty Smallcap 100

The index covers several industries, but its sector weights are not equal. Financial services accounted for almost one-third of the index as of 31 August 2026:

Exposure across 100 companies reduces dependence on any one constituent. However, sectors with larger weights can still have a noticeable influence on the index.

Source: NSE Indices Limited, Nifty Smallcap 100 Factsheet, 31 August 2026.

Top constituents of the Nifty Smallcap 100

Constituent weights change with share prices, share capital and investible weight factors. The ten largest Nifty Smallcap 100 stocks as of 31 August 2026 were:

These are the ten largest constituents, not the complete Nifty Smallcap 100 stocks list. The companies and their weights can change as prices, free-float shareholding and index composition change.

Source: NSE Indices Limited, Nifty Smallcap 100 Factsheet, 31 August 2026.

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.

How the Nifty Smallcap 100 is rebalanced

The Nifty Smallcap 100 is reviewed twice a year so that it continues to reflect the eligible small-cap universe. Each review uses six months of data ending on 31 January and 31 July.

Market participants are ordinarily given four weeks’ prior notice of changes arising from a semi-annual review. A review does not mean that the entire index is reshuffled. Only companies that no longer meet the applicable criteria, or eligible companies that qualify for inclusion, may change.

This process allows the index to keep pace with changes in company size, trading activity and membership of the Nifty Smallcap 250.

Source: NSE Indices Limited, Nifty Smallcap 100 Factsheet, 31 August 2026.

What is the Nifty Smallcap 100 Index used for?

The index does more than show whether small-cap stocks rose or fell on a particular day. It provides a common reference point for understanding the segment and assessing related investment products:

• Tracking the small-cap segment: It shows how a basket of 100 tradable small-cap stocks is performing collectively.
• Benchmarking mutual funds: Small-cap funds may compare their performance with the index or its Total Return Index variant.
• Creating passive investment products: The index can serve as the underlying benchmark for a Nifty Smallcap 100 index fund, ETF or other index-linked product.
• Reviewing sector exposure: Its composition shows which sectors currently have a greater influence on small-cap index movements.
• Comparing market segments: Its performance can be compared with indices such as the Nifty 50, Nifty Midcap 100 and Nifty Smallcap 250.

The index measures the collective performance of its constituents. It does not indicate whether an individual stock is fairly valued or suitable for a particular investor.

Nifty Smallcap 100 vs Nifty Smallcap 250

Both indices follow the small-cap segment, but they differ in breadth. The Nifty Smallcap 250 represents a wider group of companies, while the Nifty Smallcap 100 selects 100 companies from that universe using additional market-capitalisation and trading-activity criteria:

The Nifty Smallcap 100 applies additional market-capitalisation and trading-activity filters to select 100 companies from the wider Nifty Smallcap 250.

Source: NSE Indices Limited, Nifty Smallcap 100 and Nifty Smallcap 250 Factsheets, 31 August 2026.

Historical performance of the Nifty Smallcap 100

Nifty Smallcap 100 returns depend on the period and index variant being measured. The Price Return Index reflects changes in constituent share prices, while the Total Return Index also considers dividends:

Quarter-to-date, year-to-date and one-year returns are absolute. Five-year and since-inception returns are compound annual growth rates.

Source: NSE Indices Limited, Nifty Smallcap 100 Factsheet, 31 August 2026.

Past performance may or may not be sustained in future

Factors affecting the Nifty Smallcap 100

Company developments and wider market conditions can influence the index:

• Company earnings: Revenue, profitability, debt and business expansion can affect constituent share prices.
• Economic conditions: Interest rates, inflation, economic growth and access to credit can shape the environment in which smaller companies operate.
• Investor sentiment: Demand for small-cap stocks may rise or fall as investors’ willingness to take equity risk changes.
• Sector trends: Developments in higher-weighted sectors can have a greater effect on the index.
• Market liquidity: Lower trading volumes in some small-cap shares can contribute to wider price movements.
• Corporate and regulatory developments: Mergers, demergers, policy changes and index-eligibility decisions can influence constituents.
• Commodity and currency movements: Changes in input costs, commodity prices and exchange rates can affect companies differently.

The influence of these factors changes as the index’s composition and sector weights change.

Benefits and limitations of tracking the Nifty Smallcap 100

The Nifty Smallcap 100 brings together a varied set of emerging businesses through a transparent, rules-based index. Understanding both its strengths and its limitations can help investors interpret its movements more meaningfully:

Benefits

Tracking the Nifty Smallcap 100 may offer the following benefits:

• Exposure across 100 companies: The index spreads exposure across more businesses than a portfolio containing only a few small-cap stocks.
• Representation across sectors: Its constituents operate across financial services, healthcare, capital goods, automobiles, chemicals and other industries.
• Rules-based selection: Companies enter and leave the index according to defined eligibility criteria.
• Transparent composition: NSE Indices Limited publishes its methodology, constituents and weights.
• Useful market benchmark: The index can help track small-cap performance and compare funds that use it as a benchmark.
• Basis for passive products: It may serve as the underlying index for an index fund or ETF.

Limitations

The index also has the following limitations:

• Wider price movements: Small-cap companies can experience sharper price changes than larger, more established businesses.
• Lower liquidity: Some constituent stocks may have lower trading volumes.
• Sector concentration: Financial services accounted for 31.83% of the index as of 31 August 2026.
• Unequal company weights: Higher-weighted constituents have a greater influence on index performance.
• Market-linked value: Investments tracking the index can rise or fall with the equity market.
• Tracking difference: An index fund or ETF may not match its benchmark return exactly because of expenses, cash holdings and operational factors.

How to invest in the Nifty Smallcap 100 through mutual funds

The index cannot be purchased directly. Exposure may be available through an index mutual fund or ETF that seeks to track it.

An index fund generally invests in the constituents in similar proportions. Its returns may differ slightly from the index because of expenses, cash holdings, corporate actions and operational requirements. Units can usually be purchased or redeemed through the fund house or an investment platform.

An ETF is traded on a stock exchange and generally requires a demat and trading account. Its market price may differ from its underlying net asset value.

Investors may compare:

• The scheme’s benchmark
• Tracking error
• Tracking difference
• Expense ratio
• Portfolio composition
• Assets under management
• ETF trading volume and bid-ask spread
• Investment horizon and risk level

An actively managed small-cap fund does not replicate an index. Its fund manager selects companies and determines portfolio weights within the scheme’s investment mandate.

Explore small-cap investing with Bajaj AMC

Investors who prefer an actively managed approach to the small-cap segment can explore the Bajaj Finserv Small Cap Fund. Its fund managers select companies and determine portfolio weights based on their research rather than replicating the Nifty Smallcap 100.

The scheme seeks long-term capital appreciation by investing predominantly in equity and equity-related securities of small-cap companies. Its investment framework considers:

• Quality of the underlying business
• Potential for sustainable growth
• Valuation relative to business fundamentals
• Scope to become a category or niche-market leader
• Corporate governance and alignment of promoter interests

The scheme is benchmarked against the BSE 250 SmallCap TRI, and SIP investments start at ₹500. Its portfolio, investment strategy, riskometer, expense ratio and scheme documents are available on the Bajaj AMC website.

Conclusion

The Nifty Smallcap 100 Index tracks 100 tradable companies selected from India’s small-cap segment using market-capitalisation and trading-activity criteria. Its constituents are weighted by free-float market capitalisation.

The index can help investors follow small-cap market movements, understand sector exposure and compare relevant funds. Since its composition and weights change over time, investors can refer to the latest NSE Indices factsheet for current information.

FAQs

How many companies are included in the Nifty Smallcap 100?

The Nifty Smallcap 100 contains 100 tradable stocks listed on the NSE. It includes all Nifty Smallcap 50 constituents, while the remaining companies are selected from the Nifty Smallcap 250 using market-capitalisation and average daily turnover criteria.

Does Smallcap 100 mean the 100 smallest listed companies?

No. The Smallcap 100 Index does not contain the 100 smallest listed companies. Its constituents are selected from the Nifty Smallcap 250 using defined eligibility criteria.

Is Nifty 100 Small Cap the same as Nifty Smallcap 100?

The phrase Nifty 100 Small Cap is sometimes used while searching for the index, but its official name is Nifty Smallcap 100. It is different from the Nifty 100, which represents the combined portfolio of the Nifty 50 and Nifty Next 50.

What is NSE Smallcap 100?

NSE Smallcap 100 is an informal term used for the Nifty Smallcap 100. The official index name is Nifty Smallcap 100, and it is owned and managed by NSE Indices Limited.

Is the Nifty Smallcap 100 equally weighted?

No. It follows the free-float market-capitalisation method. Companies with a higher free-float market value receive a larger weight and have a greater influence on the index.

How often is the Nifty Smallcap 100 rebalanced?

The index is reviewed semi-annually using six months of data ending on 31 January and 31 July. Market participants are ordinarily given four weeks’ prior notice of changes arising from a review.

What is the difference between the Nifty Smallcap 100 and Nifty Smallcap 250?

The Nifty Smallcap 100 comprises 100 companies selected from the Nifty Smallcap 250 using market-capitalisation and average daily turnover criteria. The Nifty Smallcap 250 contains 250 companies and offers wider coverage of the small-cap segment.

Can investors invest directly in the Nifty Smallcap 100?

No. The index is a measurement tool and cannot be purchased directly. Exposure may be available through an index mutual fund or ETF that seeks to track it.

Does the Nifty Smallcap 100 have a share price?

No. Nifty Smallcap 100 share price is a commonly searched phrase, but the index has an index level rather than a share price. Its constituent companies have share prices, an ETF has a traded market price, and an index mutual fund has a net asset value.

Where can I check the Nifty Smallcap 100 today?

The latest Nifty Smallcap 100 today level, movement and constituent information can be checked on the official NSE or NSE Indices website. Its level changes during market hours.

Is there a Nifty Smallcap 100 ETF?

A Nifty Smallcap 100 ETF seeks to track the index by investing in its constituent stocks in similar proportions. ETF units trade on a stock exchange and generally require a demat and trading account. Investors can compare costs, liquidity, tracking error and tracking difference across available products.

What is the Nifty Smallcap 100 P/E ratio?

The Nifty Smallcap 100 P/E ratio stood at 31.57 as of 31 August 2026. The ratio compares the index’s market value with the earnings of its constituent companies. It changes with share prices, company earnings and index composition, so it should be read alongside its date.

Is the Nifty Smallcap 100 suitable for long-term investing?

The index provides exposure to a broad group of small-cap companies. Its suitability depends on an investor’s goals, investment horizon, portfolio and comfort with the wider price movements associated with small-cap equities.