Small cap stocks can behave quite differently from large and mid cap stocks. However, tracking only a few companies may not reveal what is happening across the wider segment. The Nifty Smallcap 100 Index brings together 100 companies from the small cap universe, offering a broader view of this part of the equity market.
Also commonly searched as the Nifty Smallcap 100 or Smallcap 100, the index follows defined rules for selecting and weighting its constituents. Its composition, sector mix and movement can help investors follow small cap market trends and compare funds that use the index as a benchmark.
Table of Contents
What is the Nifty Smallcap 100 Index?
The Nifty Smallcap 100 Index is a broad-market index comprising 100 tradable stocks listed on the National Stock Exchange. It is designed to reflect the behaviour and performance of the small cap segment of the equity market.
The index is weighted by free-float market capitalisation. This means that companies with a larger market value of shares available for public trading receive a higher weight. It is therefore not an equal-weighted index.
The index was launched on March 30, 2011. Its base date is January 1, 2004, and its base value is 1,000. It also has a Total Returns Index variant, which includes dividends and may be used when comparing the performance of funds and other index-linked products.
Key Takeaways
- The Nifty Smallcap 100 Index represents 100 relatively liquid small-cap companies listed on the NSE, offering a focused view of the investible small-cap universe.
- Stock inclusion is based on market capitalisation and trading activity, ensuring that constituents meet defined liquidity and turnover requirements.
- The index follows a free-float market capitalisation methodology, giving higher influence to companies with a larger publicly tradable market value.
- Financial Services is the largest sector in the index, accounting for 32% of the total weight as of April 30, 2026, followed by Healthcare and Capital Goods.
- The index undergoes semi-annual reviews to add or remove companies and maintain alignment with its eligibility criteria.
- The index provides exposure to small-cap companies and is associated with higher volatility, liquidity risk and sensitivity to economic cycles than broader large-cap benchmarks.
How stocks are selected for Nifty Smallcap 100
The index does not simply take the 100 smallest companies listed on the NSE. It selects companies from the Nifty Smallcap 250 using market-capitalisation and trading-liquidity criteria.
The selection process broadly works as follows:
- 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 this index if it is not already present.
- A larger selection pool is created: For the remaining positions, NSE Indices considers the top 150 Nifty Smallcap 250 constituents based on full market capitalisation.
- Trading activity is considered: Companies whose average daily turnover ranks among the top 70 within this selection pool may be included.
- Existing constituents are reviewed: A stock may be removed if its full market-capitalisation rank falls below 180 among Nifty Smallcap 250 constituents.
- Liquidity can lead to exclusion: A stock within the top 180 by full market capitalisation may still be removed if its average daily turnover rank falls below 130.
- Parent-index membership matters: A company is removed if it is excluded from the Nifty Smallcap 250.
These rules are intended to help the index represent the small cap segment while giving importance to tradability. Ordinarily, a maximum of 15 constituents may be replaced during one semi-annual review.
How is the Nifty Smallcap 100 Index calculated?
The Nifty Smallcap 100 Index is calculated using the free-float market capitalisation method. Free-float market capitalisation refers to the market value of shares considered readily available for public trading. Strategic holdings that are not ordinarily available for trading are excluded from the free float.
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.
Because the index is market-cap weighted, a company with a higher free-float market capitalisation has a greater influence on index movements than a company with a lower weight. The same percentage movement would therefore generally have a larger effect when it occurs in a heavily weighted constituent.
Adjustments are made for corporate actions such as stock splits, rights issues and changes in share capital. These adjustments are intended to prevent such events from creating an artificial change in the index value. The index is calculated in real time during market hours.
Current sector composition of the Nifty Smallcap 100
The index includes companies from several industries, but their weights are not evenly distributed. Financial Services accounted for almost one-third of the index as of June 30, 2026.
Spreading exposure across 100 companies can reduce dependence on the movement of any single constituent. However, it does not prevent concentration at the sector level.
| Sector | Weight (%) |
| Financial Services | 31.65 |
| Healthcare | 13.23 |
| Capital Goods | 8.55 |
| Automobile and Auto Components | 7.68 |
| Chemicals | 7.65 |
| Services | 5.72 |
| Information Technology | 4.58 |
| Consumer Durables | 4.32 |
| Oil, Gas & Consumable Fuels | 3.33 |
| Consumer Services | 3.06 |
| Realty | 2.39 |
| Construction | 2.36 |
| Metals & Mining | 2.28 |
| Power | 1.58 |
| Construction Materials | 1.36 |
| Telecommunication | 0.25 |
Source: NSE Indices, Nifty Smallcap 100 Factsheet. Data as of June 30, 2026.
Top constituents of the Nifty Smallcap 100
The weight of each company can change as its share price, number of shares and free-float market capitalisation change. As of June 30, 2026, the ten largest constituents were:
| Company | Weight (%) |
| Navin Fluorine International Ltd. | 2.5 |
| Karur Vysya Bank Ltd. | 2.47 |
| Sona BLW Precision Forgings Ltd. | 2.45 |
| Delhivery Ltd. | 2.33 |
| Piramal Finance Ltd. | 2.3 |
| Central Depository Services (India) Ltd. | 2.05 |
| Ather Energy Ltd. | 1.93 |
| Angel One Ltd. | 1.9 |
| City Union Bank Ltd. | 1.77 |
| Welspun Corp Ltd. | 1.76 |
Source: NSE Indices, Nifty Smallcap 100 Factsheet. Data as of June 30, 2026. Constituent names and weights may change over time.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 index is reviewed twice a year. For each semi-annual review, NSE Indices considers six months of data ending January 31 and July 31. Changes arising from these reviews are generally implemented in March and September. Market participants are ordinarily given four weeks’ prior notice before the changes take effect. A review does not mean that all 100 companies will change. Subject to the methodology, a maximum of 15 replacements may ordinarily be made during one review.
What is the Nifty Smallcap 100 Index used for?
The index can serve several purposes:
- Tracking the small cap segment: It shows how a basket of 100 tradable small cap stocks is moving collectively.
- Benchmarking mutual funds: Small cap funds may compare their performance with the index or its Total Returns Index variant.
- Creating passive investment products: The index may be used as the underlying benchmark for index funds and exchange-traded funds.
- Reviewing sector exposure: Its composition shows which sectors currently have a larger influence on index movements.
- Comparing market segments: Its movement can be compared with that of indices such as the Nifty 50, Nifty Midcap 100 or Nifty Smallcap 250.
An index reflects the collective movement of its constituents. It does not indicate whether an individual company is fairly valued or whether a particular investment is suitable for an investor.
Factors affecting the Nifty Smallcap 100
Because the index tracks smaller companies, both company-specific developments and wider market conditions may influence its movement.
- Company earnings: Revenue, profitability, debt levels, expansion plans and management decisions may affect the share prices of constituent companies.
- Economic conditions: Interest rates, inflation, economic growth and credit availability may influence the operating environment for smaller businesses.
- Investor sentiment: During periods of uncertainty, some investors may reduce their exposure to smaller or less liquid stocks. This may contribute to sharper price movements in the segment.
- Sector trends: Financial Services and Healthcare together accounted for a sizeable portion of the index as of June 30, 2026. Developments affecting these sectors may therefore influence the index.
- Liquidity: Small cap shares may have lower trading volumes than larger companies. As a result, a rise in buying or selling activity may lead to greater price fluctuations.
- Corporate and regulatory developments: Mergers, demergers, regulatory changes and changes in index eligibility may affect individual constituents.
The effect of each factor can change over time as the composition and sector weights of the index change.
How to invest in Nifty Smallcap 100 through mutual funds
An index cannot be purchased directly. Exposure to the Nifty Smallcap 100 may instead be available through an index mutual fund or exchange-traded fund that seeks to track the index.
An index fund typically seeks to hold the index constituents in similar proportions, although the scheme’s actual portfolio may differ slightly because of expenses, cash holdings, corporate actions or operational factors. Units can generally be purchased or redeemed through the fund house or an investment platform.
An ETF is bought and sold on a stock exchange and ordinarily requires a demat and trading account.
When comparing index-linked schemes, investors may consider factors such as:
- The scheme’s stated benchmark
- Tracking error and tracking difference
- Expense ratio
- Portfolio composition
- Assets under management
- ETF trading volumes and bid-ask spreads, where applicable
- Investment horizon and risk level
An actively managed small cap fund may use the index as its benchmark, but it does not necessarily hold the same companies or follow the same weights.
Conclusion
The Nifty Smallcap 100 provides a rules-based view of 100 tradable companies from the small cap segment. Its constituents are selected using market-capitalisation and turnover criteria, while their weights are based on free-float market capitalisation.
The index can help investors follow small cap market movements, review sector exposure and compare the performance of funds that use it as a benchmark. However, spreading exposure across 100 companies does not remove market volatility, liquidity risk or sector concentration. The index’s constituents, stock weights and sector mix can also change over time.
FAQs
How many companies are included in the Nifty Smallcap 100?
The Nifty Smallcap 100 includes 100 tradable stocks listed on the NSE. All Nifty Smallcap 50 constituents are included, while the remaining stocks are selected from the Nifty Smallcap 250 using market-cap and average daily turnover criteria.
Does Smallcap 100 mean the 100 smallest listed companies?
No. Smallcap 100 does not refer to the 100 smallest companies on the stock exchange. The index selects stocks from the Nifty Smallcap 250 using defined market-cap, liquidity and eligibility criteria.
Is Nifty 100 Small Cap the same as Nifty Smallcap 100?
The phrase nifty 100 small cap may appear in search queries, but the official name of the index is Nifty Smallcap 100. It is different from the Nifty 100, which comprises the Nifty 50 and Nifty Next 50.
Is the Nifty Smallcap 100 equally weighted?
No. The index 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 index movements.
How often is the Nifty Smallcap 100 rebalanced?
The index is reviewed semi-annually using six months of data ending January 31 and July 31. Changes arising from the reviews are generally implemented in March and September, with four weeks’ prior notice ordinarily given to market participants.
What is the difference between Nifty Smallcap 100 and Nifty Smallcap 250?
The Nifty Smallcap 100 comprises 100 companies selected from the Nifty Smallcap 250 using defined market-capitalisation and average daily turnover criteria. The Nifty Smallcap 250 covers 250 companies and therefore represents a wider portion of the small cap segment.
Can investors invest directly in the Nifty Smallcap 100?
No. An 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 the index, subject to the availability and terms of such schemes.
