What happens when a company has moved beyond the small cap stage but is still working its way towards becoming a large cap business? This is where the mid cap segment comes into focus, bringing together companies that may be more established than smaller businesses but can still be navigating an important phase of expansion.
The BSE MidCap Index tracks this segment within the broader BSE AllCap universe. As of June 30, 2026, it included 149 companies and followed a float-adjusted market-capitalisation weighting method. Understanding how BSE MidCap companies are selected, weighted and reviewed can offer a clearer view of what is driving movements across India’s mid cap market.
Table of Contents
What is BSE MidCap?
So, what is BSE MidCap in simple terms? It is a rules-based benchmark designed to represent the mid cap segment of India’s equity market. Its constituents are drawn from the broader BSE AllCap Index.
Companies in the BSE AllCap are arranged according to their cumulative average daily total market capitalisation. Companies accounting for the first 70% are classified as large cap, the next 15% as mid cap and the final 15% as small cap. The BSE MidCap represents the middle segment in this classification.
The index was launched on April 11, 2005. Its historical series has a first value date of April 1, 2003, and a base value of 3,122. BSE publishes both a Price Return Index, which reflects movements in constituent share prices, and a Total Return Index, which also accounts for dividends.
The number of companies included in the index is not permanently fixed. It may change following index reviews, changes in the BSE AllCap universe or certain corporate events.
How the BSE MidCap Index works
The BSE MidCap Index follows a defined process for identifying and weighting mid cap companies:
- It starts with the BSE AllCap universe: Companies must first meet the eligibility, liquidity and market-size requirements for inclusion in the BSE AllCap.
- Companies are arranged by market capitalisation: Eligible companies are sorted in descending order according to their cumulative average daily total market capitalisation.
- The market is divided into size segments: Companies accounting for the first 70% are classified as large cap. The next 15% form the mid cap segment, while the final 15% form the small cap segment.
- A buffer helps reduce unnecessary movement: A ±5% buffer is applied near the size boundaries. This may reduce frequent movement between the large, mid, and small cap indices when relatively small changes occur in a company’s market capitalisation.
- Companies are weighted by free float: The weight of each constituent is based on its float-adjusted market capitalisation. This considers shares available for public trading rather than the company’s entire issued share capital.
The index is reconstituted annually in September. Trading frequency, impact cost, share counts, free-float factors and certain eligibility conditions may also be reviewed quarterly.
Key features of the BSE MidCap Index
The index provides a structured view of the mid cap segment through the following features:
Focused mid cap representation
The index tracks the part of the BSE AllCap universe classified as mid cap under the published size-segmentation methodology.
Broad constituent base
The index had 149 constituents as of June 30, 2026. However, the number of companies may change following index reviews, corporate actions and changes in eligibility.
Exposure across sectors
The index includes companies from financial services, consumer discretionary, industrials, healthcare, commodities, information technology and several other areas of the economy.
Rules-based methodology
Constituent eligibility, size classification, weighting and review schedules follow a published methodology rather than discretionary stock selection.
Price and total return versions
The Price Return Index measures movements in constituent share prices. The Total Return Index additionally accounts for dividends distributed by constituent companies.
How are BSE MidCap companies selected?
Companies must first qualify for inclusion in the BSE AllCap universe. Under the current methodology, eligible companies are assessed using factors such as liquidity, trading activity, market capitalisation and traded value.
| Selection factor | Requirement |
| Average impact cost | 1% or lower over the preceding six months |
| Average daily total market-capitalisation rank | Within the top 1,500 |
| Turnover ratio | At least 5% |
| Trading frequency | At least 80% over the preceding six months |
| Six-month average free-float market-capitalisation rank | Within the top 2,000 |
| Annualised traded-value rank | Within the top 2,000 |
Certain securities are not eligible, including companies traded on the BSE SME platform, suspended companies, companies in the Z group and companies identified under the Graded Surveillance Measure, subject to the detailed methodology.
Once the BSE AllCap universe is formed, companies are classified as large, mid or small cap using their cumulative average daily total market capitalisation.
This means the BSE MidCap does not simply consist of a permanently fixed list of 150 companies ranked from 101 to 250. It represents the next 15% of cumulative market capitalisation after the large cap segment, subject to the applicable buffer rules.
Source: BSE Index Services Pvt. Ltd., BSE AllCap Methodology, February 2026.
Key Takeaways
- The BSE MidCap is designed to represent the mid cap portion of the BSE AllCap universe.
- It covers the next 15% of cumulative market capitalisation after the large cap segment.
- It had 149 constituents as of June 30, 2026, although the number may change over time.
- Constituents are weighted according to their float-adjusted market capitalisation.
- The index undergoes annual reconstitution and certain quarterly reviews.
- The index is a benchmark and cannot be purchased directly. Exposure may be obtained through an eligible index fund or ETF that tracks it, where available, or through its individual constituent stocks.
How to invest in BSE MidCap
An index is a measurement tool, so investors cannot buy the BSE MidCap Index directly. Exposure to the index or the broader mid cap segment may be obtained through the following routes:
Index funds
An index mutual fund that specifically tracks the BSE MidCap may aim to hold the index constituents in similar proportions, where such a scheme is available.
Its returns may differ from those of the index because of expenses, cash holdings, portfolio-rebalancing costs and tracking difference.
Exchange-traded funds
An exchange-traded fund tracking the index may be bought and sold through a demat and trading account, where such a product is available.
Factors such as trading liquidity, expense ratio and tracking difference may be relevant when comparing ETFs.
Active mid cap mutual funds
An actively managed mid cap fund may invest in companies from the same broader market segment. However, it may follow a different benchmark and will not necessarily replicate the BSE MidCap portfolio or its performance.
Individual mid cap stocks
Investors may purchase individual index constituents directly. This requires company-level research and does not provide the same diversification or performance as holding the complete index.
When comparing these routes, relevant factors may include the product’s stated benchmark, investment objective, portfolio, costs, tracking error or tracking difference, risk level and the investor’s time horizon. These factors do not guarantee potential returns or protect against market losses.
Risks associated with BSE MidCap exposure
Mid cap exposure can involve risks that may differ from those associated with relatively established large cap companies:
- Market volatility: Mid cap share prices may experience relatively sharp movements when investor sentiment or market conditions change.
- Liquidity risk: Some stocks may have lower trading volumes, particularly during periods of market stress.
- Business risk: Mid-sized companies may have less diversified operations or more limited financial resources than larger businesses.
- Valuation risk: High investor expectations may push valuations upwards, increasing the impact of earnings disappointments or slower-than-expected growth.
- Sector concentration: Although the index covers several sectors, a few sectors may account for a meaningful portion of its total weight.
- Tracking risk: A passive fund may not reproduce the index return exactly because of expenses, cash holdings, transaction costs and portfolio rebalancing.
Whether BSE MidCap exposure is suitable may depend on the investor’s ability to accept fluctuations in portfolio value, investment horizon, financial circumstances and overall asset allocation. Potential returns are not assured, and investments may result in losses, including over longer periods.
Historical returns of the BSE MidCap Index
Historical returns show how the BSE MidCap Index performed across different time periods. The Price Return Index reflects changes in constituent share prices, while the Total Return Index also includes dividends assumed to be reinvested.
The following returns are as of June 30, 2026:
| Index returns (%) | 1 month | 3 months | YTD | 1 year | 3 years | 5 years | 10 years |
| Price Return Index | 1.39 | 17.2 | 1.18 | 1.4 | 18.19 | 16.09 | 15.03 |
| Total Return Index | 1.49 | 17.39 | 1.49 | 2.18 | 19.24 | 17.26 | 16.24 |
The one-month, three-month and year-to-date figures are absolute returns, while the one-, three-, five- and ten-year figures are annualised returns.
The data shows why both the selected period and index variant matter when assessing historical performance. For example, the index recorded a relatively high return over the three-month period, while its year-to-date return was considerably lower. The Total Return Index also recorded higher returns than the Price Return Index across all the periods shown because it includes the effect of dividends.
However, annualised returns do not mean that the index generated the same return in every year. Returns from an index fund, ETF or another investment product may also differ from index returns because of expenses, tracking difference, cash holdings and transaction costs.
Source: BSE Index Services Pvt. Ltd., BSE MidCap Factsheet dated June 30, 2026.
Past performance may or may not be sustained in future.
Factors that may influence BSE MidCap performance
Rather than relying on a single market forecast, investors may consider the following factors when interpreting movements in the BSE MidCap Index:
Company earnings
Changes in revenue, profitability, debt levels, cash flows and management execution may influence individual constituents and the broader index.
Interest rates and access to credit
Changes in borrowing costs may affect companies that depend on external financing for working capital, capacity expansion or other business requirements.
Market valuations
Even when business performance remains stable, the index may decline if investors are no longer willing to pay the same valuation multiples.
Similarly, rising valuations do not necessarily mean that company earnings or potential returns will rise at the same pace.
Domestic demand and capital expenditure
Changes in consumer spending, infrastructure activity, manufacturing investment and corporate capital expenditure may influence companies in several mid cap industries.
Market liquidity and investor sentiment
Changes in institutional flows, market liquidity or overall risk appetite may lead to relatively sharp movements in mid cap share prices.
Top constituents of the BSE MidCap Index
The following were the ten largest constituents by index weight as of June 30, 2026:
| Company | Index weight |
| The Federal Bank Ltd. | 2.52% |
| Suzlon Energy Ltd. | 2.20% |
| PB Fintech Ltd. | 1.89% |
| GE Vernova T&D India Ltd. | 1.88% |
| Bharat Heavy Electricals Ltd. | 1.87% |
| AU Small Finance Bank Ltd. | 1.80% |
| Laurus Labs Ltd. | 1.80% |
| Bharat Forge Ltd. | 1.78% |
| IDFC First Bank Ltd. | 1.63% |
| Coforge Ltd. | 1.58% |
The constituent list and company weights may change following index reviews, corporate actions and movements in float-adjusted market capitalisation.
Source: BSE Index Services Pvt. Ltd., BSE MidCap Factsheet dated June 30, 2026
Sector composition of the BSE MidCap Index
The following table shows the index’s sector composition as of June 30, 2026:
| Sector | Weight |
| Financial services | 24.47% |
| Consumer discretionary | 20.28% |
| Industrials | 15.69% |
| Healthcare | 10.68% |
| Commodities | 9.94% |
| Information technology | 6.57% |
| Energy | 3.64% |
| Services | 2.87% |
| Fast-moving consumer goods | 2.57% |
| Utilities | 1.78% |
| Telecommunication | 1.06% |
| Diversified | 0.45% |
Source: BSE Index Services Pvt. Ltd., BSE MidCap Factsheet dated June 30, 2026; sector classification and weights may change over time.
Please note that the reference to any industry, sector or 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.
Conclusion
The BSE MidCap Index is a rules-based benchmark that tracks the mid cap segment of the BSE AllCap universe. It uses float-adjusted market-capitalisation weighting and is periodically reviewed to account for changes in company eligibility, size classification and publicly available shareholding.
The index may provide useful context on how mid cap companies are performing as a group. However, index performance does not guarantee the potential returns of an investment product that tracks or uses it as a benchmark.
Suitability may depend on the product’s objective, portfolio, costs and risks, along with the investor’s financial circumstances, risk appetite and investment horizon.
FAQs
When was the BSE MidCap introduced?
The BSE MidCap Index was launched on April 11, 2005. Its historical index series begins on April 1, 2003, with a base value of 3,122.
How many companies are included in the BSE MidCap Index?
The BSE MidCap Index had 149 constituents as of June 30, 2026. The number is not permanently fixed and may change after index reviews, corporate events or changes in the eligible BSE AllCap universe.
Is the BSE MidCap the same as the BSE 150 MidCap Index?
No. The BSE MidCap represents the mid cap segment of the BSE AllCap, based on cumulative market capitalisation. The BSE 150 MidCap is a separate index comprising 150 companies selected from the BSE 500 under a different methodology.
How often is the BSE MidCap Index reviewed?
The BSE MidCap is reconstituted annually in September. Certain factors, including trading frequency, impact cost, shares outstanding and free-float changes, may also be reviewed or updated quarterly.
How does market volatility affect BSE MidCap stocks?
Market volatility may cause BSE MidCap stocks to experience sharp price movements. Changes in company earnings, valuations, liquidity and investor sentiment can affect each constituent differently, so not every stock moves in line with the overall index.
Can I invest directly in the BSE MidCap Index?
No. The BSE MidCap is a benchmark and cannot be purchased directly. Investors may gain exposure through an index fund or ETF that tracks it, where available, or buy individual constituents, although this would not replicate the complete index.
Is BSE MidCap exposure suitable for beginners?
BSE MidCap exposure may be suitable for beginners who understand its higher volatility and can accept fluctuations in investment value. Suitability also depends on the investor’s risk appetite, financial circumstances and investment horizon. Potential returns are not assured.
Are BSE MidCap stocks suitable for the long term?
BSE MidCap stocks may be considered for a longer investment horizon by investors who can accept market volatility and company-specific risks. However, holding an investment for longer does not eliminate the possibility of losses or assure potential returns.
Where can I check the BSE MidCap Index today?
The latest BSE MidCap level, constituents, weights, returns and factsheets can be checked on the official BSE Indices website. Live-market platforms may also show the index value, although prices and refresh times can vary.
How to invest in the BSE Midcap?
You cannot invest directly in the BSE Midcap index. You can gain exposure through mutual fund schemes or exchange-traded funds (ETFs) that track the BSE 150 MidCap Index.
Is investment in the BSE Midcap safe?
The BSE 150 MidCap Index represents mid cap companies, whose prices may fluctuate more than those of large cap companies and is hence suitable only for investors with a very high risk appetite.
What is the objective of the BSE Midcap?
The objective of the BSE 150 MidCap Index is to measure the performance of 150 mid cap companies selected from the BSE 500, excluding companies in the BSE 100 LargeCap segment. It serves as a benchmark for evaluating the performance of eligible investment products.
What are the shareholder returns of S&P BSE 150 MidCap Index?
The S&P BSE 150 MidCap Index, now called the BSE 150 MidCap Index, has no shareholders, although its constituent companies do. Index returns vary with market movements. Its returns as of July 31, 2026, are shown below.
| Index | YTD* | 1 year | 3 years | 5 years | 10 years |
| TRI | 4.03% | 8.08% | 17.96% | 16.96% | 17.32% |
| PRI | 3.59% | 7.33% | 17.03% | 15.88% | 16.23% |
*YTD returns are for calendar year.
Source: BSE MidCap 150 Factsheet, BSE Index Services Pvt Ltd | Data as on July 31, 2026
Past performance may or may not be sustained in future.
What is the 52-week high value of BSE 150 MidCap Index?
As of August 6, 2026, the 52-week high of the BSE 150 MidCap Index was 17,269.29 points, recorded on August 5, 2026. This figure represents the index’s highest intraday level during the preceding 52 weeks and will change as the period moves forward. Please check the official BSE website for latest figures. Past performance may or may not be sustained in future.
What is the 52-week low value of S&P BSE 150 MidCap Index?
As of 6 August 2026, the 52-week low of the BSE 150 MidCap Index was 14,130.50 points, recorded on April 2, 2026. This figure represents the index’s lowest intraday level during the preceding 52 weeks and will change as the period moves forward. Please check the official BSE website for latest figures. Past performance may or may not be sustained in future.
What are the components of S&P BSE 150 MidCap Index?
The BSE 150 MidCap Index comprises 150 mid cap companies from diverse sectors. Constituents are selected according to the index methodology and are reviewed periodically. As the list changes over time, investors may refer to the latest constituent list published by BSE Indices.
