What is Nifty Midcap 150 Index?

What is Nifty Midcap 150 Index?

Mid cap companies can play an important role in India’s equity market, bridging the gap between the relatively stable and well-established large caps and the still emerging small cap businesses.

The Nifty Midcap 150 Index is one of the key benchmarks used to track this segment and helps investors understand the performance of 150 mid cap companies listed on the National Stock Exchange (NSE). In this article, we will look at what the Nifty Midcap 150 Index means, how it is calculated, its sector and stock composition, benefits, risks and ways to invest.

What is Nifty Midcap 150?

The Nifty Midcap 150 is a broad-based equity index comprising companies ranked between 101 and 250 based on full market capitalisation on the NSE. These companies fall within the broader Nifty 500 universe. In simple words, the index represents companies that come just after the top 100 large cap companies and before the smaller companies in the broader market.

The index helps investors, fund managers and analysts assess how mid-sized listed companies are performing as a group. Since the index includes companies from multiple sectors, it can provide a diversified view of mid cap market trends.

How is NIFTY Midcap 150 calculated?

The Nifty Midcap 150 is calculated using the free-float market capitalisation method, meaning that the index looks at the market value of shares that are available for public trading. Shares held by promoters, the government or other strategic investors are not included in this calculation.

The higher a company’s free-float market capitalisation, the higher its weight in the index. So, a company with a larger publicly traded market value can have a greater impact on the movement of the Nifty Midcap 150. For example, if a company has 1 lakh publicly available shares priced at ₹30 per share, its free-float market capitalisation would be ₹30 lakh. (For illustrative purpose only).

Free-float market capitalisation = Shares outstanding x Share price x Investible Weight Factor (IWF)

The Nifty Midcap 150 formula is as follows:

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

The Nifty Midcap 150 has a base date of April 1, 2005, and a base value of 1,000. It was launched on April 1, 2016, and is calculated in real time during market hours. The index is also reviewed twice a year, during which companies may be added or removed based on predefined eligibility criteria. This helps ensure that the index remains representative of the mid cap segment of the market.

Eligibility criteria for inclusion in Nifty Midcap 150

Companies are added to or removed from the Nifty Midcap 150 based on predefined eligibility rules, which are as follows:

• A company must first be part of the Nifty 500 index to be considered for inclusion in the Nifty Midcap 150.
• Companies that rank among the top 225 based on full market capitalisation may be considered for inclusion in the index.
• A company may also be included if its full market capitalisation is at least 1.50 times that of the last constituent in the Nifty Midcap 150.
• A company may be removed from the index if its rank based on full market capitalisation falls below 275. It may also be excluded if it is removed from the Nifty 500.
• For newly listed companies, eligibility is assessed based on three months of data instead of the usual six-month period.

Returns of Nifty Midcap 150 over the years

The Nifty Midcap 150 has delivered stronger returns over longer time frames, highlighting the role of investment horizon when evaluating mid cap exposure. However, short-term returns can vary significantly, as mid cap stocks are more sensitive to market cycles and investor sentiment.

Source: NSE Indices, Nifty Midcap 150 Factsheet. Returns as of May 29, 2026. Past performance may or may not be sustained in future.

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. 

Weightage and sector distribution in the Nifty Midcap 150

In the Nifty Midcap 150 index, constituent weight is determined by free-float market capitalisation. That means only the shares available for public trading are considered. So, although the index includes companies ranked between 101 and 250 by full market capitalisation within the Nifty 500, the influence of each company on index performance depends on its free-float market value. As a result, some sectors may account for a larger share of the portfolio than others. Here’s a look at the current sector representation of the index.  

Source: NSE Indices, Nifty Midcap 150 Factsheet. Data as on May 29, 2026.

Sector weightages may change from time to time due to changes in the market value of stocks and the index composition. Please refer to the exchange website for up-to-date information. 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.

Top companies by weightage in the Nifty Midcap 150

Since the Nifty Midcap 150 is weighted by free-float market capitalisation, companies with a higher publicly available market value have a greater influence on index movement. The table below shows the top companies by weightage in the Nifty Midcap 150 as on May 29, 2026.

Source: NSE Indices, Nifty Midcap 150 Factsheet. Data as on May 29, 2026.

Please refer to the exchange website for the complete and up-to-date list of 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.

Factors influencing the Nifty Midcap 150

Mid cap stocks tend to be volatile and sensitive to changes in the markets and economy. Here are some factors that may influence index movements:

• Economic cycles

Mid cap companies are often sensitive to economic cycles. During periods of economic expansion, some mid cap businesses may experience growth due to operational flexibility. During economic slowdowns, they may face greater pressure because of relatively limited financial buffers and narrower revenue streams.

• Interest rate environment

Rising interest rates increase borrowing costs and may affect corporate profitability. Changes in interest rates may also influence investor allocation between equities and fixed-income instruments, impacting mid cap valuations.

• Liquidity conditions

Periods of higher market liquidity may support increased participation in mid cap stocks. Conversely, tightening liquidity conditions may result in increased volatility and selling pressure.

• Currency movements

A depreciating rupee may raise input costs for mid cap companies that rely on imported raw materials, which can affect margins and earnings visibility.

• Regulatory changes

Changes in regulations and compliance requirements may have a proportionately higher impact on mid cap companies due to relatively limited resources compared to large cap firms.

• Global risk sentiment

Elevated global uncertainty may lead investors to adopt a more cautious stance, which can affect demand for mid cap stocks.

• Domestic consumption trends

Trends in domestic consumption may influence revenue growth for mid cap companies that cater to local markets.

• Corporate earnings growth

Quarterly earnings announcements can influence short-term price movements of mid cap stocks, reflecting changes in business performance and market expectations.

Benefits of Nifty Midcap 150 index

The Nifty Midcap 150 index offers the following potential benefits to investors:

• Broad diversification within mid caps

The index provides exposure to 150 mid-sized companies across multiple sectors. While diversification may help reduce the impact of individual stock performance, it does not eliminate overall equity market risk.

• Cost considerations

The index is tracked by passive investment products, which typically have lower expense ratios compared to actively managed funds.

• Simplified access to the mid cap segment

Index-based exposure reduces the need for individual stock selection and ongoing monitoring, offering a structured way to access the mid cap universe.

• Potential for long-term growth over time

Mid cap companies may offer potential for higher long-term growth than large cap companies, accompanied by relatively higher volatility. Such exposure may be suitable for investors with a long investment horizon and a very high tolerance for risk.

Risks of Nifty Midcap 150 index

Mid cap companies may grow faster than large cap companies over the long term, but they can also be more sensitive to market movements, business cycles and investor sentiment. Here are some key risks:

• Higher volatility: Mid cap stocks can witness sharper price movements than large cap stocks. During market corrections, the Nifty Midcap 150 may fall more sharply than broader or large cap indices.
• Market risk: The index is equity-oriented and is affected by factors such as economic growth, interest rates, inflation, corporate earnings and global market trends. These factors can influence the performance of the index.
• Liquidity risk: Some mid cap stocks may have lower trading volumes compared to large cap stocks. This can make them more sensitive to buying and selling pressure in the market.
• Business risk: Mid cap companies may still be in the expansion phase. They may face challenges related to competition, funding, profitability, governance or execution, which can affect their stock performance.
• Sector concentration risk: Although the index includes companies across several sectors, some sectors may have a higher weight than others. Any adverse development in a high-weight sector can influence index performance.

To sum up, the Nifty Midcap 150 may not be suitable for investors with a low risk appetite or a short investment horizon. Investors need to have a long horizon and the ability to tolerate short-term volatility.

Who should invest in Nifty Midcap 150?

Investors may consider exposure to the Nifty Midcap 150 if they:

• Have a long investment horizon: Mid cap stocks can move through phases of sharp rises and corrections. Investors with a long-term view may be better placed to stay invested through such market cycles.
• Have a very high risk appetite: The Nifty Midcap 150 is equity-oriented and can be affected by market volatility, economic conditions and company-specific developments. It may suit investors who can tolerate short-term fluctuations.
• Want diversified mid cap exposure: The index includes 150 mid cap companies across sectors. This can provide broader exposure than investing in a few individual mid cap stocks.
• Prefer a rule-based approach: Investors who do not want to select individual mid cap stocks may consider index-based exposure through passive investment products that track the Nifty Midcap 150.
• Want to broaden their portfolio: The Nifty Midcap 150 can be considered by investors who already have large cap exposure and want to add mid cap allocation for potential long-term growth.

Before investing, investors should assess their financial goals, investment horizon and risk appetite. They may also consider consulting a financial advisor to decide whether mid cap exposure is suitable for their portfolio.

How to invest in Nifty Midcap 150?

Investors cannot invest directly in an index. Exposure can be obtained through

index funds or ETFs tracking this index, aiming to replicate its performance (subject to tracking error). Such schemes typically invest in the same stocks and in similar proportions as the index. Returns depend on index performance and prevailing market conditions.

Investments may be made through:

• The official website of the Asset Management Company
• AMFI-registered mutual fund distributors empanelled with the AMC
• Online investment platforms
• Offline through a distributor or by submitting a filled-out form to the AMC’s official point of acceptance.
• Demat account (ETF investments can only be made through this route.)

Conclusion

The Nifty Midcap 150 index offers a broad view of India’s mid cap segment by tracking 150 companies ranked below the top 100 within the Nifty 500 universe. It can help investors understand how mid-sized companies across sectors are performing and may offer long-term growth potential. However, mid cap stocks can also be more volatile than large cap stocks. Investors looking to gain exposure to this index should consider their financial goals, investment horizon and risk appetite before investing through index funds, ETFs or other suitable investment routes.

FAQs

What is Nifty Midcap 150?

It is an NSE benchmark index representing 150 mid-sized companies in terms of total market cap. The index is weighted by free-float market capitalisation.

Is it suitable to invest in Nifty Midcap 150?

Suitability depends on an investor’s investment horizon, risk tolerance, and overall asset allocation. Mid cap exposure involves relatively higher volatility and may be evaluated by investors with a long-term perspective.

What is the difference between Nifty 100 and Nifty Midcap 150?

The Nifty 100 represents the 100 largest companies by market capitalisation, while the Nifty Midcap 150 includes 150 companies ranked after the top 100 (i.e. from 101 to 250) in terms of market capitalisation.

What is the meaning of the Nifty midcap Index?

A Nifty midcap index tracks companies that fall within the mid cap segment of the equity market, as defined by SEBI.

What is the difference between Nifty 500 and Nifty Midcap 150?

The Nifty 500 includes large cap, mid cap, and small cap stocks, whereas the Nifty midcap 150 includes only mid-sized companies (in terms of market cap).

What is the five-year return of the Nifty Midcap 150?

As per the Nifty Midcap 150 Factsheet the five-year return for the Nifty Midcap 150 Total Return Index as on March 30, 2026, was 17.5%.

Source: NSE, Data as on March 30, 2026.

Past performance may or may not be sustained in future. Investors should refer to the latest factsheet for updated information.

Is mid cap suitable for long term?

Mid cap exposure may be suitable for long-term investors who are able to tolerate relatively higher volatility.

What is the lot size of Nifty Midcap 150?

The index itself does not have a lot size. Lot sizes apply only to derivatives such as futures and options.