What is NIFTY Midcap 150?

Investing in a midsize company can be an excellent option for rapidly appreciating wealth. Midsize companies have high growth potential, and companies that grow at a rapid pace can help increase your investment returns and wealth manifold. One of the best places to find such high-growth mid-cap companies is the NIFTY Midcap 150.

Investing in stocks of midsize companies will offer higher returns than investing in large-cap companies. However, before investing in mid-cap companies, make sure to learn about the risks and returns associated with this particular segment.

What is the Nifty Midcap 150 Index

The Nifty Midcap 150 Index portfolio possesses several key characteristics. It is based on a free float market capitalisation methodology and has a base value of 1000, with a base date of April 1, 2005. The index is calculated in real time and includes 150 constituents. The calculation is performed with high frequency, ensuring timely updates. The index methodology is carefully designed and is subject to semi-annual rebalancing to maintain its relevance and accuracy.

Nifty Midcap 150: A more profound insight

NIFTY Midcap 150 is a stock market index comprising 150 mid-cap companies. It showcases firms ranked between 101 and 250 based on total market cap from the NIFTY 500 index.

Let’s break it down for better understanding.

The NIFTY 100 index comprises the top 100 companies by total market capitalisation in the NIFTY 500 index. The enterprises after them, ranked from 101 to 250, make up the NIFTY Midcap 150 index.

Now that you know what NIFTY Midcap means, let’s understand the weightage of the companies that compose this market index.

Weightage of various firms in the NIFTY Midcap 150 index

The weightage that an establishment will have in the NIFTY Midcap 150 index totally depends on its free-float market capitalisation. You can calculate it by multiplying the number of shares a company has available in the market by its stock price.

Let’s take an example for better understanding.

Suppose a company named ‘Alpha’ has 2.5 lakh shares available in the stock market. Now, let’s assume that each of its stocks has Rs. 50 as its price. Therefore, this company’s total market capitalisation will amount to Rs. 1,25,00,000.

You already know that the NIFTY Midcap 150 Index consists of 150 companies with a rank of 101-250 based on their full market capitalisation in the NIFTY 500 market index. However, a firm’s weightage in the market index depends on its free-float market cap.

Therefore, if an establishment has a higher free-float market capitalisation, it will have a greater weightage in the market index.

Top 10 companies of the NIFTY Midcap 150 Index 

The NIFTY 150 Midcap index undergoes rebalancing twice a year. During this process, it removes stocks that have risen or fallen in market capitalisation and companies that have been delisted or suspended.

The table below shows the current top 10 companies that comprise the NIFTY Midcap 150 Index.

Note – The data in this table is based on the information collected on MAY 2025.

Here’s a structured summary of the Sector Alloca

Sector Allocation by Weight

Note – The data in this table is based on the information collected on MAY 2025.

Quick Observations:

This provides a good overview of how the portfolio or index is diversified across different industries.

• Top Sectors: Financial Services (22.49%) is by far the most dominant, followed by Capital Goods (13.22%) and Healthcare (11.73%).
• Technology & Innovation: IT (6.60%), Consumer Durables (4.55%), and Services (1.76%) show exposure to newer growth-driven sectors.
• Broad Diversification: The presence of 20 sectors shows a wide diversification, although many sectors have very minor weights (<2%).

NIFTY Midcap 150 performance over time

The equity market has its ups and downs, and so does the NIFTY Midcap 150 index. However, over the long term, this index has generated excellent returns. Its annual average return rate since interception has been 16.04%.

And it has the following statistics

How to Invest In Nifty Midcap 150 Index?

You can invest in NIFTY Midcap 150 by opting for an exchange-traded fund (ETF) or an index fund that tracks this index. However, directly following this index for the purpose of investment will limit your gain and loss potential. 

If the index rises, you will make a profit. On the other hand, only when the index falls will you incur a loss. In short, you will never be able to outperform the index.  

But look on the bright side. By purchasing stocks of the companies listed on the NIFTY Midcap 150 index, you are investing in stocks of those 150 companies that have rapid growth potential in the long term. 

Furthermore, investing in this index becomes much easier if you do it via exchange-traded funds.

Conclusion

Investing in the NIFTY Midcap 150 offers a promising opportunity for wealth appreciation through exposure to high-growth midsize companies. Still, it is essential to understand the associated risks and market dynamics. By strategically investing in this index, investors can achieve superior returns compared to large-cap stocks while benefiting from a diversified portfolio across various sectors.