Nifty launches new index for mid and small cap stocks

It will comprise of 400 companies which are the constituents of Nifty Midcap 150 & Nifty Smallcap 250 indices

The National Stock Exchange (NSE) on Friday added a new index to its broad market indices -- Nifty Mid Smallcap 400 -- to represent the mid and small market capitalisation segments.

The new index will comprise of 400 companies which are the constituents of Nifty Midcap 150 and Nifty Smallcap 250 indices, said a statement issued by NSE group company India Index Services and Products Ltd. (IISL).

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"The Nifty MidSmallcap 400 is a well-representative index consisting of 150 midcap and 250 smallcap stocks across 18 sectors," the statement said, quoting Mukesh Agarwal, chief executive of IISL.

"The new index joins the family of restructured broad-based Nifty indices, which will facilitate introduction of investment products."

IISL will initially publish value of the Nifty MidSmallcap 400 at end of the day's trade and subsequently disseminate it online along with existing indices, the statement said.

"Nifty MidSmallcap 400 index would be an appropriate benchmark for mutual fund schemes which predominantly invests in small-cap and mid-cap companies equity stocks," the statement said, quoting Navneet Munot, the Chief Information Officer of SBI Asset Management Company.