Introduction
When you think of Indian stock market indices, the first names that pop up are usually Nifty 50 and Sensex. These benchmark indices are tracked by millions of investors every day. But did you know there’s a whole universe of indices maintained by NSE, each serving a unique purpose and representing different segments of the Indian stock market? Whether you’re curious about index fund investing, portfolio construction, or simply want to deepen your market knowledge, understanding these indices is essential.
The Main Broad Market Nifty Indices (2025)
The NSE now maintains 15+ broad market indices that give a holistic view of the Indian market. These include:
- Nifty 50
- Nifty Next 50
- Nifty 100
- Nifty 200
- Nifty 500
- Nifty Midcap 50
- Nifty Midcap 100
- Nifty Midcap 150
- Nifty Smallcap 50
- Nifty Smallcap 100
- Nifty Smallcap 250
- Nifty LargeMidcap 250
- Nifty MidSmallcap 400
- Nifty Microcap 250 (launched 2021)
- Nifty 500 Multicap 50:25:25
In addition, there are dozens of sectoral, thematic, and strategy indices tracking specific industries and investment approaches.
Understanding the Hierarchy: How Do These Indices Fit Together?
Think of these indices like segments of a pyramid:
1. Nifty 500
- Top of the hierarchy: Represents the top 500 companies by market capitalization.
- Serves as the parent index — almost every other broad-based Nifty index is a subset of this group.
2. Nifty 100, Midcap 150, Smallcap 250
- Nifty 100: Top 100 companies (large caps).
- Nifty Midcap 150: Next 150 companies (ranks 101 to 250, mid caps).
- Nifty Smallcap 250: Remaining 250 (ranks 251 to 500, small caps).
So, in short:
- Nifty 100 = 1–100
- Nifty Midcap 150 = 101–250
- Nifty Smallcap 250 = 251–500
These three together make up the entire Nifty 500.
Narrower Segments: Drilling Down Further
- Nifty 50: The cream — top 50 companies by free-float market cap.
- Nifty Next 50: Positions 51–100 (the “next” set of large caps).
- Nifty Midcap 50 and Nifty Midcap 100: Subsets within the mid-cap universe.
- Midcap 50 = Top 50 in Midcap 150.
- Midcap 100 = Top 100 (may overlap with Midcap 50).
- Nifty Smallcap 50 and Smallcap 100: Subsets within the small-cap segment.
- Smallcap 50 = Top 50 in Smallcap 250.
- Smallcap 100 = Top 100 (again may overlap).
The Combined Indices
Some indices cross these boundaries to give exposure to multiple cap categories:
- Nifty 200 = Nifty 100 + Nifty Midcap 100
- Nifty LargeMidcap 250 = Nifty 100 + Nifty Midcap 150
- Nifty MidSmallcap 400 = Nifty Midcap 150 + Nifty Smallcap 250
- Nifty Microcap 250 = Companies ranked 501–750 by market cap (i.e., beyond the main Nifty 500 universe).
- Nifty 500 Multicap 50:25:25: Allocates 50% to large caps (Nifty 100), 25% to mid caps (Midcap 150), 25% to small caps (Smallcap 250) — a popular choice for multicap index funds.
Sectoral, Thematic, and Strategy Indices
Beyond the broad market indices, the NSE offers:
- Sectoral Indices: For industries like banks, IT, pharma, FMCG, auto, etc.
- Thematic Indices: Covering investment themes, e.g., consumption, infrastructure, ESG.
- Strategy Indices: For smart-beta, low volatility, quality, value, alpha, momentum, and other custom strategies.
You can explore these on the NSE indices website for a full list and methodology documents.
Index Calculation and Rebalancing
- Broad indices (like Nifty 50, Nifty 100, Nifty 500, Midcap/Smallcap indices) are calculated in real-time and updated every market minute.
- Specialty indices like LargeMidcap 250 may be updated daily.
- Quarterly or half-yearly rebalancing: Index constituents change based on market cap rankings, eligibility criteria, and liquidity rules, ensuring relevance.
Why Understanding Indices Matters
- For Traders: Knowing where a stock sits in the hierarchy informs trading strategies, volatility, and risk.
- For Investors: Most index funds and ETFs track these indices. Understanding their structure helps with smarter mutual fund/ETF selection.
- For Portfolio Construction: Diversifying across Nifty 100, Midcap 150, Smallcap 250 gives you a true cross-section of the market.
Latest Trends (2025 Update)
- Smart-beta and strategic indices are quickly gaining ground as DIY investors and fund managers look for more than just plain vanilla returns.
- Newer indices like Nifty Microcap 250 allow exposure to the next growth pack, though with higher risk.
- With the launch of more multicap and factor-driven funds, investors have much more diversity in index products.
Resources and Live Tracking
- For detailed methodology and factsheets: Check the official NSE India indices portal.
- For live index data: Use the NSE’s live index watch.
- For recent index fund launches and performance: Review regular roundups by financial websites or check with your mutual fund provider.