NSE’s index services arm, NSE Indices, has launched a new broad-based equity benchmark, the Nifty Smallcap 500 Index.
The Nifty Smallcap 500 Index is designed to track the performance of 500 small-cap stocks selected on the basis of six-month average full market capitalisation, after excluding constituents of the Nifty Midcap 150. The index provides a comprehensive representation of India’s small-cap universe.
Each stock’s weight in the index is determined by its free-float market capitalisation, ensuring that the index reflects investable market opportunities and liquidity conditions.
The base date for the index is 1 April 2005, with a base value of 1000. The index will be reconstituted on a semi-annual basis, with reviews scheduled in March and September.
The index’s performance highlights show a 6.89% decline in total return over the past year, as of 31 December 2025, while it has delivered a 16.49% compound annual growth rate since its inception on 1 April 2005. Key constituents of the index include Multi Commodity Exchange of India (2.03% weightage), Laurus Labs (1.54%), Radico Khaitan (0.92%), Central Depository Services (India)(0.92%) and Karur Vysya Bank (0.89%).
According to NSE Indices, the Nifty Smallcap 500 is expected to serve as a benchmark for asset managers and market participants. It is also likely to be tracked by passive investment products such as exchange traded funds, index funds and structured products, offering investors diversified exposure to the small-cap segment of the Indian equity market.