Nifty Microcap 250 stocks list

Companies must be domiciled in India and traded on the exchange. The index leaves out every Nifty 500 stock and every stock ranked within the top 350 by average daily full market capitalization over the previous six months, then takes the top 250 of what remains.

The universe is limited to companies ranked within the top 1000 on both average daily turnover and average daily full market capitalization. If fewer than 250 stocks qualify, the rank limit widens to the top 1100, then 1200 and so on, and the index may still hold fewer than 250 constituents.

A stock needs either at least 10% of its shares in free float, or a six-month average free float market capitalization of at least 25% of the smallest member's full market capitalization. It must also have traded on at least 90% of days in the previous six months.

Each stock's weight is based on its free float market capitalization.

The index is rebalanced twice a year. The cut-off dates are 31 Jan and 31 Jul, using the average data for the six months ending on each, and the changes take effect from the last trading day of Mar and Sep. The market gets four weeks prior notice.

Among stocks outside the Nifty 500 and the top 350, a stock is compulsorily included if it ranks within the top 675 by six-month average full market capitalisation, or if its full market capitalisation is at least 1.5 times that of the smallest member.

An existing stock that no longer meets the eligibility criteria is compulsorily excluded. An ad-hoc review follows if a constituent is removed after a corporate action or suspension.

The index has a base date of 1 Apr 2005 and a base value of 1000. It was launched on 10 May 2021.