--- title: "Nifty Smallcap 50: Methodology" description: "Nifty Smallcap 50 is maintained by NSE Indices / Asia Index and covers Indian small-cap equity benchmark. How the index selects and weights its constituents." canonical: https://www.getswoopr.com/stocks/indexes/nifty-smallcap-50/ source: "Swoopr Investment: https://www.getswoopr.com" --- # Nifty Smallcap 50: What It Measures and How It Is Built ## Direct Answer > The Nifty Smallcap 50 is a rule-based measurement of Indian small-cap equity benchmark, maintained by NSE Indices / Asia Index. Like every index it owns nothing: it is a number produced by applying a published weighting formula to a selected list of companies, revised on a schedule the provider sets. ## What this index covers The Nifty Smallcap 50 covers Indian small-cap equity benchmark, within the India market. NSE Indices / Asia Index defines which securities are eligible, how they are selected from that pool, and how much each one contributes to the published number. The name states a target of 50 companies. A target is not a guarantee of the exact count on any given day: corporate actions, dual share classes and pending additions all move the real number around it. ## How constituents are weighted Free float market capitalization weighted with no capping and a fixed number of stocks. The weighting method is the single biggest driver of how an index behaves. Two indexes covering the same market can diverge for years purely because they weight differently, which is why comparing index levels without knowing the method tells you very little. ## What qualifies for inclusion The top 50 companies by six month average free float market cap, drawn from the top 150 Nifty Smallcap 250 stocks ranked on both average full market cap and average daily turnover. Eligibility rules are the part of an index most readers never look at and the part that decides what it can possibly measure. A screen that excludes a whole sector, or admits only one listing venue, shapes the result far more than any day of trading does. ## When the membership is revised Reviewed semi-annually; at most 10 replacements per review, excluding forced removals. A non member must have free float market cap at least 1.5 times that of the smallest member to enter. Members leave on exiting the Nifty Smallcap 250 or ranking beyond 70 on free float market cap. Reconstitution is the one date an index changes shape by design rather than by price. Funds tracking it have to trade toward the new membership, which is why the schedule matters to anyone holding the tracker rather than only to the provider. ## The rule that surprises people Selection is double ranked: a stock must be in the top 150 on both market cap and turnover, then in the top 30 on free float market cap to enter, yet it stays until that rank slips beyond 70. ## References - [NSE Indices / Asia Index: NSE Indices Limited, Methodology Document for Equity Indices (September 2026)](https://www.niftyindices.com/Methodology/Method_NIFTY_Equity_Indices.pdf), as published 2026. Every rule described on this page is taken from this document. ## Current Nifty Smallcap 50 constituents NSE Indices / Asia Index publishes and licenses the Nifty Smallcap 50 constituent list. Swoopr does not republish it here. The provider's own page is the authoritative source for current membership and weights. [NSE Indices / Asia Index: official Nifty Smallcap 50 page](https://www.niftyindices.com/indices/equity/broad-based-indices) ## Related reading - [All stock market indexes](https://www.getswoopr.com/stocks/indexes/): how indexes are built, weighted and revised. - [Emerging Markets indexes](https://www.getswoopr.com/stocks/indexes/emerging-markets/): others covering the same region. - [Index concentration](https://www.getswoopr.com/technical-analysis/market-concentration/index-concentration/): measuring how much of an index sits in its largest holdings. - [Index rebalancing and inclusion effects](https://www.getswoopr.com/stocks/corporate-actions-catalysts/index-rebalancing-and-inclusion-effects/): what happens to a stock when index membership changes. ## Frequently Asked Questions ### Who maintains the Nifty Smallcap 50? NSE Indices / Asia Index maintains the Nifty Smallcap 50 and publishes the methodology document that defines its eligibility and weighting rules. ### What does the Nifty Smallcap 50 measure? It measures Indian small-cap equity benchmark. The index is a calculated number applying a weighting formula to a selected list of companies, and it holds nothing itself. ### Where can I see the current Nifty Smallcap 50 constituents? NSE Indices / Asia Index publishes the current constituent list. Swoopr does not republish it, because index providers license constituent data and Swoopr holds no such licence. ## About the author The [Swoopr Editorial Team](https://www.getswoopr.com/authors/swoopr-editorial-team/) writes Swoopr Investment's educational library, covering market structure, analysis methods and the mechanics behind the numbers investors read every day. Our [editorial policy](https://www.getswoopr.com/legal/editorial-policy/) and [corrections policy](https://www.getswoopr.com/legal/corrections-policy/) set out how this content is produced, reviewed and fixed when it is wrong.