Nifty MidSmallcap400 Momentum Quality 100

The table below shows the Nifty 200 Momentum 30 based on the Highest Market Capitalization.

To know more about Nifty MidSmallcap400 Momentum Quality 100, refer: Nifty MidSmallcap400 Momentum Quality 100

Nifty MidSmallcap400 Momentum Quality 100 Meaning

The Nifty MidSmallcap400 Momentum Quality 100 index tracks the performance of 100 mid and small-cap stocks from the Nifty MidSmallcap 400 Index, selected based on momentum and quality scores. This index aims to reflect the investment returns of high-momentum stocks with robust quality characteristics.

This index uses specific criteria to identify stocks with strong price momentum and high-quality fundamentals, including profitability, earnings stability, and financial health. The methodology ensures the selected stocks have outperformed their peers in both price momentum and financial stability.

Investing in this index allows exposure to potential high-growth mid and small-cap companies, making it attractive for investors seeking to diversify their portfolios with stocks that combine growth potential with financial soundness. This strategic focus aims to offer a balance between risk and return by filtering out lesser-performing stocks.

Features Of The Nifty MidSmallcap400 Momentum Quality 100

The main features of the Nifty MidSmallcap400 Momentum Quality 100 include a focus on mid and small-cap stocks with high momentum and quality metrics, aiming to capture growth potential and stability. It offers diversification and targets stocks that outperform based on financial health and price trends.

• Dynamic Selection: The index dynamically selects 100 stocks from the Nifty MidSmallcap400 based on momentum and quality metrics. This approach ensures that only stocks demonstrating strong price performance and solid financial health are included, providing a robust, adaptable investment base.

• Quality Focus: Stocks in this index are screened for high-quality attributes such as profitability, earnings consistency, and balance sheet strength. This focus on quality helps mitigate risks associated with volatility in mid and small-cap investments, enhancing the potential for stable returns.

• Momentum Tracking: By emphasizing stocks with strong recent performance trends, the index capitalizes on the momentum factor, which can lead to higher gains. This strategy leverages the psychological and market-driven phenomenon where stocks that have performed well continue to perform well.

• Diverse Exposure: Investing in this index offers exposure to a broad array of sectors and industries within the mid and small-cap space, ensuring diversification across different segments of the market. This diversification can help spread risk and tap into varied growth opportunities.

• Regular Rebalancing: The index is rebalanced semi-annually, ensuring that its constituents continue to meet the strict criteria of momentum and quality. This regular update keeps the index relevant and aligned with current market conditions, potentially leading to more consistent performance over time.

Nifty MidSmallcap400 Momentum Quality 100 Stocks Weightage

The table below shows Nifty MidSmallcap400 Momentum Quality 100 Stocks based on the Highest Weights.

Nifty MidSmallcap400 Momentum Quality 100

The table below shows the Nifty MidSmallcap400 Momentum Quality 100 based on the 1-year return. 

How To Buy Nifty MidSmallcap400 Momentum Quality 100?

To invest in the Nifty MidSmallcap400 Momentum Quality 100, begin by selecting a brokerage that offers access to Indian indices and Exchange Traded Funds (ETFs). Open and fund your brokerage account, then search for ETFs that specifically track this index.

In the brokerage platform, you will typically find ETFs or mutual funds mimicking the performance of the Nifty MidSmallcap400 Momentum Quality 100. Ensure that the chosen investment vehicle accurately tracks this index by comparing its performance, fee structure, and portfolio holdings with the index’s criteria.

Finally, purchase shares of the ETF or mutual fund through your brokerage account. Monitor the investment periodically to ensure it aligns with your financial goals and market conditions, adjusting your holdings as necessary to optimize performance.

Advantages of Nifty MidSmallcap400 Momentum Quality 100

The main advantage of the Nifty MidSmallcap400 Momentum Quality 100 is its strategic focus on mid and small-cap stocks with proven momentum and robust financial health, offering the potential for higher returns. This index provides a diversified approach, targeting growth while managing risk through quality assessment.

• Growth Potential: The index targets mid and small-cap stocks known for their potential to offer higher growth compared to large caps. These companies, being in a growth phase, might deliver substantial returns over time.

• Quality Assurance: By focusing on quality metrics, the index ensures that only financially sound companies are included. This reduces the risk of investing in volatile mid and small-cap stocks that may have higher failure rates.

• Momentum Strategy: Leveraging the momentum strategy helps in capitalizing on the continuation of existing market trends. This can lead to capturing gains from stocks that are currently performing well.

• Diversification Benefit: The index diversifies across 100 different stocks, spreading out investment risks. This diversification helps mitigate the impact of poor performance from individual stocks.

• Dynamic Rebalancing: Semi-annual rebalancing of the index keeps it aligned with current market conditions and ensures that the stocks continue to meet the set criteria for momentum and quality. This adaptability helps in maintaining a robust portfolio.

Disadvantages of Nifty MidSmallcap400 Momentum Quality 100

The main disadvantage of the Nifty MidSmallcap400 Momentum Quality 100 is its exposure to mid and small-cap stocks, which can be more volatile and risky than large-cap stocks. This might lead to higher fluctuations in value, especially during market downturns.

• Higher Volatility: Mid and small-cap stocks, which dominate this index, typically experience greater price swings than their large-cap counterparts. This can lead to significant short-term fluctuations in the index value, affecting stability.

• Risk of Underperformance: While the momentum strategy aims to capitalize on continuing trends, it can backfire if the market sentiment shifts unexpectedly, leading to potential underperformance compared to more conservative investments.

• Limited Liquidity: Stocks in the mid and small-cap sectors often suffer from lower liquidity compared to large caps. This can make it challenging to execute large trades without impacting the stock price, complicating entry and exit strategies.

• Market Sentiment Dependency: The index’s reliance on momentum means it is highly susceptible to changes in market sentiment. Positive momentum can abruptly reverse with market trends, potentially leading to rapid declines.

• Concentration Risk: Despite its focus on quality and momentum, the index may still face concentration risks if a significant portion of its value is tied to specific sectors or stocks that might underperform.

Introduction to Top Nifty MidSmallcap400 Momentum Quality 100

Cummins India Ltd

The Market Cap of Cummins India Ltd is ₹102,947.92 crore. The stock’s 1-month return is 6.01%, and its 1-year return is 106.19%. It is currently 1.94% away from its 52-week high.

Cummins India Limited manufactures diesel and natural gas engines for power generation, industrial, and automotive markets. The company’s business units include engines, power systems, and distribution. Its engine business produces engines from 60 horsepower (HP) for low, medium, and heavy-duty on-highway commercial vehicle markets and off-highway commercial equipment like construction and compressors.

Its power systems business designs and manufactures engines from 700 HP to 4,500 HP for marine, railways, defense, and mining applications. This includes power generation systems with integrated generator sets ranging from 7.5 kVA to 3,750 kVA, including transfer switches, paralleling switchgear, and controls for use in standby, prime, and continuous rated systems. The distribution business provides products, packages, services, and solutions to ensure the uptime of its equipment.

NHPC Ltd

The Market Cap of NHPC Ltd is ₹102,911.38 crore. The stock’s 1-month return is 8.25%, and its 1-year return is 125.97%. It is currently 15.02% away from its 52-week high.

NHPC Limited generates and sells bulk power to various power utilities in India. The company is involved in the construction of eight hydropower projects with a capacity of approximately 6,434 megawatts (MW). Its power stations include Salal, Dulhasti, Kishanganga, Nimoo Bazgo, Chutak, Baira Siul, Tanakpur, Dhauliganga, Rangit, Loktak, Indira Saga, Chamera – I, Uri – I, Chamera – II, and Omkareshwa.

The company also offers project management, construction contracts, consultancy services, and power trading. Its consultancy services cover survey and investigation, planning, design and engineering, construction, operation and maintenance, renovation, modernization, and updating of hydropower projects. NHPC’s subsidiaries include Loktak Downstream Hydroelectric Corporation Limited, Bundelkhand Saur Urja Limited, Jalpower Corporation Limited, and Chenab Valley Power Projects Private Limited.

Polycab India Ltd

The Market Cap of Polycab India Ltd is ₹100,431.33 crore. The stock’s 1-month return is 9.68%, and its 1-year return is 97.33%. It is currently 0.85% away from its 52-week high.

Polycab India Limited manufactures wires and cables and engages in fast-moving electrical goods (FMEG). It operates through three segments: Wires and Cables, FMEG, and Others. The Wires and Cables segment manufactures and sells wires and cables, while the FMEG segment deals in fans, LED lighting, luminaires, switches, switchgear, solar products, pumps, conduits, and domestic appliances.

The Others segment comprises the engineering, procurement, and construction (EPC) business, including design, engineering, supply of materials, survey, execution, and commissioning of power distribution and rural electrification projects on a turnkey basis. Polycab owns approximately 25 manufacturing facilities across Gujarat, Maharashtra, Uttarakhand, and the union territory of Daman.

CG Power and Industrial Solutions Ltd

The Market Cap of CG Power and Industrial Solutions Ltd is ₹98,851.63 crore. The stock’s 1-month return is 13.66%, and its 1-year return is 82.17%. It is currently 1.63% away from its 52-week high.

CG Power and Industrial Solutions Limited provides end-to-end solutions for managing and applying electrical energy. The company operates through two segments: Power Systems and Industrial Systems. The Power Systems segment manufactures electric equipment for the power and industrial sectors, including transformers, reactors, switchgear products, and turnkey solutions in power distribution and generation.

The Industrial Systems segment manufactures and sells power conversion equipment for medium and low-voltage rotating machines, drives, and stampings for industrial applications. It also provides equipment and solutions for Indian railways, including rolling stock, traction machines, railway propulsion control equipment, coach panels, and signaling equipment.

Solar Industries India Ltd

The Market Cap of Solar Industries India Ltd is ₹90,556.11 crore. The stock’s 1-month return is 12.59%, and its 1-year return is 155.85%. It is currently 5.58% away from its 52-week high.

Solar Industries India Limited is an integrated global explosives company primarily involved in manufacturing a complete range of industrial explosives and explosive-initiating devices. Its product range includes packaged emulsion explosives, bulk explosives, and explosive initiating systems. It is a domestic manufacturer of bulk and cartridge explosives, detonators, detonating cords, and components.

The company’s defense products include high-energy materials such as HMX, RDX, TNT, and their compounds, as well as composite propellants for various missiles and rockets. Solar Industries also produces 30 mm ammunition, multi-mode hand grenades, mines, warheads, artillery fuses, ASW fuses, pyros and igniters, chaff payloads, loitering munition, rocket integration, and explosives filling of ammunition.

HDFC Asset Management Company Ltd

The Market Cap of HDFC Asset Management Company Ltd is ₹81,471.44 crore. The stock’s 1-month return is 8.40%, and its 1-year return is 107.59%. It is currently 4.30% away from its 52-week high.

HDFC Asset Management Company Limited provides asset management services to HDFC Mutual Fund, alternative investment funds, and portfolio management and advisory services. The company offers a comprehensive suite of savings and investment products, including mutual funds, portfolio management services, and alternative investment opportunities for a diverse customer base.

The company has a network of 228 investor service centers across more than 200 cities. It offers portfolio management services and separately managed account (SMA) services to meet the investment needs of clients such as high net worth individuals (HNIs), family offices, domestic corporates, trusts, provident funds, and domestic and global institutions.

NMDC Ltd

The Market Cap of NMDC Ltd is ₹78,510.93 crore. The stock’s 1-month return is 2.85%, and its 1-year return is 145.43%. It is currently 7.09% away from its 52-week high.

NMDC Limited is an India-based producer of iron ore and is involved in the exploration of various minerals including copper, rock phosphate, limestone, magnesite, diamond, tungsten, and beach sands. The company operates mechanized iron ore mines in Chhattisgarh and Karnataka and also runs a mechanized diamond mine at Panna, Madhya Pradesh.

The company produces over 40 million tons per annum (MTPA) of iron ore from its units in the Bailadila Sector in Chhattisgarh and Donimalai in the Bellary-Hospet region in Karnataka. NMDC’s subsidiaries include Legacy Iron Ore Limited, J & K Mineral Development Corporation Limited, NMDC Power Limited, Karnataka Vijaynagar Steel Limited, Jharkhand Kolhan Steel Limited, NMDC SARL, and NMDC CSR Foundation.

Linde India Ltd

The Market Cap of Linde India Ltd is ₹77,705.01 crore. The stock’s 1-month return is 16.32%, and its 1-year return is 101.81%. It is currently 7.26% away from its 52-week high.

Linde India Limited, an industrial gas company, operates through two segments: Gases and Related Products and Project Engineering Division (PED). The Gases segment supplies pipeline gas to industrial customers, liquefied gases through cryogenic tankers, and compressed gas in cylinders. Key industries served include steel, glass, and chemical industries.

The PED segment designs, supplies, installs, and commissions tonnage air separation units (ASU) and other gas-related projects. It also manufactures cryogenic vessels for in-house use and sale to third-party customers. Linde India provides solutions for nitrogen plants, pressure swing adsorption (PSA) plants, and gas distribution systems.

Rail Vikas Nigam Ltd

The Market Cap of Rail Vikas Nigam Ltd is ₹77,249.99 crore. The stock’s 1-month return is 45.93%, and its 1-year return is 215.44%. It is currently 8.92% away from its 52-week high.

Rail Vikas Nigam Limited (RVNL) develops rail infrastructure and undertakes projects such as gauge conversion, new lines, railway electrification, bridges, workshops, and production units. RVNL executes projects from conceptualization to commissioning, including design, preparation of estimates, calling contracts, project, and contract management.

RVNL works on a turnkey basis and caters to various central and state government ministries, departments, and public sector undertakings. It handles a diverse range of projects including new lines, doubling, gauge conversion, metro projects, workshops, major bridges, cable-stayed bridges, and institutional buildings.

Indian Bank

The Market Cap of the Indian Bank is ₹76,992.46 crore. The stock’s 1-month return is 4.80%, and its 1-year return is 91.91%. It is currently 17.01% away from its 52-week high.

Indian Bank is engaged in banking and financial services, operating through segments like Treasury, Corporate/Wholesale Banking, Retail Banking, and Other Banking Business. The Treasury segment manages investments and trades in foreign exchange and derivatives. Corporate/Wholesale Banking serves corporate clients, offering loans and transaction services.

The Retail Banking segment includes digital banking and personal banking activities, providing services to corporate customers, agency businesses, and ATMs. Indian Bank’s operations include a broad range of banking services to cater to individual and corporate customers’ diverse needs.

Nifty MidSmallcap400 Momentum Quality 100 – FAQs  

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.