Nifty Smallcap 50 – Nifty Smallcap 50 Stocks List

The Nifty Smallcap 50 is a stock market index that represents the performance of the top 50 small-cap companies listed on the National Stock Exchange (NSE) of India. It provides investors with exposure to small-cap stocks, which typically have higher growth potential and volatility compared to larger companies.

The table below shows the NIFTY smallcap 50 stocks list based on the highest market capitalisation and 1-year return.

Introduction To Nifty Smallcap 50 Stocks

Glenmark Pharmaceuticals Ltd

The Market Cap of Glenmark Pharmaceuticals Ltd is Rs. 47,568.46 crores. The stock’s monthly return is -0.69%. Its one-year return stands at 117.12%. The stock is currently 4.98% away from its 52-week high.

Glenmark Pharmaceuticals Limited, an India-based pharmaceutical company, is dedicated to establishing a strong presence in the global pharmaceutical market by focusing on branded, generic, and over-the-counter (OTC) products in the fields of dermatology, respiratory, and oncology. 

The company also operates in regional and country-specific markets, offering products in areas such as diabetes, cardiovascular health, and oral contraceptives. Glenmark’s diverse product line includes topical treatments, liquids, respiratory inhalers, injectables, biologics, and oral medications.  

Blue Star Ltd

The Market Cap of Blue Star Ltd is Rs. 43,580.05 crores. The stock’s monthly return is 25.40%. Its one-year return is 138.63%. The stock is 3.66% away from its 52-week high.

Blue Star Limited operates as a company specializing in heating, ventilation, air conditioning, and commercial refrigeration services. The company is divided into three segments: Electro-Mechanical Projects and Commercial Air Conditioning Systems, Unitary Products, and Professional Electronics and Industrial Systems. 

The Electro-Mechanical Projects and Commercial Air Conditioning Systems segment covers central air-conditioning projects, electrical contracting, and packaged air-conditioning services including manufacturing and after-sales support. The Unitary Products segment focuses on cooling appliances and cold storage products, along with manufacturing and after-sales service.  

360 One Wam Ltd

The Market Cap of 360 One Wam Ltd is Rs. 38,934.28 crores. The stock’s monthly return is -1.42%. Its one-year return is 107.51%. The stock is 13.81% away from its 52-week high.

360 ONE WAM Limited is an India-based company that focuses on providing wealth and asset management services. Their services include financial asset distribution, broking, lending, credit, and investment solutions, as well as asset and portfolio management. The company was previously known as IIFL Wealth Management Limited.

Apar Industries Ltd

The Market Cap of Apar Industries Ltd is Rs. 38,130.17 crores. The stock’s monthly return is 5.74%. Its one-year return is 65.23%. The stock is 11.93% away from its 52-week high.

Apar Industries Limited (Apar) specializes in manufacturing and supplying conductors, various types of cables, specialty oils, polymers, and lubricants. The company operates in segments including Conductor, Transformer & Specialty Oils, and Power/Telecom Cables. It serves diverse areas of electrical and metallurgical engineering, providing value-added products and services in Power Transmission Conductors, Petroleum Specialty Oils, and Power & Telecom Cables. 

Apar’s specialty oil division offers a wide range of products across four main categories: transformer oils, white oils (liquid paraffin), petroleum jelly, and process oils. The company has manufacturing facilities located in Maharashtra, Gujarat, Odisha, and the Union Territory of Dadra & Nagar Haveli.

National Aluminium Co Ltd

The Market Cap of National Aluminium Co Ltd is Rs. 38,025.62 crores. The stock’s monthly return is 11.00%. Its one-year return is 122.62%. The stock is currently 2.59% away from its 52-week high.

National Aluminium Company Limited, based in India, primarily focuses on manufacturing and selling alumina and aluminum. The company consists of two main segments: Chemical and Aluminium. The Chemical segment produces calcined alumina, alumina hydrate, and related products, while the Aluminium segment manufactures aluminum ingots, wire rods, billets, strips, rolled products, and other related items. 

The company operates a 22.75 lakh tons per annum alumina refinery plant in Damanjodi, located in the Koraput district of Odisha, as well as a 4.60 TPA aluminum smelter in Angul, Odisha. Additionally, it has a 1200 MW captive thermal power plant next to the smelter plant.  

Brigade Enterprises Ltd

The Market Cap of Brigade Enterprises Ltd is Rs. 34,545.54 crores. The stock’s monthly return is 16.93%. Its one-year return is 142.17%. The stock is 2.73% away from its 52-week high.

Brigade Enterprises Limited is an India-based property developer involved in real estate development, leasing, hospitality, and related services. The company operates through three main segments: Real Estate, Lease Rentals, and Hospitality.

The Real Estate segment focuses on developing residential, commercial office spaces, and mixed-use projects. The Lease Rentals segment specializes in creating commercial office and retail spaces, which are then leased to third parties. The Hospitality segment is dedicated to developing hotel projects operated by international operators. 

Hindustan Copper Ltd

The Market Cap of Hindustan Copper Ltd is Rs. 33,313.98 crores. The stock’s monthly return is 3.35%. Its one-year return is 116.26%. The stock is currently 20.70% away from its 52-week high.

Hindustan Copper Limited is an Indian company that is involved in all aspects of copper production. The company’s main focus is on mining and processing copper ore. Its activities include exploring, mining, beneficiation, smelting, and refining of copper and copper ore. 

The company operates copper mines and concentrator plants in the Malanjkhand Copper Project in Madhya Pradesh, the Khetri Copper Complex in Rajasthan, and the Indian Copper Complex at Ghatsila in Jharkhand. It also has smelting and refining facilities at the Indian Copper Complex and Gujarat Copper Project in Gujarat for producing copper cathode, which is further processed into copper wire rods at the Taloja Copper Project in Maharashtra.  

NBCC (India) Ltd

The Market Cap of NBCC (India) Ltd is Rs. 31,933.80 crores. The stock’s monthly return is -4.30%. Its one-year return is 202.23%. The stock is 18.23% away from its 52-week high.

NBCC (India) Limited, headquartered in India, provides value-added services across three main segments: Project Management Consultancy (PMC), Real Estate Development, and Engineering Procurement and Construction (EPC). 

Within the PMC segment, the company undertakes civil construction projects, infrastructure projects related to national security, projects for the civil sector, as well as implementation for initiatives like the Pradhan Mantri Gram Sadak Yojna (PMGSY) and developmental activities in the Northeastern Region. The Real Estate Development segment focuses on residential projects like apartments and townships, as well as commercial projects including corporate office buildings and shopping malls.  

Central Depository Services (India) Ltd

The Market Cap of Central Depository Services (India) Ltd is Rs. 30,577.75 crores. The stock’s monthly return is -4.18%. Its one-year return is 116.40%. The stock is 13.76% away from its 52-week high.

Central Depository Services (India) Limited, an India-based company, specializes in offering depository services, data processing services, and other related services. The company operates across three main segments: Depository Services, Data Entry and Storage, and Repository. 

The Depository Services segment involves facilitating services for investors such as dematerialization, rematerialization, secure holding, transfer, and pledging of securities in electronic form, as well as providing e-voting services to companies. The Data Entry and Storage segment focuses on centralized record-keeping of Know Your Customer (KYC) documents for capital market investors.  

Century Textiles and Industries Ltd

The Market Cap of Century Textiles and Industries Ltd is Rs. 30,350.34 crores. The stock’s monthly return is 13.97%. Its one-year return is 154.77%. The stock is 6.86% away from its 52-week high.

Century Textiles and Industries Limited, an India-based company, primarily engages in manufacturing textiles, cement, pulp and paper, and real estate. Its business is divided into four segments: Textiles, Pulp and Paper, Real Estate, and Others. The Textile segment includes yarn, fabric, viscose filament yarn, and tire yarn. 

The Pulp and Paper segment covers pulp, writing and printing paper, tissue paper, and multilayer packaging boards. The Real Estate segment encompasses residential projects, leased properties, and investment properties. The Others segment involves salt works and chemicals.  

What is the Nifty Smallcap 50 Index?

The Nifty Smallcap 50 Index is a stock market index that represents the performance of the 50 small-cap companies listed on the National Stock Exchange of India (NSE). It serves as an important benchmark for investors focused on smaller firms, which typically offer higher growth potential compared to large caps.  

This index is designed to provide investors with exposure to a diversified portfolio of small-cap stocks, reflecting the overall performance and health of the small-cap segment in the Indian market. It aids in gauging market trends and making informed investment decisions in emerging businesses.

Nifty Smallcap 50 Weightage

The below table shows the nifty smallcap 50 weightage.

Best Nifty Smallcap 50 Stocks Based On 1M Return

The table below shows the best nifty smallcap 50 stocks based on a 1-month return.

Nifty Smallcap 50 Stocks List Based On Dividend Yield

The table below shows the nifty smallcap 50 stocks list based on dividend yield.

How is the Nifty Smallcap 50 Index Value Calculated?

The Nifty Smallcap 50 Index Value is determined based on the free-float market capitalization of the 50 small-cap companies listed on the National Stock Exchange of India. The index reflects the performance of these smaller firms, providing investors with insights into the growth potential in that market segment.  

To calculate the index value, the market capitalization of each constituent company is adjusted for its free float, which excludes promoters’ holdings and shares that are not easily traded. This approach ensures that the index accurately represents the market movements of small-cap stocks without distortions from less liquid shares.

How Stocks Are Selected for the Nifty Smallcap 50 Index?

Stocks for the Nifty Smallcap 50 Index are selected based on their market capitalization, liquidity, and trading volumes. The Index Committee evaluates companies listed on the National Stock Exchange (NSE) to ensure they meet specific criteria, representing the top-performing small-cap stocks in the Indian market.

History of the Nifty Smallcap 50

The Nifty Smallcap 50 Index, launched by the National Stock Exchange of India (NSE) in 2018, tracks the performance of the top 50 companies within the Nifty Smallcap 250 Index. These companies represent the small-cap segment, offering investors exposure to emerging businesses with growth potential. The index is diversified across sectors, with components chosen based on liquidity and market capitalization. It reflects the performance of high-growth companies and serves as a benchmark for funds focused on small-cap stocks in India.

Key Factors of Nifty Smallcap 50 Index Performance

The factor to consider for the performance of the Nifty Smallcap 50 Index includes the overall economic environment, as small-cap stocks often react more sensitively to economic changes than large-cap stocks, making them vulnerable yet potentially rewarding during various market conditions.

1. Market Sentiment
   Investor sentiment significantly influences the Nifty Smallcap 50 Index. Positive sentiment can lead to increased buying pressure on small-cap stocks, while negative sentiment may result in heightened selling, directly impacting the index’s performance.
2. Economic Growth
   Small-cap companies often benefit from robust economic growth, which can lead to higher revenue and profit margins. A growing economy encourages investment in small businesses, positively affecting their stock prices and, consequently, the index.
3. Liquidity
   The liquidity of small-cap stocks is crucial for the index’s performance. Higher trading volumes enable easier buying and selling, reducing price volatility. Low liquidity can lead to sharp price fluctuations, affecting investor confidence and index stability.
4. Sector Performance
   The Nifty Smallcap 50 Index is influenced by the performance of various sectors represented within it. Positive growth in sectors like manufacturing or technology can enhance the performance of small-cap stocks and the index overall.
5. Regulatory Changes
   Changes in government regulations can impact small-cap companies significantly. Favorable policies may promote growth, while stringent regulations can impose challenges. Such changes can directly affect investor confidence and influence the performance of the Nifty Smallcap 50 Index.

Benefits of Investing in the Nifty Smallcap 50

The primary benefit of investing in the Nifty Smallcap 50 is the potential for high returns, as small-cap stocks typically have greater growth prospects compared to larger companies. Investors can capitalize on the expansion of emerging businesses within this index.

1. High Growth Potential
   Small-cap companies often experience faster growth rates than established firms. Investing in the Nifty Smallcap 50 allows investors to tap into the potential for significant capital appreciation as these companies expand their operations and market share.
2. Diversification
   The Nifty Smallcap 50 offers exposure to a variety of sectors and industries. This diversification reduces the risk associated with investing in individual stocks, making it an attractive option for investors looking to balance their portfolios.
3. Market Inefficiencies
   Small-cap stocks are often less researched than large-cap stocks, leading to potential mispricing. Investors can take advantage of these market inefficiencies by identifying undervalued stocks in the Nifty Smallcap 50, resulting in higher returns.
4. Increased Volatility
   While volatility can be a risk, it also presents opportunities for traders. The Nifty Smallcap 50 tends to experience more significant price movements, allowing investors to capitalize on short-term trading opportunities and enhance potential gains.
5. Potential for Mergers and Acquisitions
   Small-cap companies are often attractive targets for mergers and acquisitions, providing potential for substantial returns. As larger firms seek to expand their portfolios, investments in the Nifty Smallcap 50 can yield significant rewards if a company is acquired.

Risks of Investing in the Nifty Smallcap 50 Stocks

The main risk of investing in the Nifty Smallcap 50 stocks is their higher volatility compared to large-cap stocks. This increased volatility can lead to significant price fluctuations, making small-cap investments riskier and potentially resulting in substantial losses for investors.

1. Liquidity Risk
   Small-cap stocks often have lower trading volumes, leading to liquidity issues. This can make it difficult for investors to buy or sell shares quickly without impacting the stock price, increasing the risk of unfavorable trades.
2. Market Sensitivity
   Small-cap companies are generally more sensitive to economic downturns and market fluctuations. During adverse economic conditions, these stocks may experience sharper declines, affecting overall portfolio performance and investor sentiment.
3. Limited Financial Resources
   Many small-cap companies may have limited financial resources and access to capital. This can hinder their ability to grow or weather economic downturns, potentially resulting in underperformance compared to larger, more established firms.
4. Higher Business Risks
   Small-cap companies often operate in niche markets and face greater business risks. Changes in consumer preferences, competition, or operational challenges can significantly impact their performance, leading to increased risk for investors.
5. Regulatory Challenges
   Small-cap companies may be more susceptible to regulatory changes and compliance issues. New regulations can impose additional costs or operational hurdles, adversely affecting their profitability and overall market performance, posing risks to investors in the Nifty Smallcap 50.

How To Invest in Nifty Smallcap 50 Stocks?

Investing in Nifty Smallcap 50 stocks can be an excellent way to diversify your portfolio. Start by conducting thorough research on the stocks included in the index. Create an account with a reliable brokerage like Alice Blue, which offers simple trading options. Analyze the performance and potential of individual companies before making informed investment decisions. Keep an eye on market trends and economic indicators.  

What Are The Tax Implications Of Investing In Nifty Smallcap 50 Index?

Investing in the Nifty Smallcap 50 Index can have various tax implications that investors should be aware of. When gains are realized from selling investments in this index, they may be subject to either short-term or long-term capital gains tax, depending on the holding period.  Short-term capital gains arise when investments are sold within a year and are taxed at a higher rate, with a flat rate of 15% in India. 

In contrast, holding the investments for more than a year can qualify for long-term capital gains tax, which is generally taxed at a rate of 10% for gains exceeding a specified exemption limit. Understanding these tax aspects is crucial for optimizing returns from investments in the Nifty Smallcap 50 Index.

Future of Nifty Smallcap 50

The outlook for the Nifty Smallcap 50 index indicates potential growth opportunities for investors. This index represents a diverse range of smaller companies, which can lead to significant returns as these firms expand and gain market share over time.  

Market dynamics, economic conditions, and investor sentiment play crucial roles in shaping the future of the Nifty Smallcap 50. As these small-cap companies adapt to changing landscapes, they may become more attractive investments, contributing to their overall performance and stability in the financial market.

FAQs – Nifty Smallcap 50 Stocks

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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.