Nifty Smallcap250 Momentum Quality 100

The table below shows Nifty Smallcap250 Momentum Quality 100 based on the Highest Market Capitalization.

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Nifty Smallcap250 Momentum Quality 100 Meaning

The Nifty Smallcap250 Momentum Quality 100 index comprises 100 small-cap stocks from the Nifty Smallcap 250, selected for their robust momentum and quality. It aims to balance growth potential and financial stability by focusing on companies with strong performance and sound financial health.

This index evaluates stocks based on their six-month price momentum and quality scores, which include profitability, debt-to-equity ratio, and earnings variability. Only the top-ranking stocks are included, ensuring a high-quality, dynamic portfolio.

Investors favor this index for its focus on small-cap companies with the potential for rapid growth and resilience, making it suitable for those looking for aggressive growth strategies with a controlled risk approach.

Features Of The Nifty Smallcap250 Momentum Quality 100

The main features of the Nifty Smallcap250 Momentum Quality 100 include its selection of small-cap stocks with strong momentum and high-quality metrics, offering potential high returns. This index balances growth potential with risk by focusing on financially stable companies demonstrating positive price trends.

• Momentum Mastery: The index focuses on small-cap stocks demonstrating significant momentum, meaning they have performed well recently compared to their peers. This strategy aims to capitalize on the continuation of their positive performance trends.

• Quality Counts: It emphasizes quality by including stocks with solid financial health, ensuring that only companies with strong profitability, low debt, and consistent earnings are selected. This mitigates the higher risk typically associated with small-cap investments.

• Dynamic Diversification: Although focused on small-cap stocks, the index provides diversification across various sectors within this segment, spreading out risk and increasing the potential for capturing growth from different industry drivers.

• Semi-Annual Rebalancing: The index is rebalanced twice a year, which helps maintain its focus on momentum and quality by regularly updating the stock selection based on the latest data. This responsiveness to market changes enhances the potential for adaptive performance.

• Growth Potential: Targeting small-cap stocks, the index taps into the growth potential of these companies, which often have more room to expand compared to their larger counterparts. This can lead to significant returns for investors willing to accept the associated risks.

Nifty Smallcap250 Momentum Quality 100 Stocks Weightage

The table below shows Nifty Smallcap250 Momentum Quality 100 Stocks based on the Highest Weights.

Nifty Smallcap250 Momentum Quality 100

The table below shows Nifty Smallcap250 Momentum Quality 100 based on the 1-year return. 

How To Buy Nifty Smallcap250 Momentum Quality 100?

To invest in the Nifty Smallcap250 Momentum Quality 100, start by opening an account with a broker that offers access to Indian ETFs or mutual funds. Find a fund that specifically tracks this index, and place an order to buy shares.

Ensure your broker provides real-time data and tools for tracking index performance to make informed investment decisions. Review the expense ratios and historical performance of the ETF or mutual fund to ensure it aligns with your investment goals.

Regularly monitor the investment, considering market volatility, especially in the small-cap sector. Adjust your investment strategy based on performance analysis and market trends to optimize returns and manage risk effectively.

Advantages of Nifty Smallcap250 Momentum Quality 100

The main advantage of the Nifty Smallcap250 Momentum Quality 100 is its strategic focus on small-cap stocks with high momentum and quality, offering the potential for substantial returns. This index seeks to maximize growth while managing risk through stringent selection based on financial health and recent performance.

• High Growth Prospects: Investing in small-cap stocks often offers higher growth potential compared to larger companies. The Nifty Smallcap250 Momentum Quality 100 focuses on these smaller companies that are poised for significant expansion, potentially leading to greater returns for investors.

• Quality Screening: This index filters stocks based on quality metrics, ensuring that only financially sound companies are included. This reduces the risk typically associated with small-cap investments, as only those with strong fundamentals, such as good profitability and low debt, are chosen.

• Momentum Benefit: By selecting stocks that have shown strong recent performance, the index taps into the momentum effect where stocks that have performed well tend to continue their performance, at least in the short term.

• Diversified Exposure: Despite focusing on a specific segment, the index offers diversification across 100 small-cap stocks from various sectors. This spreads out risk and allows investors to benefit from multiple growth areas within the small-cap universe.

• Regular Updates: Semi-annual rebalancing ensures that the portfolio remains aligned with the current market dynamics, maintaining a focus on momentum and quality. This helps in adapting to changing market conditions and securing consistent performance over time.

Disadvantages of Nifty Smallcap250 Momentum Quality 100

The main disadvantages of the Nifty Smallcap250 Momentum Quality 100 include higher volatility and risk due to its focus on small-cap stocks, the potential for rapid value fluctuations, and possible underperformance in bear markets. This index may also require active management to navigate the inherent market instability.

• Volatility Vortex: Small-cap stocks, by nature, are more volatile than their large-cap counterparts. This can lead to larger swings in portfolio value, making the Nifty Smallcap250 Momentum Quality 100 potentially riskier, especially for those with a low-risk tolerance.

• Market Sensitivity: These stocks are highly sensitive to market fluctuations. During economic downturns or market instability, small-caps can suffer significant losses, potentially dragging down the performance of the index.

• Liquidity Concerns: Trading volumes for small-cap stocks can be lower, leading to liquidity issues. This might make it difficult to enter or exit positions without affecting stock prices, a crucial factor during volatile market periods.

• Performance Pressure: The momentum strategy relies on continued performance, but past performance is not always indicative of future results. There’s a risk that once a stock stops outperforming, it could rapidly decline before it’s rebalanced out of the index.

• Focused Exposure: While diversification within the index exists, its concentration in the small-cap sector might limit exposure to broader economic benefits experienced by large-cap stocks, potentially missing out on stable gains from larger, more established companies.

Introduction to Top Nifty Smallcap250 Momentum Quality 100 

BSE Ltd

The Market Cap of BSE Ltd is Rs. 36,959.10 crore. It experienced a monthly return of 4.44% and a significant annual return of 383.59%. It currently sits 18.33% below its 52-week high.

BSE Limited operates as a key platform for trading various financial instruments in India, including stocks, bonds, and derivatives. As one of the oldest exchanges in Asia, it offers comprehensive market-related services like risk management and data solutions, ensuring a reliable and efficient trading environment.

Furthermore, BSE enhances accessibility to capital markets via its SME platform, catering to smaller enterprises. The exchange’s commitment to market integrity and growth is evident through initiatives like direct access for individual investors to government securities, showcasing its pivotal role in the financial ecosystem.

Apar Industries Ltd

The Market Cap of Apar Industries Ltd is Rs. 32,244.51 crore. This firm posted a monthly return of 8.43% and an annual gain of 184.79%, with only 4.35% distance from its 52-week high.

Apar Industries excels in manufacturing conductors, cables, and specialty oils, serving various sectors with its high-quality products. The company’s diverse offerings support crucial infrastructure needs globally, strengthening its market position as a leading supplier.

The company’s innovative approach to developing and supplying transformer oils, white oils, and various types of cables demonstrates its commitment to quality and customer satisfaction. Apar’s manufacturing facilities spread across India, including Maharashtra and Gujarat, play a critical role in its operational success.

360 ONE WAM Ltd

The Market Cap of 360 ONE WAM Ltd is Rs. 29,607.60 crore. The stock has a modest monthly return of 2.24% and an impressive annual increase of 82.92%, standing 12.32% below its yearly high.

Formerly known as IIFL Wealth Management, 360 ONE WAM Ltd specializes in offering tailored wealth and asset management services, including investment advisory and financial product distribution. The firm caters to a diverse client base, providing structured investment solutions that address unique financial goals.

The company divides its operations into wealth management and asset management, ensuring comprehensive service coverage from advisory and broking to managing extensive asset portfolios. This integrated service model supports both individual wealth growth and corporate financial structuring, making it a pivotal player in India’s financial landscape.

Aegis Logistics Ltd

The Market Cap of Aegis Logistics Ltd is Rs. 24,929.78 crore. It achieved a staggering monthly return of 40.18% and an annual return of 135.11%. It is currently 8.69% away from its 52-week high.

Aegis Logistics Limited specializes in the logistics of oil, gas, and chemicals, providing essential infrastructure for the storage and distribution of these commodities. Its operations are crucial for supporting the energy sector’s supply chain across India.

With terminals strategically located in major ports like Mumbai and Mangalore, Aegis efficiently handles vast quantities of LPG and chemicals, ensuring swift delivery and high safety standards. The company’s expertise in managing complex logistics operations makes it a critical service provider in India’s energy landscape.

Century Textiles and Industries Ltd

The Market Cap of Century Textiles and Industries Ltd is Rs. 24,580.79 crore. The company enjoys a monthly growth of 10.47% and an annual surge of 182.00%, placing it just 1.94% below its 52-week peak.

Century Textiles and Industries Limited operates in multiple sectors including textiles, cement, and real estate. It is well-known for its diversified product range and strong market presence in each of these sectors.

The company’s real estate projects and high-quality textile products continue to drive its growth, with innovations in fiber technology and sustainable practices. Its expansive industrial operations underscore its integral role in India’s economic development.

Central Depository Services (India) Ltd

The Market Cap of Central Depository Services (India) Ltd is Rs. 22,420.99 crore. It recorded a monthly return of 4.04% and an impressive annual return of 108.56%, with its stock price nearing its peak, just 5.87% away.

Central Depository Services (India) Limited is critical to the functioning of India’s financial markets, providing depository and data management services. It plays a pivotal role in ensuring the security and efficiency of securities transactions in the electronic domain.

The company’s services, such as dematerialization and transaction handling, streamline operations for a wide range of financial instruments. Its contributions to e-voting and other digital solutions support transparent and efficient corporate governance.

Amara Raja Energy & Mobility Ltd

The Market Cap of Amara Raja Energy & Mobility Ltd is Rs. 22,148.81 crore, boasting a monthly increase of 24.86% and an annual rise of 113.14%. The stock is 14.90% away from its highest value over the past year.

Formerly known as Amara Raja Batteries, this company is renowned for its advanced battery technologies and automotive applications. Its commitment to innovation in energy storage solutions is evident in its extensive product range.

The company serves a broad spectrum of industrial sectors with its batteries, contributing to the critical infrastructure in telecommunications, railways, and power. Its forward-looking approach to energy solutions positions it as a leader in sustainable and efficient energy practices.

Castrol India Ltd

The Market Cap of Castrol India Ltd is Rs. 19,095.01 crore. It has achieved a monthly return of 6.08% and an annual growth of 71.01%. The stock is currently 12.98% away from its 52-week high.

Castrol India Limited is a leader in the production and marketing of high-performance lubricants, serving both the automotive and industrial sectors in India. It is known for its high-quality products that enhance the efficiency and longevity of engines and machinery.

The company’s extensive distribution network ensures its presence in virtually every corner of the market, making its products accessible to a wide range of consumers and industries. Its commitment to innovation and technology in lubricants sets it apart in the competitive market.

Capri Global Capital Ltd

The Market Cap of Capri Global Capital Ltd is Rs. 18,309.54 crore. Despite a monthly decline of 6.12%, the annual return stands at 21.72%. The stock is 29.01% away from its yearly high.

Capri Global Capital Limited is pivotal in providing financial solutions, particularly in the MSME and housing loan segments. Its approach focuses on addressing the needs of underserved markets, offering customized financial products.

The company’s commitment to empowering small businesses and facilitating affordable housing finance underscores its role in financial inclusion. Its innovative financing models and customer-centric approach drive its growth and popularity in the financial sector.

Birlasoft Ltd

The Market Cap of Birlasoft Ltd is Rs. 17,064.65 crore, with a monthly return of 15.70% and an annual improvement of 100.43%. The stock is 27.13% away from its peak over the past year.

Birlasoft Limited excels in providing advanced IT solutions and services, focusing on digital technologies such as cloud computing, data analytics, and enterprise software. It serves a global clientele across diverse sectors, enhancing business processes through technological innovation.

The company’s strong focus on digital transformation services positions it as a partner of choice for businesses looking to modernize operations and drive efficiency. Its comprehensive service offerings and commitment to quality ensure sustained growth and client satisfaction.

Nifty Smallcap250 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.