Nifty 200 Index: Meaning, Components and Weighting

The Nifty 200 Index comprises 200 equity securities and includes all constituents of the Nifty 100 and Nifty Midcap 100 indices. It is designed to represent the performance of large- and mid-capitalisation companies in the Indian equity market.

The index is reviewed and updated twice a year in accordance with the rules set by NSE Indices Limited. These rules define how companies are selected, included, or removed from the index to ensure it continues to represent the eligible universe of listed companies.

Components Breakdown

Nifty 100
The Nifty 200 includes all constituents of the Nifty 100 Index.

Nifty Midcap 100
The remaining constituents of the Nifty 200 are drawn from the Nifty Midcap 100 Index.

Combined Structure
The Nifty 100 and Nifty Midcap 100 together form the Nifty 200 Index, subject to changes in their respective constituent indices.

The structure of the Nifty 200 Index is defined by its weighting approach, eligibility criteria, and constituent coverage, which together determine how the index reflects movements across a wide segment of the equity market.

Free-Float Market Capitalisation-Weighted

The Nifty 200 is computed using the free-float market capitalisation method. Under this approach, constituent weights are based on the free-float market value of the securities relative to the aggregate free-float market value of the index.

Sector Diversification

The index includes companies from multiple sectors represented in the Indian equity market, providing coverage across different industry segments.

Liquidity Consideration

The Nifty 200 derives its constituents from the Nifty 100 and Nifty Midcap 100 indices. These underlying indices have defined eligibility and liquidity-related criteria for constituent selection and review. Changes in their constituents are consequently reflected in the Nifty 200, subject to the index methodology.

Free-Float Methodology

The index applies a free-float adjustment while computing constituent weights. Only publicly available shares are considered, while promoter holdings, government stakes, and other strategic shareholdings are excluded. This approach aligns index weights with the portion of equity that is accessible in the secondary market and is consistent with the methodology adopted across NSE benchmark indices.

The Nifty 200 Index is referenced in a range of market-linked and analytical contexts across India’s equity ecosystem.

Retail participation 

At an individual level, the index functions as a consolidated indicator of movements across a large and mid-cap universe on the National Stock Exchange. It is commonly tracked to observe broad-based equity market behaviour rather than segment-specific trends.

Institutional and professional application

Within institutional and professional settings, the index is applied as a comparative reference for diversified equity portfolios and index-linked products. It is also cited in portfolio evaluation frameworks where alignment with broader market coverage is examined.

Portfolio structuring and product design

In product structuring, the Nifty 200 serves as the underlying reference for index-based mutual funds and exchange-traded funds. Its defined composition and methodology make it possible to replicate the index in line with applicable regulatory and disclosure requirements.

The Nifty 200 Index reflects the historical price performance of its constituent securities across large- and mid-capitalisation segments. Changes in the index level over time may reflect movements in constituent prices, changes in constituent weights, index rebalancing, and corporate actions, in accordance with the index methodology.

Changes in the Nifty 200 index level over time have been influenced by periodic index rebalancing, shifts in market capitalisation, and sector-level weight adjustments among constituent companies. This historical record outlines how both higher-capitalisation and mid-cap stocks have contributed to overall equity market movement under varying market conditions.

The Nifty 200 Index may serve as a reference or underlying index for certain market-linked products, subject to applicable regulatory requirements and the terms of the respective products. Such products are generally designed to track the performance of the Nifty 200 Index based on its constituent weights and methodology as defined by NSE Indices Limited.

Index Mutual Funds Linked to the Nifty 200

Certain asset management companies may offer index mutual fund schemes that use the Nifty 200 Index as their underlying index. These schemes generally follow a passive investment approach and seek to track the performance of the index by investing in its constituent securities, subject to the scheme's stated investment objective and applicable regulatory requirements. Scheme documents and periodic disclosures provide information on portfolio composition and tracking metrics.

Exchange-Traded Funds (ETFs) Based on the Nifty 200

ETFs based on the Nifty 200 Index are listed and traded on recognised stock exchanges. Their objective is generally to track the performance of the underlying index, subject to factors such as expenses and tracking difference. Information relating to portfolio holdings, expenses, tracking error, and other applicable parameters is disclosed in accordance with regulatory requirements.

The Nifty 200 Index comprises 200 equity securities from the Nifty 100 and Nifty Midcap 100 indices and is designed to represent large- and mid-capitalisation segments of the Indian equity market. The constituents of the Nifty 200 are derived from the Nifty 100 and Nifty Midcap 100 indices, which have their respective eligibility and constituent-selection methodologies. The index is reviewed and updated on a semi-annual basis by NSE Indices Limited in accordance with its published methodology.