NSE Indices Launches Nifty Smallcap 500 Index

NSE Indices Limited, the index services subsidiary of the National Stock Exchange of India, has announced the launch of a new broad market index called the Nifty Smallcap 500 Index. The announcement was made through a press release issued in Mumbai on January 23, 2026.

The introduction of this index marks an important development in the small cap segment of the Indian equity market.

What is the Nifty Smallcap 500 Index

The Nifty Smallcap 500 Index is designed to track the performance of small cap companies in India. It focuses on companies that come after the Nifty Midcap 150 Index in terms of market capitalization.

Key features of the index include

• The index tracks the top 500 small cap stocks
• Stock selection is based on six-month average full market capitalization
• The index follows a free float market capitalization based weighting method

This structure allows the index to represent a broad section of the small cap market.

Base Date and Base Value of the Index

The Nifty Smallcap 500 Index has a clearly defined starting point to measure performance over time.

Important details include

• Base date of the index is April 01, 2005
• Base value of the index is set at 1000

These details help investors and market participants understand long term performance trends.

Index Review and Reconstitution Process

To ensure that the index remains relevant and reflects current market conditions, it follows a periodic review process.

The index will be reconstituted on a semi-annual basis

• One review will take place in March
• Another review will take place in September

This process helps maintain consistency and accuracy in representing the small cap segment.

Purpose and Use of the Nifty Smallcap 500 Index

The newly launched index is expected to play an important role in the investment ecosystem.

According to the press release, the index is expected to

• Act as a benchmark for asset managers
• Serve as a reference index for passive investment products
• Be tracked by exchange traded funds, index funds, and structured products

This makes the index relevant for both institutional participants and product providers.

Why the Launch of the Nifty Smallcap 500 Index Matters

The launch of the Nifty Smallcap 500 Index expands the range of market benchmarks available to investors and market professionals. By covering a wider universe of small cap stocks, the index provides a comprehensive view of this segment of the equity market.

As a broad market index, it is expected to support benchmarking, product creation, and performance comparison within the small cap space.

Link to the press release - https://www.niftyindices.com/Press_Release/ind_prs23012026.pdf