Mid Cap Index

Mid Cap Index

Market Capitalization

The entire dollar market value of a company's outstanding shares is referred to as market capitalization. In simpler terms it refers to the entire market value of all of a company's stock. The market capitalization may be a useful statistic for identifying which stocks are worth investing in. The number of shares issued might fluctuate if the value of the shares changes significantly.

 

The market capitalization of a corporation is derived by multiplying the number of outstanding shares by the stock price per share. Companies that expand regularly and give stability in the face of market volatility should also be included in your investment portfolio.​

Mid Cap Index

Depending on their market capitalization, companies are classified as mid cap index, large cap index or small cap index.

 

The term "mid-cap" refers to corporations with a market capitalization of between $2 billion and $10 billion. In the Indian Market, Companies with a market capitalization of more than Rs 5,000 crore but less than Rs 20,000 crore are classified as mid-cap or Mid Cap Index.

Mid Cap Firm

Mid-Cap firms are those with a market capitalization rating of 101 to 250, according to SEBI's categorization. Mid cap Index firms are anticipated to grow and expand their profits and market share. They are in the midst of their growth curve in terms of both efficiency and productivity.

Because mid-cap firms are less prepared to deal with market volatility versus large-cap corporations, the risk is larger. The fund manager's purpose is to invest in mid cap index firms that have the potential to grow in the future.

 

The Growth potential is moderate. Profits, market share, and productivity are likely to rise. Mid-cap stocks are generally in the midst of their growth curve. Mid cap stocks strike a happy medium between growth and stability.

 

Mid index cap firms are able to obtain the finance they require to expand, and typically do well throughout the growth phase of the economic cycle.

What are mid cap companies? 

Mid-cap companies, as the name implies, are located in the midway, between large and small cap companies. Companies with a market value of between 5,000 and 20,000 crore rupees are now classified as mid cap.

 

The enticing aspect of this company appears to be more appealing. Mid-cap investors understand that when compared to large-cap equities, mid-cap stocks offer significantly better growth. Mid-cap companies also have reduced volatility when compared to small-cap equities.

 

Another advantage of mid-cap companies is that they provide excellent diversification for an investor's portfolio

What are its features?

Now let’s take a look at some of the best features of mid cap companies. The most important features are as following-

1. Minimal risk: One of the best qualities of mid cap indexes is that these firms are widely known for reacting to market volatility with less vigor. But if we compare it to the large cap index then at the moment of market contraction these offer a comparatively low stability.

 

2. Diversity: Variation is another mid-cap index of other aspects to consider. Such index shares are typically on a broader spectrum, bordering both small size firms and large cap stocks. These shares may alter depending on the risk and return implications. When seen from a different angle, mid-cap companies provide greater stability when they are in the development stage rather than focusing on providing a higher return. The same cannot be said for all such companies. Some might have simply moved from a tiny firm so as a result these deliver a bigger return rather than increased stability. Overall, it is entirely dependent on the company's circumstances.

 

3. Growth Prospects: - This is one of the strongest and most tempting aspects of mid-cap stocks. Mid-cap stocks have a strong potential for development since they have a better possibility to improve their revenue, efficiency, and customer base. Therefore an investor can take it as a really fantastic alternative because such a firm has a better probability that it gains success overnight throughout market growth which will dramatically boost their profit.

 

4. Liquidity: The nicest thing about mid cap stocks is that they are often more liquid than small cap stocks. Companies with such stocks are well-known, and those who invest in them usually have a high level of confidence.

100 Best Mid Cap Stocks Companies

Now we will look at the 100 best Mid cap stocks firms that are worth considering. So let’s dive right in-

  1. Procter & Gamble Health Ltd

  2. Gillette India Ltd(M)

  3. Aegis Logistics Ltd(M)

  4. Amara Raja Batteries Ltd(M)

  5. Bajaj Electricals Ltd(M)

  6. Balrampur Chini Mills Ltd(M)

  7. Century Textiles & Industries Ltd(M)

  8. BASF India Ltd(M)

  9. BEML Ltd(M)

  10. Tata Steel BSL Ltd(M)

  11. Blue Star Ltd(M)

  12. CESC Ltd(M)

  13. Chambal Fertilizers and Chemicals Ltd(M)

  14. Exide Industries Ltd(M)

  15. Bharat Heavy Electricals Ltd(M)

  16. Mangalore Refinery And Petrochemicals Ltd(M)

  17. E.I.D. - Parry (India) Ltd(M)

  18. EPL Ltd(M)

  19. Finolex Cables Ltd(M)

  20. Godfrey Phillips India Ltd(M)

  21. Godrej Industries Ltd(M)

  22. HFCL Ltd(M)

  23. Kajaria Ceramics Ltd(M)

  24. Lakshmi Machine Works Ltd(M)

  25. LIC Housing Finance Ltd(M)

  26. The Ramco Cements Ltd(M)

  27. NIIT Ltd(M)

  28. Birla Corporation Ltd(M)

  29. Prism Johnson Ltd(M)

  30. Sundram Fasteners Ltd(M)

  31. Supreme Petrochem Ltd(M)

  32. SKF India Ltd(M)

  33. Deepak Fertilizers And Petrochemicals Corporation Ltd(M)

  34. Gujarat Narmada Valley Fertilizers & Chemicals Ltd(M)

  35. Pfizer Ltd(M)

  36. Akzo Nobel India Ltd(M)

  37. EIH Ltd(M)

  38. Apollo Tyres Ltd(M)

  39. Tata Investment Corporation Ltd(M)

  40. Bombay Burmah Trading Corporation Ltd(M)

  41. Borosil Renewables Ltd(M)

  42. Vardhman Textiles Ltd(M)

  43. The Phoenix Mills Ltd(M)

  44. Zensar Technologies Ltd(M)

  45. Cholamandalam Financial Holdings Ltd(M)

  46. GMM Pfaudler Ltd(M)

  47. Westlife Development Ltd(M)

  48. Grindwell Norton Ltd(M)

  49. Bayer CropScience Ltd(M)

  50. Chemplast Sanmar Ltd(M)

  51. Alkyl Amines Chemicals Ltd(M)

  52. Astrazeneca Pharma India Ltd(M)

  53. JB Chemicals & Pharmaceuticals Ltd(M)

  54. VIP Industries Ltd(M)

  55. Graphite India Ltd(M)

  56. Garware Technical Fibers Ltd(M)

  57. Can Fin Homes Ltd(M)​

  58. Reliance industry

  59. TCS

  60. HDFC Bank

  61. Hindustan Unilever

  62. NIFTY MIDCAP 150

  63. TTML

  64. LINDEINDIA

  65. NHPC

  66. VINATIORGA

  67. TATACOMM

  68. SRTRANSFIN

  69. ABBOTINDIA

  70. HAPPSTMNDS

  71. INDIANB

  72. GSPL

  73. ZEEL

  74. ABB

  75. BANKINDIA

  76. IDEA

  77. NIACL

  78. OFSS

  79. AIAENG

  80. IEX

  81. IGL

  82. OIL

  83. PETRONET

  84. ESCORTS

  85. ZFCVINDIA

  86. SUMICHEM

  87. KANSAINER

  88. BLUEDART

  89. ENDURANCE

  90. TVSMOTOR

  91. GODREJIND

  92. SKFINDIA

  93. INDHOTEL

  94. SOLARINDS

  95. CROMPTON

  96. 3MINDIA

  97. CUMMINSIND

  98. L&TFH

  99. GRINDWELL

  100. IDBI

Benefits of investing in mid cap stocks

There are various amazing benefits when it comes to investing in the mid cap stocks. Among the several benefits of investing in mid-cap stocks are:

1. Higher Growth and higher return- As the industries keep growing then we can hope that the companies are growing at a faster pace. If they are selected in the right way they can provide a very amazing stimulus to the return in your portfolio. 


2. Underfollowed- Generally, the mid cap stocks companies have lower number of analysts. Investors following are also less in number. All this allows smart investors to grow their investment at a faster rate.

 
3.Lower Liquidity and Higher risk- Even though the mid cap stocks are less risky as compared to the small cap investments, you can still call them a little risky investments. The best thing is they can rise up all of a sudden on a single positive sentiment. 
 

Why should we invest in the Mid Cap Index?

There are numerous factors that would drive somebody to invest in the Mid Cap Index. Let's take a look at some of the most important reasons why an investor should invest in mid-cap stocks.

 

  • Ease of growth—When compared to small cap companies, mid cap equities in India have a much greater chance of raising funding through credit. It has the potential for both growth and expansion as a result of this.

 

  • Less Analyzed- Most mid-cap stocks are not analyzed early in their development, which results in restricted attention from seasoned investors and huge institutions. This essentially translates to inexpensive pricing, making it quite affordable to add it in your portfolio.

 

  • Return Potential- The strongest reason to invest in a midcap index is its return potential. There is significant room for value appreciation as well as huge dividends.

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