Nifty Smallcap250 Momentum Quality 100 Share Price

The Nifty Smallcap 250 Momentum Quality 100 picks 100 small-cap stocks out of the wider Nifty Smallcap 250.

The stocks are chosen using two factors: Momentum (how well a stock's price has been moving) and Quality (how strong the company's financials are).

Since NSE Indices maintains the index, it serves as a reliable benchmark for fund managers to use for index funds, ETFs, and similar products built around this style of investing.

Anyone tracking the Nifty Smallcap 250 Momentum Quality 100 live is watching how these 100 small-cap stocks are moving. Remember, stocks here are picked for price strength and financial health, not just for size.

Selection of stocks in the Nifty Smallcap 250 Momentum Quality 100 index runs in two layers: Eligibility filter and Composite-score ranking.

1. Universe selection

   : The stock must already be in the Nifty Smallcap 250 index, with at least one year of listing history.

2. Pledge check

   : If the promoters have pledged more than 20% of their shares, the stock is dropped.

3. Circuit check

   : A non-F&O stock is dropped if it hits its upper or lower price circuit on 20% or more days in the last six months.

4. Trading activity check

   : The bottom 10% of stocks by turnover ratio, and the bottom 10% by six-month average daily turnover, are also removed.

5. Momentum score

   : Each remaining stock gets a momentum score from its six-month and twelve-month price returns, adjusted for how volatile the stock has been.

6. Quality score

   : A quality score is built from three things: return on equity, debt-to-equity ratio, and how steady the company's earnings have been over the last five years.

7. Top 100

   : The two scores (momentum and quality) are then added into a single combined score. The top 100 stocks make it into the Nifty Smallcap 250 Momentum Quality 100 index.

8. Review & rebalancing

   : The list is refreshed twice a year, in June and December.

The index does not use size alone to decide each stock's weight. It mixes size with the momentum-quality score. The simple version:

• Weight formula: Each stock's free-float market value is multiplied by its combined momentum-quality score. The result decides the stock's weight in the index. Stocks with better scores on both factors get more weight than stocks of similar size with lower scores.
• 3% cap: No single stock can carry more than 3% weight at each review. This prevents any one company from taking major control over the index.
• Live updates: The index value moves throughout the day as stock prices move; this is what feeds the Nifty Smallcap 250 Momentum Quality 100 share price tickers.
• Two versions: Along with the regular price index, a Total Returns version is also published. The Total Returns version includes dividends.

Let us look at some benefits of investing in NSE's Nifty Smallcap 250 Momentum Quality 100 stocks:

• Two-factor discipline: Inclusion relies on price strength and balance-sheet quality together. Hence, companies need to score well on both rather than just one of them.
• Factor-Based Approach: Combines momentum and quality factors within a single small-cap framework.
• Reduced single-stock concentration: The 3% cap applied at rebalance limits how much any single name can influence the index.
• Rules-based small-cap framework: The index follows a predefined rules-based methodology with scheduled reviews. Every addition and removal follows a written rulebook.
• Benchmark for factor-strategy products: The index is generally used as a benchmark for index funds and ETFs built around momentum-and-quality small-cap strategies.

With Anand Rathi's TradeMobi platform, investing in the Nifty Small Cap 250 Momentum Quality 100 or any of the NSE indices is simple.

Here's how to get started:

1. Step 1: Open / Login to Your Account

   
   Start by registering and opening your demat account and trading account.

2. Step 2: Explore Investment Options

   
   Search for relevant funds or ETFs that track the Nifty Small Cap 250 Momentum Quality 100 index.

3. Step 3: Choose Your Investment

   
   Pick a suitable option based on your understanding and risk appetite, and invest.

4. Step 4: Invest and Track

   
   Once invested, you can track the Nifty Small Cap 250 Momentum Quality 100 share price regularly — right from your dashboard.

5. Step 5: Stay Updated

   
   For more information, use research tools to follow developments in this domain.

On December 21, 2023, the Nifty Small Cap 250 Momentum Quality 100 index was introduced to track companies in the small-cap segment.

The index came in at a time when factor-based investing (using rules like momentum or quality to pick stocks) had already become popular in large-cap and mid-cap products in India. Bringing the same idea to the small-cap segment was a newer step.

Since its launch, the index has been used as a benchmark for index funds and ETFs focused on momentum and quality factors within the small-cap segment.