NSE Indices Limited has officially launched the Nifty Smallcap 500 Index as of January 23, 2026. This broad market index tracks the top 500 small-cap stocks selected by market capitalization after the Nifty Midcap 150. Designed to serve as a robust benchmark for asset managers, the index paves the way for new ETFs and passive investment products, offering investors a diversified look into India’s emerging high-growth businesses.
NSE Indices has launched the NIFTY Smallcap 500 Index, expanding the benchmark universe for tracking India’s smallcap segment. The new index captures the performance of 500 smallcap companies, offering broader representation across sectors, themes, and emerging businesses within the domestic equity market.
The introduction of this index enhances market granularity, improves benchmarking for fund managers, and paves the way for new passive products such as index funds and ETFs. It also reflects the growing depth and diversification of India’s smallcap ecosystem as investor participation widens beyond large and mid-cap stocks.
For investors, the NIFTY Smallcap 500 provides a more comprehensive view of risk, growth potential, and cyclicality within the smallcap space compared to narrower indices.