About Nifty Smallcap 50 The Nifty Smallcap 50 Index is a stock market index that represents the performance of the small-cap segment of the Indian market. It comprises 50 companies selected based on their average daily turnover from the top 100 companies in the Nifty Smallcap 250 Index. The index is calculated using the free float market capitalization method, reflecting the total free float market value of all its constituent stocks. It is used for various purposes, including benchmarking fund portfolios and launching index funds, ETFs, and structured products.