NIFTY MIDCAP Index Performance Trends

_{Published on: 23 Mar, 2025 14:20}

NIFTY MIDCAP 150 Index data tells us:  

• Short-term investing carries high risk. The 1-year returns show big losses like -60.75% in 2009 alongside huge gains like +133.17% in 2010.  
• Long-term investing looks safer. The 7-year, 10-year, and 15-year CAGRs are consistently positive, averaging around 14–15%.  
• Recent performance is strong. In 2024, the 1-year return was 56.26%, and the 10-year CAGR hit 21.67%, reflecting robust growth in India’s midcap space.  
• Suggestion: If you’re wary of risk, think long-term. Midcap stocks in this index have shown they can deliver steady growth over time, even if they’re bumpy year-to-year.

Introduction

We’re diving into the performance of the NIFTY MIDCAP 150 Index from 2006 to 2025. This dataset covers yearly returns (1-year) and longer-term growth rates (3-year, 5-year, 7-year, 10-year, and 15-year CAGRs). Our aim is to spot trends and understand what they mean for investors in India’s midcap space. We’ll look at averages, highs and lows, and how often returns were positive or negative.

 

Short-Term Performance (1-Year Returns)

The 1-year returns of the NIFTY MIDCAP 150 Index are quite volatile. The standard deviation (a measure of variation) is high at 40.47. The worst year was 2009 with a -60.75% return, likely due to the global financial crisis, while the best was 2010 with a +133.17% return, reflecting a strong recovery. The average return across 19 years is 20.25%, but the median (middle value) is only 7.44%, showing that a few big years skew the average. Out of 19 years, 15 had positive returns, and 4 were negative. Standout years include 2015 (+75.13%) and 2024 (+56.26%), highlighting the potential for high gains in favorable market conditions.

Medium-Term Performance (3-Year and 5-Year CAGR)

Over 3-year and 5-year periods, the NIFTY MIDCAP 150 Index shows more stability. The 3-year CAGR averages 13.89%, ranging from -14.8% in 2009 (post-crisis impact) to 34.3% in 2012 (a strong rebound phase). The 5-year CAGR averages 14.64%, with less variation (standard deviation of 7.32), ranging from -0.22% in 2013 to 24.37% in 2024. Most periods were positive: 15 out of 17 for 3-year CAGRs and 14 out of 15 for 5-year CAGRs. Recent performance is impressive, with 2024 showing a 26.46% 3-year CAGR and 24.37% 5-year CAGR, suggesting midcap stocks have been thriving lately.

Long-Term Performance (7-Year, 10-Year, and 15-Year CAGR)

Longer periods reveal even more consistency for the NIFTY MIDCAP 150 Index. The 7-year CAGR averages 14.29%, with no negative periods, ranging from 5.61% in 2014 to 21.6% in 2016. The 10-year CAGR averages 14.79%, also all positive, from 9.29% in 2016 to 21.67% in 2024. The 15-year CAGR averages 14.48%, with all periods positive, ranging from 10.83% in 2023 to 21.52% in 2024. These steady long-term returns highlight the growth potential of midcap stocks over extended horizons, even through market ups and downs.

Volatility and Risk Analysis

Short-term returns in the NIFTY MIDCAP 150 Index are risky, with a standard deviation of 40.47 for 1-year returns. Big swings happen—like the -60.75% drop in 2009 and the +133.17% jump in 2010. But over longer periods, volatility shrinks: the standard deviation falls to just 4.19 for 15-year CAGRs. Negative returns also become rare as timeframes extend: 4 negative 1-year periods, but none for 7-year, 10-year, or 15-year CAGRs. This suggests midcap stocks can be a rollercoaster in the short run but smooth out over time.

Key Takeaways and Implications

Here’s what the NIFTY MIDCAP 150 Index data tells us:

• Short-term investing carries high risk. The 1-year returns show big losses like -60.75% in 2009 alongside huge gains like +133.17% in 2010.

• Long-term investing looks safer. The 7-year, 10-year, and 15-year CAGRs are consistently positive, averaging around 14–15%.

• Recent performance is strong. In 2024, the 1-year return was 56.26%, and the 10-year CAGR hit 21.67%, reflecting robust growth in India’s midcap space.

• Suggestion: If you’re wary of risk, think long-term. Midcap stocks in this index have shown they can deliver steady growth over time, even if they’re bumpy year-to-year.

Conclusion

The NIFTY MIDCAP 150 Index data reveals a clear pattern: short-term returns can be unpredictable, but long-term investing offers steady growth. For investors in India’s midcap market, this suggests focusing on longer horizons to reduce risk and capture consistent returns. However, past performance isn’t a sure predictor of the future. You’d need to consider other factors—like economic conditions or sector trends—to make informed choices. For now, the data says: stay patient with midcaps, and the numbers tend to work in your favor over time.