The Nifty Smallcap250 Quality 50 Index includes top 50 companies from its parent Nifty Smallcap 250 index, selected based on their ‘quality’ scores. The quality score for each company is determined based on return on equity, financial leverage (except for financial services companies) and earning per share (EPS) growth variability of each stock analysed during the previous 5 financial years. The weight of each stock in the index is based on a combination of stock’s quality score and its free float market capitalization.