Bank Nifty
Bank Nifty or Nifty Bank, is a specific index within the larger Nifty family of indices managed by NSE Indices in India. Bank. Nifty was introduced in 2003 and has become a prominent index for investors interested in the Indian banking sector.
Nifty Bank Index comprised of the most liquid and capitalized Indian Banking stocks. It provides investors and market intermediaries with a benchmark that captures the capital market performance of Indian Banks.
Bank Nifty tracks the performance of the 12 largest and most liquid banking stocks listed on the National Stock Exchange of India (NSE).
Bank Nifty serves as a vital benchmark for the Indian banking sector. Its performance reflects the overall health and sentiment of the banking industry. Investors and analysts use Bank Nifty to track the banking sector’s growth and make informed investment decisions..
The banking sector can be more volatile than the broader market, so Bank Nifty can experience larger price swings compared to the NIFTY 50.
Similar to Nifty 50, Bank Nifty is popular for derivatives trading, allowing investors to speculate on future price movements of the banking sector.
Bank Nifty tracks the performance of the 12 largest and most liquid banking stocks listed on the National Stock Exchange of India (NSE). The weightage of each bank in the index is based on its free-float market capitalization, meaning companies with a larger market value have a greater influence on the Bank Nifty’s movement. The composition of the index is reviewed periodically to ensure it reflects the current banking landscape.
The list of the 12 banks in Bank Nifty:
BANKS Weightage
- HDFC BANK 27.04%
- SBIN 11.27%
- KOTAKBANK 11.72%
- ICICIBANK 23.03%
- AXISBANK 11.18%
- INDUSINDBK 5.58%
- BANDHANBNK 1.98%
- BANKBARODA 1.84%
- FEDERALBNK 1.68%
- AUBANK 2.69%
- IDFCFIRSTB 1.08%
- PNB 0.91%
Market Analysis:
The Bank Nifty is generally more volatile than the Nifty 50. This means its price can fluctuate more significantly in a single day.
The performance of the Bank Nifty can be influenced by factors specific to the banking sector, such as interest rate movements, non-performing assets, and credit growth.