![]() ![]() List of Bank Stock Source: NSE, Tavaga Research (as of April 13th, 2023)Īs the largest three banks together constitute more than 50 per cent of the Bank Nifty weightage, the movement in their stock prices considerably affects the index’s value as well. The table below illustrates the breakup of the index bank stocks and their weightage:. All the figures above are as of April 13, 2023. The largest banks on the Nifty bank index are HDFC Bank, with around Rs 9.28 lakh crore market cap and 32.8 per cent weightage, ICICI Bank with Rs 6.15 lakh crore market cap and 27.11 per cent weightage, and Kotak Mahindra Bank with Rs 3.67 lakh crore market cap and a weightage of 11.46 per cent on the index. The NSE bank stocks chosen for the Nifty bank index were selected based on their free-float market capitalization and include private and public sector banks. So, no single bank stock has a weight of more than 35% on the index, while the weight of the top three stocks together totals 71% of the overall index. The Nifty bank index, being a benchmark for the banking industry, is supposed to be representative of the banking sector. The Bank Nifty share price is basically the value of the index at a particular point in time. The Bank Nifty index was created by the NSE in September 2003, to gauge the capital market performance of one of the critical service sectors in India, Banking.Īn index represents the performance of a segment of the financial market by tracking a group of diversified but representative constituent securities from the market, in a certain weightage ratio. ![]() The Nifty bank index which is also known as the ‘Bank Nifty’ index, is the index that tracks the banking sector comprising 12 banking stocks. One such index at India’s largest stock exchange by volume, NSE, is the Bank Nifty. From the flagship indices at India’s premier stock exchanges like the Nifty ( NSE) and Sensex ( BSE) to the sector-specific sub-indices that act as bellwethers of their industries, they are key to passive investments. As the passive investing universe sees more permissions being granted for and the launch of new products, indices at market exchanges are set to get more spotlight. ![]()
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