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Statistics Overview
Days Range
Nifty Bank Companies
|
Company
 |
LTP
|
Change
|
Day Range
|
|
|---|---|---|---|---|
|
AU Small Finance |
₹750.95 |
-22.50 (-2.91%) |
₹749.00 - ₹772.55 |
|
|
Axis Bank |
₹950.85 |
24.75 (2.67%) |
₹927.60 - ₹953.90 |
|
|
Bandhan Bank |
₹263.50 |
-1.90 (-0.72%) |
₹262.00 - ₹267.40 |
|
|
Bank of Baroda |
₹185.65 |
-1.10 (-0.59%) |
₹185.45 - ₹187.80 |
|
|
Federal Bank |
₹127.30 |
1.15 (0.91%) |
₹126.65 - ₹128.10 |
|
|
HDFC Bank |
₹1,604.40 |
-2.10 (-0.13%) |
₹1,602.45 - ₹1,616.50 |
|
|
ICICI Bank |
₹946.75 |
8.60 (0.92%) |
₹943.00 - ₹951.80 |
|
|
IDFC First Bank |
₹73.70 |
0.80 (1.10%) |
₹73.05 - ₹74.10 |
|
|
IndusInd Bank |
₹1,301.80 |
13.60 (1.06%) |
₹1,282.65 - ₹1,306.45 |
|
|
Kotak Mah. Bank |
₹1,924.90 |
-13.85 (-0.71%) |
₹1,922.25 - ₹1,951.50 |
|
|
Punjab Natl.Bank |
₹52.15 |
-0.15 (-0.29%) |
₹52.00 - ₹52.80 |
|
|
St Bk of India |
₹587.20 |
0.00 (0.00%) |
₹586.00 - ₹589.80 |
|
What is NIFTY Bank?
The NIFTY Bank is a sectoral index on the National Stock Exchange (NSE) that captures the performance and behaviour of large and liquid banks. It is a diversified index consisting of a maximum of 12 stocks which include public sector banks, private sector banks as well as other banks.
The NIFTY Bank index captures almost 13.34% and 86.13% of float-adjusted market capitalization on NSE and its banking universe, respectively. The total traded value of all index constituents is approximately 14.84% of the traded value of all stocks on NSE for the last six months.
This Bank index was launched on September 15, 2003, with the base year set to 2000 and the base value at 1000. Since then, NIFTY Bank’s share price has breached the levels of 35,000. It is reconstituted semi-annually in order to ensure that it continues to reflect the changing dynamics of the Indian financial markets and the economy. However, no single stock can exceed the cap of 33%, and the top 3 stocks must cumulatively adhere to the cap of 62%.
The NIFTY Bank index is governed by a three-tier structure that comprises the BOD (Board of Directors) of NSE Indices Limited, the Index Advisory Committee (Equity) and the Index Maintenance Sub-Committee. NIFTY Bank index has a variant in the form of the NIFTY Bank Total Returns Index. This index is ideal for launching index funds, ETFs and structured products and benchmarking fund portfolios. In fact, index funds linked to NIFTY Bank are currently being traded on Singapore Exchange (SGX).
How is NIFTY Bank calculated? How are stocks selected for inclusion in NIFTY Bank?
The NIFTY Bank share price is determined by weighing its 12 stocks on the basis of free-float market capitalization. Free float refers to the shares which are not held by promoters and are readily available to the public for trading.
The constituent stocks need to meet the following eligibility criteria:
- Should be listed on the National Stock Exchange.
- Should form a part of NIFTY 500, unless the number of eligible stocks falls below 10, then in such cases, the deficit number of stocks shall be selected from the universe of top 800 ranked stocks based on both average daily turnover and average daily full market capitalization data of the previous six months.
- Should be a part of the Banking sector.
- Should have a trading frequency of at least 90% in the past six months.
- Should have a listing history of at least six months.
- Should be tradeable in the F&O segment.
- A recently listed company (IPO) can be included if it meets the above eligibility criteria for a period of three months instead of six months.
- Should adhere to the cap of 33% in case of a single stock and 62% for the top 3 stocks cumulatively at the time of rebalancing.
The index value is calculated as follows –
Index value = Current free-float market capitalization/ (Base free-float market capitalization * Base Index Value)
The NIFTY Bank index is reviewed semi-annually based on six months of data ending January and July. The replacement of stocks in NIFTY Bank (if any) is implemented from the last trading day of March and September.
FAQs
The top 12 liquid large banks ranked by periodic capped free-float market capitalization are included in the NIFTY Bank index. Constituents include HDFC Bank, ICICI Bank, State Bank of India, Axis Bank, Kotak Mahindra Bank, IndusInd Bank, AU Small Finance Bank, Bandhan Bank, Bank of Baroda, Federal Bank, PNB, and IDFC First Bank.
Investing methods include:
- Direct investing: Can invest in individual stocks from Bank NIFTY
- NIFTY Futures: Long/Short positions maybe taken on bullish/bearish sentiments
- Bank NIFTY Options: Can invest in options of 3-month cycles- the near month, next month two and far month three
- Exchange-Traded Funds: Cost-effective method to passively replicate the NIFTY Bank index performance
A portfolio based on the NIFTY Bank index has usually outperformed a portfolio based on a ‘buy and hold’ strategy. The total returns on the index have approximated 7.98% in the past 5 years and 18.47% since its inception.
The basic objective is to reflect the performance of the 12 most liquid and large-cap banks in the Indian securities market. NIFTY Bank Index serves as a benchmark for investors and market intermediaries by capturing the capital market performance of Indian banks and provides the benefit of diversification, liquidity, and replicability.
