Bank Nifty Crosses ₹50 Lakh Crore Market Cap: HDFC Bank Leads the Charge

The Bank Nifty closed Friday’s session marginally higher at 59,752.70, coming within 250 points of the 60,000 milestone. Over the past three months, the index has gained 11%, significantly outperforming the 6.4% rise in the Nifty50 over the same period.

Bank stocks that pushed the Nifty50 to a fresh record high have achieved a landmark of their own. The combined market capitalisation of Nifty Bank constituents crossed the ₹50 lakh crore mark for the first time on Friday, November 28, underscoring the increasing dominance of the banking sector in India’s equity markets.

The Nifty Bank index extended its winning streak for the third consecutive session, ending the week with a 1.5% gain, its strongest weekly performance in six weeks.

Banks’ Growing Influence on Nifty50

Five major lenders now hold a combined 30.3% weight in the Nifty50, giving the banking sector substantial influence over the benchmark index’s direction. Financials also remain the largest sectoral exposure for foreign portfolio investors (FPIs), who invest nearly one-third of their India portfolios in this segment.

At the stock level, HDFC Bank, the most influential Nifty50 component, carries a weight of nearly 13%, followed by ICICI Bank at 8.3%. SBI, Axis Bank, and Kotak Mahindra Bank contribute weights of 3.4%, 3.1%, and the remaining share, respectively. Collectively, these five lenders determine 30.3% of the benchmark’s movement.

Also Read: NSE Revises Quantity Freeze Limits for Fin Nifty: What You Need to Know?

Market Capitalisation Leadership Within Bank Nifty

Within the Bank Nifty’s 12 constituents, HDFC Bank leads with a market value of ₹15.5 lakh crore, followed by ICICI Bank at around ₹10 lakh crore, and SBI at a little over ₹9 lakh crore. These top three banks account for about 70% of the index, with HDFC Bank and ICICI Bank together representing more than half of the total index valuation.

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