The Nifty Financial Services Index represents the performance of India’s financial sector. It covers banks, NBFCs, insurance companies, housing finance firms, and other financial service providers. The index includes 20 companies listed on the NSE and helps investors understand how the overall financial market is performing.
This index is calculated using the free-float market capitalization method. This means its value is based on the total market value of the shares that are available for public trading, compared to a base market value. It is often used to benchmark mutual funds, create index funds, ETFs, and other structured investment products.
The index is updated in real time and follows a capped free-float method. It was launched on September 7, 2011, with the base date set as January 1, 2004, using a base value of 1,000. The index is reviewed and rebalanced twice a year to keep it relevant and reflective of market changes.
The index has shown steady growth across periods. Its dividend yield stands at 2.83%, with a P/E ratio of 17.86 and a P/B ratio of 2.87. It has delivered strong long-term returns, including 17.38% over one year, 43.84% over three years, and 94.25% over five years. It is also closely correlated with the Nifty 50, showing a correlation of 0.97–0.99.
The index is heavily dominated by major Indian banks and financial firms. The top-weighted stocks include:
Other notable companies include Bajaj Finance, Bajaj Finserv, Shriram Finance, BSE Ltd., and Jio Financial Services.
As of the latest update, the Nifty Financial Services Index stands at 27,729, up 162.85 points (0.59%).
Read More, ₹1,000 SIP Grows to ₹1.13 Crore: Nippon India Vision Large and Mid Cap Fund’s 30-Year Compounding Story!
Among the top gainers in the Nifty Financial Services Index, SBICard led the list, rising to ₹891.15 with a gain of 1.49%, followed closely by Shriram Finance, which moved up to ₹834.70 with a 1.38% increase. HDFC Bank also advanced, trading at ₹1,010.40 after gaining 1.24%, while Cholamandalam Finance climbed to ₹1,679.00, up 1.16%. Axis Bank rounded off the gainers, rising 0.71% to ₹1,284.90.
On the other hand, the session saw some notable losers. PFC declined to ₹366.75, down 0.80%, and REC Ltd. slipped to ₹355.65, losing 0.71%. BSE Ltd. also fell, trading at ₹2,842.00 after a 0.57% drop. SBI Life edged lower by 0.23% to ₹2,017.90, while ICICI Prudential recorded a mild decline of 0.13%, settling at ₹610.10.
The Nifty Financial Services Index is a key indicator of India’s financial sector strength. With strong long-term returns, high liquidity, and a diversified mix of leading financial companies, it serves as a reliable benchmark for investors and fund managers. Its steady performance and broad coverage make it an essential tool for tracking the health of India’s financial markets.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Nov 24, 2025, 11:51 AM IST
Kusum Kumari
Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.
Know MoreWe're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
EN