
The Nifty Financial Services Index tracks the overall performance of India’s financial sector, including banks, NBFCs, insurance companies, and housing finance firms. It consists of 20 stocks listed on the National Stock Exchange and is calculated using the free-float market capitalisation method. The index is widely used by investors for benchmarking portfolios and creating index funds and ETFs.
The index saw a sharp fall on March 23, declining by 810.30 points or 3.27% to 23,970.85. It opened at 24,400.95 and touched an intraday low of 23,895.70. The previous close was 24,781.15. The fall reflects heavy selling across all constituents, with all 20 stocks trading in the red, indicating strong bearish sentiment in the financial sector.
Heavyweight stocks such as HDFC Bank, ICICI Bank, State Bank of India, and Axis Bank contributed significantly to the decline. These stocks carry high weight in the index, so any fall in their prices has a strong impact on the overall index movement.
Among the worst-hit stocks were Muthoot Finance and Shriram Finance, both falling over 6%. REC Limited and Power Finance Corporation also declined more than 4–5%, adding further pressure on the index.
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The index currently trades at a P/E ratio of 15.83 and a P/B ratio of 2.61, with a free-float market capitalisation of around ₹40.84 lakh crore. It has a 52-week high of 28,562.50 and a low of 23,546.50. In terms of returns, the index has fallen 6.06% in 1 week, 15.76% in 1 month, and 13.36% year-to-date, showing continued weakness in the sector.
The sharp fall in the Nifty Financial Services Index highlights strong selling pressure across banking and financial stocks. With all constituents in the red and key heavyweights dragging the index lower, the sector remains under pressure, and investors may remain cautious in the near term.
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 or 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: Mar 23, 2026, 11:57 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.
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