Nifty Financial Services Index Gains 0.96%, Led by Banks and Housing Finance Stocks

The Nifty Financial Services Index is a key benchmark that tracks the performance of India’s financial sector, covering a broad range of companies including banks, housing finance firms, insurance providers, and other financial services institutions. The index offers a comprehensive view of how this critical segment of the economy is performing.

As of April 28, 2025, the index closed at 26,285.70, gaining 249.60 points or 0.96% for the day.

Top Performers and Laggards

On April 28, the top gainers in the Nifty Financial Services Index included:

• State Bank of India (SBIN) share price ₹820.25, up 2.70%

• LIC Housing Finance (LICHSGFIN) share price ₹607.00, up 2.50%

• Muthoot Finance (MUTHOOTFIN) share price ₹2,136.50, up 2.07%

• REC Ltd (RECLTD) share price ₹430.85, up 2.05%

• Axis Bank (AXISBANK) share price ₹1,190.00, up 2.03%

Meanwhile, the day’s top losers were:

• Shriram Finance (SHRIRAMFIN) share price ₹619.00, down 5.53%

• SBI Cards (SBICARD) share price ₹857.75, down 1.13%

• ICICI Lombard General Insurance (ICICIGI) share price ₹1,843.70, down 0.56%

• Cholamandalam Investment and Finance (CHOLAFIN) share price ₹1,536.20, down 0.47%

• HDFC Life Insurance (HDFCLIFE) share price ₹701.85, down 0.38%

Read More: RBL Bank’s Share Price Jumps 6% Post Q4 FY25 Earnings; Know What’s Driving the Rally. 

Structure and Calculation Method

The Nifty Financial Services Index consists of 20 stocks listed on the National Stock Exchange (NSE). It is computed using the free-float market capitalisation method, meaning the index value reflects the collective free-float market value of its constituents relative to a base market capitalisation.

The index was launched on September 7, 2011, but its base date is January 1, 2004, set with a base value of 1000. It is recalculated in real-time and is rebalanced semi-annually to ensure it remains representative of the evolving financial sector.

An important variant of the index is the Nifty Financial Services Total Returns Index, which takes into account dividends received from the constituent stocks.

Portfolio and Fundamental Metrics

Some key characteristics of the index portfolio include:

• Dividend Yield: 2.9%

• Price-to-Earnings (P/E) Ratio: 16.8

• Price-to-Book (P/B) Ratio: 0.86

• Standard Deviation: 21.36% annually

• Correlation with Nifty 50: 0.90

These metrics highlight the relatively stable yet dynamic nature of the financial sector compared to the broader market.

Major Constituents by Weightage

The top companies driving the Nifty Financial Services Index include:

• HDFC Bank Ltd. (32.51%)

• ICICI Bank Ltd. (22.25%)

• Kotak Mahindra Bank Ltd. (7.46%)

• Axis Bank Ltd. (7.36%)

• State Bank of India (6.93%)

Other notable players include Bajaj Finance Ltd., Bajaj Finserv Ltd., Shriram Finance Ltd., Jio Financial Services Ltd., and HDFC Life Insurance Company Ltd.

Conclusion

The Nifty Financial Services Index serves as a vital indicator of India’s financial sector health, offering investors a focused view of a key segment that drives economic growth. Its diversified composition and real-time computation make it a useful tool for benchmarking, fund creation, and investment tracking within the dynamic world of Indian finance.

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 securities market are subject to market risks, read all the related documents carefully before investing.