Nifty Financial Services Slips 0.14% to 26,769.60; Shriram Finance Gains by 2.78%, Kotak Bank Down by 6.82%

As of 12:34 PM on July 28, 2025, the Nifty Financial Services Index was down by 38.40 points or 0.14%, trading at 26,769.60. The decline came amid weakness in select heavyweight stocks, particularly in banking and lending segments.

Shriram Finance, HDFC AMC Among Top Gainers In The Index

Leading the gainers was Shriram Finance, which rose by 2.78% to ₹633. HDFC Asset Management Company (HDFC AMC) followed with a 1.13% gain to ₹5,614.50. SBI Life, Bajaj Finserv, and Jio Financial Services also posted moderate gains, ranging from 0.88% to 0.98%.

Kotak Bank And SBI Card Drag The Index Lower

On the losing side, Kotak Mahindra Bank saw a sharp fall of 6.82% to ₹1,979.80, making it the biggest drag on the index. SBI Card declined 5.14% to ₹842.80, while LIC Housing Finance, Bajaj Finance, and Axis Bank registered smaller losses between 0.72% and 1.47%.

Index Structure And Key Components

The Nifty Financial Services Index is made up of 20 stocks listed on the NSE. It includes a mix of banks, insurance companies, housing finance firms, and other financial services providers. The index is calculated using the free float market capitalisation method, meaning its level reflects the total market value of all stocks based on publicly traded shares.

Major Constituents And Weightages

Top companies in the index by weight include HDFC Bank (32.54%), ICICI Bank (21.97%), Axis Bank (7.32%), Kotak Mahindra Bank (6.93%), and State Bank of India (6.86%). Other notable stocks include Bajaj Finance, Bajaj Finserv, Jio Financial Services, Shriram Finance, and HDFC Life.

Also Read: Bank Nifty Trades Flat on July 28; ICICI, HDFC Gain While Kotak Bank Dips

Nifty Financial Services Performance And Fundamentals

The index has shown a solid track record over time, with a 1-year return of 17.09% and a 5-year CAGR of 21.82%. Its price-to-earnings (P/E) ratio stands at 18.0, and its price-to-book (P/B) ratio is 3.08. It also has a dividend yield of 1.15%. The index maintains a strong correlation (0.99) with the Nifty 50, reflecting its role as a key market indicator.

Conclusion

Despite today's minor drop, the Nifty Financial Services Index remains fundamentally strong with steady long-term growth potential. While heavyweight banks like Kotak Mahindra and SBI Card dragged the index lower today, gains in stocks like Shriram Finance and HDFC AMC helped cushion the fall. Investors continue to watch the sector closely due to its high contribution to the overall market.

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.

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