The Nifty Financial Services Index represents the performance of India’s financial sector, covering banks, insurance companies, housing finance firms, NBFCs, financial institutions and other financial service providers. The index includes 20 companies listed on the NSE, offering a broad view of the financial market. 

This index is often used by fund managers to benchmark portfolios and is also the foundation for ETFs, index funds and structured products. 

Index Characteristics

Launched on September 7, 2011, the Nifty Financial Services Index uses January 1, 2004 as its base date and has a base value of 1000. It is updated in real-time throughout market hours and includes 20 stocks. The index is rebalanced semi-annually to ensure it reflects current market conditions. 

Top Constituents by Weightage

The index is dominated by India’s biggest financial companies. HDFC Bank leads with the highest weight at 31.99%, followed by ICICI Bank at 20.36%, and State Bank of India (SBI) at 8.25%. Other major players include Axis Bank (7.49%), Kotak Mahindra Bank (6.56%), Bajaj Finance (5.89%), Bajaj Finserv (2.53%), Shriram Finance (2.22%), BSE (2.15%), and Jio Financial Services (2.13%). These companies have the strongest influence on daily index movements.

Fundamentals

The index currently has a P/E ratio of 17.96, indicating moderate valuations, and a P/B ratio of 2.86. Its dividend yield stands at 0.97%, helping investors gauge potential returns and value. The index also shows high correlation (0.99) with the Nifty 50 and a beta of 0.90, suggesting similar but slightly lower volatility than the broader market.

Market Snapshot (as of 17 Nov 2025, 11:48 IST)

The Nifty Financial Services Index is trading at ₹27,571.35, up 79.50 points (0.29%) from the previous close of ₹27,491.85. The intraday high touched ₹27,632.20, while the low was ₹27,496.60. Trading activity remains strong, with a volume of 351.71 lakh shares and a traded value of ₹3,807.02 crore. The free-float market cap stands at ₹47.80 lakh crore.

The index’s 52-week range shows a low of ₹22,320.85 and a high of ₹27,774.70, indicating strong recovery and consistent growth.

Index Returns

The Nifty Financial Services Index has shown steady performance across time periods. It gained 0.98% in the past week, 0.12% in a month, and 4.70% over 3 months. In the longer term, the index has returned 16.73% YTD, 18.84% in one year, 44.53% over 3 years, and an impressive 95.41% in 5 years, nearly doubling investor wealth.

Read more: Infosys Buyback: How Much Tax Will You Pay on The Buyback Amount?

Top Gainers and Losers

Shriram Finance is leading the gainers’ list, trading at ₹820.35 (+1.37%) with strong volume. Axis Bank follows at ₹1,255.00 (+1.08%), while Kotak Mahindra Bank has moved to ₹2,101.10 (+1.03%). ICICI Lombard is trading at ₹2,025.40 (+1.01%), and REC Ltd. is up at ₹361.30 (+0.91%).

On the downside, BSE Ltd. has declined to ₹2,801.00 (-0.94%), followed by Cholamandalam Finance at ₹1,700.00 (-0.85%). HDFC Life slipped to ₹769.00 (-0.61%), Jio Financial Services to ₹313.60 (-0.41%), and ICICI Prudential Life to ₹627.35 (-0.33%).

Conclusion

The Nifty Financial Services Index offers a complete picture of India’s financial sector, covering leading banks, insurers, NBFCs and housing finance companies. With strong long-term returns and a solid line-up of heavyweights like HDFC Bank and ICICI Bank, the index remains a key benchmark for investors and fund managers. Its steady growth and wide coverage make it a reliable indicator of the financial sector’s overall health and market direction.

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.