Nifty Bank Falls to 56,697 on July 14; AU Small Finance Down 2.6%, Canara Bank Up Nearly 2%

On July 14, 2025, the Nifty Bank index closed at ₹56,697.70, down ₹57 points or 0.10% from the previous session. The index, which tracks India’s 12 most prominent and liquid banking stocks, moved within a narrow range during the day and showed limited volatility. The decline came despite some banks registering gains.

Canara Bank tops gainers, AU Small Finance leads losers

Among the constituents, Canara Bank was the top gainer, rising 1.96% to ₹114.11. Other gainers included Bank of Baroda (up 1.27% to ₹240.45), IDFC First Bank (up 1.22% to ₹76.15), Federal Bank (up 1.19% to ₹209.84), and IndusInd Bank (up 0.60% to ₹864.00).

On the losing side, AU Small Finance Bank was the biggest drag on the index, falling 2.61% to ₹799.55. Kotak Mahindra Bank, HDFC Bank, Axis Bank, and ICICI Bank also ended in the red, declining up to 0.48%.

Top weightage held by HDFC and ICICI Bank

The five most influential stocks in the index by weight are: HDFC Bank (28.17%), ICICI Bank (25.23%), State Bank of India (8.72%), Axis Bank (8.40%), and Kotak Mahindra Bank (8.36%). Together, these five account for nearly 80% of the index’s weight, making their performance crucial to the overall movement.

Performance returns show long-term strength

In terms of returns, the Nifty Bank Index has shown robust long-term performance. It has returned 10.28% in the last 1 year, 22.63% CAGR over 5 years, and 18.72% CAGR since inception. The dividend yield of the index is 2.36%, with a P/E ratio of 15.19 and a P/B ratio of 1.09, indicating stable valuations compared to the broader market.

Read More: Sensex Slips Over 400 Points; Broader Markets Show Resilience!

Conclusion

Despite the minor dip on July 14, the Nifty Bank Index continues to be a critical benchmark for gauging the performance of India’s banking sector. Strong long-term returns, high-weighted constituents, and sector-wide representation make it a preferred choice for benchmarking, ETFs, and sector-focused strategies. Investors should monitor key players like HDFC Bank and ICICI Bank, whose movements significantly impact the index's 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.

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