The Nifty Bank Index is made up of India’s most liquid and largest banking stocks, offering investors and market participants a reliable benchmark that tracks the performance of the Indian banking sector. The index is calculated in real time using the free float market capitalisation method and includes 12 key banking companies listed on the National Stock Exchange (NSE). It was launched on September 15, 2003, with a base date of January 1, 2000, and a base value of 1000.
Investors often use the Nifty Bank Index to benchmark portfolios, and it also serves as the base for index funds, ETFs, and other structured products.
Despite the overall decline, a few stocks managed to stay in the green:
Some of the major banking stocks dragged the index lower:
The Nifty Bank Index includes key constituents such as HDFC Bank with the highest weightage at 27.82%, followed by ICICI Bank at 25.18%. Axis Bank and SBI each hold around 8% weight, while Kotak Mahindra Bank accounts for 7.54%.
Other banks in the index include IndusInd Bank, Federal Bank, Bank of Baroda, IDFC First Bank, and AU Small Finance Bank. From a valuation perspective, the index’s P/E ratio stands at 14.63, and it offers a dividend yield of 2.33%. Its beta with the Nifty 50 is 1.02, indicating slightly higher volatility. The standard deviation also suggests a moderate level of fluctuation in performance.
While the banking sector is generally considered a backbone of the economy, today’s dip reflects broader market concerns, possibly driven by global cues or sector-specific challenges. However, strong fundamentals, decent dividend yields, and stable constituents suggest that the Nifty Bank Index continues to remain a reliable benchmark for long-term investors.
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.
Published on: Jun 23, 2025, 12:45 PM 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.
Know MoreWe're Live on WhatsApp! Join our channel for market insights & updates