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Mar 15, 2024

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Bank Nifty Companies

Other Indices

INDEX NAME MARKET VALUE 52W HIGH 52W LOW
Nifty Next 50 58057.25
(-0.7911%)
60920.25 36895.65
Nifty Bank 46562.45
(-0.4862%)
48636.45 38941.90
Nifty 50 22017.35
(-0.5838%)
22526.60 16828.35
Nifty 100 22490.40
(-0.5892%)
23073.55 16700.25
BSE Small-Cap 41539.08
(-1.0554%)
46821.39 26120.32
BSE Sensex 72015.55
(-1.0074%)
74245.17 57084.91
BSE Mid-Cap 37726.83
(-1.4045%)
40282.49 23356.61
BSE 100 22624.25
(-1.1630%)
23449.26 17100.50

Bank Nifty Index Performance

Top Performing

Company Name LTP MCAP Change Percentage
IndusInd Bank Ltd 1,485.90 115,256.20 0.62
Federal Bank Ltd 150.90 35,892.96 3.32
Bandhan Bank Ltd 182.95 29,230.11 1.84
IDFC First Bank Ltd 78.80 55,078.09 0.45

Under Performing

Company Name LTP MCAP Change Percentage
HDFC Bank Ltd 1,446.20 1,098,593.93 -0.64
ICICI Bank Ltd 1,079.15 759,043.49 -0.41
State Bank of India 731.95 652,121.39 -1.23
Axis Bank Ltd 1,051.00 327,505.54 -0.69
Kotak Mahindra Bank Ltd 1,740.20 345,347.05 -0.13
Bank of Baroda 254.15 131,611.17 -1.95
AU Small Finance Bank Ltd 578.70 38,161.17 -0.90
Punjab National Bank 117.65 132,187.24 -2.49

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What is Bank Nifty?

The Bank Nifty index is also referred to as "Nifty Bank." IISL (India Index Service and Product Limited) launched the index in the year 2000. The index's base date is January 1, 2000, and its base value is 1000 points. The NSE created the nifty bank index to assist investors and other intermediaries in making better decisions by displaying the benchmark of the Indian capital market.

The Nifty Bank index is made up of 12 large-cap and liquid Indian banking stock companies. It displays the underlying banks' performance. The Bank Nifty index includes private and public sector banks and is widely traded in the derivative markets. There is a favourable relationship between the Nifty and the nifty bank index. It has a significant weightage in the Nifty index. Nifty Bank's current lot size for trading purposes is 25 units. Nifty bank options were the first to be traded weekly and offer good trading opportunities.

The Nifty bank list of companies (constituents) is reshuffled every six months on January 01 and July 01. When rebalancing, the average data of six months is considered for revaluation. The top stocks of the index as per the data in February 2024 include HDFC Bank Ltd. (37.41%), ICICI Bank Ltd. (24.48%), Axis Bank Ltd. (10.25%), Kotak Mahindra Bank Ltd. (9.08%), and State Bank of India (8.31%). The other companies in Nifty bank include-

IndusInd Bank, AU Small Finance Bank Ltd., Bandhan Bank, Federal Bank, IDFC First Bank Ltd., Punjab National Bank (PNB), and Bank of Baroda.

Nifty Bank FAQs

Let us start with the basics - What is an index? An index represents the performance of a group of assets, such as stocks or bonds, providing a benchmark for assessing the overall movement and trends in a particular market or sector. NIfty50 and Sensex are the top two indices in the Indian stock market. 

On the same line, we have the bank Nifty Index. It is a benchmark index that represents the performance of the banking sector on the National Stock Exchange of India (NSE). The Bank Nifty index includes the most liquid and large capitalized banking stocks listed on the NSE.

The Nifty Bank Index has been in existence for over two decades now. It was launched in 2000 by India Index Service and Product Limited or IISL. The launch date was 1 January, and the base value was 1000 points. Twenty-four years later, on 1 January 2024, the index was over 48,000 points - 48x growth.

Nifty Bank comprises the banking stocks listed on the NSE. These stocks may include both public-sector and private-sector banks. At present, the index has 12 companies, including banking giants like HDFC Bank and ICICI Bank. It also has smaller banks like AU Small Finance Bank and Federal Bank. You can check all the companies that are part of the Nifty Bank index in the below image.

Like other indices, Nifty Bank works as a benchmark tool for investors, traders, and fund managers to gauge the overall health and trends in the banking industry. As the underlying stocks of the nifty bank index move up, the index moves north and visa-versa. Also, positive news, such as strong financial results, can lead to a rise in the index, while negative news may result in declines. Changes in the Nifty Bank can reflect market sentiment regarding the banking industry.

To buy the Nifty Bank index, you may need a Demat and a trading account (ETF buying). You will find exchange-traded funds or ETFs that are listed on the stock exchanges. You can find them on ICICIDirect and make an investment.

Alternatively, you can index in the Nifty Bank index via mutual funds. You can find the index on the ICICIDirect.

The movement of the Bank Nifty, like any other stock market index, is influenced by the individual stock prices of its constituent companies. The Bank Nifty is a market-capitalization-weighted index, meaning that the stocks with higher market capitalization have a greater impact on the index's movements.

The duration for which an investor can hold Bank Nifty or any other investment depends on their financial goals, risk tolerance, and investment strategy. You can hold it for days, weeks, months, or years. If you have a specific financial goal with a known time horizon, your investment duration in Bank Nifty should align with that goal.

Yes, it is possible to buy and sell Bank Nifty or any other index on the National Stock Exchange within a short time frame, often referred to as intraday trading or day trading. Intraday trading involves opening and closing positions within the same trading day.

The Bank Nifty index is calculated using a free-float market capitalization-weighted methodology. This means that the index value is based on the market capitalization of its constituent stocks, adjusted for the available free float (available shares for trading). The calculation involves multiplying the free-float market capitalization of each bank by its weightage in the index, derived from its proportion in the total market capitalization of all Bank Nifty stocks. 

The sum of these individual values is then divided by the index's base value. The resulting figure represents the Bank Nifty index value. As stock prices and market capitalizations change, the index is recalculated periodically to reflect the latest market conditions and the relative importance of individual banks in the index.

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Disclaimer

ICICI Securities Ltd.( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. - ICICI Centre, H. T. Parekh Marg, Churchgate, Mumbai - 400020, India, Tel No : 022 - 2288 2460, 022 - 2288 2470.  I-Sec is a SEBI registered with SEBI as a Research Analyst vide registration no. INH000000990. The contents herein above shall not be considered as an invitation or persuasion to trade or invest.  Investments in securities market are subject to market risks, read all the related documents carefully before investing. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. The contents are solely for informational and educational purpose.