first we should know about what is Bank nifty index ?
here are the list of banknifty shares list updated 2021
What is Bank Nifty ? bank nifty constituents weightage 2021
Nifty Bank index is the second big index in indian market after main Nifty index. It is weighted index of Banking stocks in India that have large capital and it is very liquid stocks.
Right Now there are 12 banking stocks in the list of banknifty index and it gives heavy weightage to banknifty .Bank Nifty index contains both Public Sector banks and Private Sector banks.
Bank Nifty index is also known by its second name and people also search this term “Nifty Bank”. India Index Service and Product Limited (IISL) launched the index launched bank nifty index in the year of 2000 .
- Base date of index is 1st January, 2000.
- Base value of index is 1000 points.
- The aim of this index was to help the investors for making better decision according to its benchmark of Indian capital market economy with its realtime performance .
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How to Trade in Bank Nifty Index? / method of calculating the market capitalization
Nifty Bank is calculated /computed by free-float capitalization method. it is a method calculating the market capitalization of a stock market index’s underlying companies. and it is calculated by stocks price that is underlying the index.
You can trade Nifty index in the different segments like options and futures . It is very high liquid index the reason behind this it contains high weightage in Nifty index .
- Now current lot size of Nifty Bank is 20 units.
- Now it become the higher traded index that is trading weekly and it has higher trading volume than Nifty50 index . so its the top 1 index among of all.
How NSE choose Stocks in Bank Nifty Index
NSE follow some criteria to choose banking stocks in Bank Nifty index
- Ranking of Market Capitalization
Banks should be rank under and less than 500 in the universe is the first criteria of choosing stocks in index.
- Net Worth
selected bank Net worth should be in positive.
- History of listing
The duration of listing of any company should be atleast 6 months and it should listed on NSE. and if the bank come with an IPO it should be 3 months listing history on NSE.
- Turnover of rank should be rank under and less than 500 in the universe .
- Trading Frequency
In the duration of six months , frequency of trading of the selected bank should be minimum 90% and if it is above 90% it is a good plus point for choosing.
- Futures & Options Segment activated
if the banking stocks traded in F&O (Futures & Options Segment) only with this criteria it will be added in banknifty index.
- Weightage of banking stocks
All banking stocks contains their weights in the banknifty index and no one bank should be more than 34% share of stocks.
Top 3 banks combined should not more than 63% while re-balancing or re arranging.
- Weightage of banking stocks
- Re-Balancing date
it is re-balancing of half yearly basis by NSE in banknifty index. 1st January and 1st July these 2 dates are alloted by NSE.
For re-balancing it takes 6 months of average data.
- Governance of Nifty Bank index
it is governed by three-tier teams.
- Board of Directors of NSE Indices Limited.
- The Index Advisory Committee (Equity).
- The Index Maintenance Sub-committee.
Below is the total number of companies that is included in Bank Nifty Weightage Index (Nifty Bank Index Stocks) and it is released by National stock exchange dated , April 30, 2021.
|HDFC Bank Ltd||34.99%|
|ICICI Bank Ltd||23.36%|
|Kotak Mahindra Bank Ltd||13.92%|
|Axis Bank Ltd||11.61%|
|State Bank of India||8.19%|
|Indusind Bank Ltd||2.89%|
|Bandhan Bank Ltd||1.35%|
|AU Small Finance Bank Ltd||0.97%|
|Federal Bank Ltd||0.88%|
|IDFC First Bank Ltd||0.85%|
|Punjab National Bank||0.52%|
|RBL Bank Ltd||0.46%|
HDFC Bank contains highest weightage with 34.99% weightage in Nifty Bank Index Stocks Companies List, whereas ICICI Bank remains at 2nd in the list with 23.36% weightage & koatak mahindra bank is placed at 3rd position with 13.92% in Bank Nifty Companies Index List.
HDFC Bank, ICICI Bank & Kotak Mahindra Bank are top bank nifty heavy weights stocks Banknifty index.
RBL Bank having low weightage in Bank Nifty Weightage Index with 0.46%.
Yes Bank has been out from the Bank Nifty Index on March 19, 2020. Bandhan Bank has also in Bank Nifty Shares List.
- Bank Nifty Lot Size
Earlier bank nifty was 40 units per lot but As per the circular Ref. No. 91/2018 date September 28, 2018 it has been revised 20 from 40 units .
Now it trades with 20 units .