Nifty Bank (NIFTY BANK) live share price today at NSE

The Nifty Bank Index is considered the largest Index and the most liquid Banking Index in India. The Nifty Bank Index is used as an analytical tool to track the performance of the banking sector, and it is used to capture the performance of the capital market of the Indian Banks. The Nifty Bank Index considers the options and futures as underlying assets, which have high trading volume. The constituents included in the Nifty Bank Index shall not be more than 12 stocks, including public sector banks, private sector banks, and other banks in the Nifty Bank Index
 

The Nifty Bank Index came into effect on 15th September 2003, with a base year of 2000 and a base value of 1000. The reconstitution criteria shall be based on a semi-annual basis to reflect the changing conditions of the financial markets in India and for the Indian Economy. The capping criteria for the stock shall not exceed 33%, which means the weightage of the single stock shall not be more than the capping criteria, and the weights of the top three stocks must not be more than 62%. 
 

The CAGR of the Nifty Bank Index is approximately 17.6%, between 1st January 2000 and 31st December 2021. After 22 years, the CAGR has increased by 11.5%, and has outperformed between 2011-2012 and 2020-2021. The Nifty Bank Index analyses the performance of the banking sector, and mostly 88% of the float-adjusted market capitalisation method, and from the banking sector separately. The total traded value of the Nifty Bank Index is not more than 14.84% for all the stocks on the National Stock Exchange for the last six months of 2023.    

• The yearly Price Return of the Nifty Bank Index is 16.78%, and over 5 years, it is 18.30%.
• The total Standard Deviation, Beta, and correlation of the Nifty Bank Index are 28.32%, 1.09%, and 0.84%, respectively.
• The P/B ratio in the fundamentals is 1.99%, the P/E ratio is 14.61%, and the Dividend Yield is 1.11%.
• The top sector weightage of the Nifty Bank Index is Financial Services, Automobile and Auto Components, and Fast Moving Consumer Goods. 
• The weightage of the top three sectors is 22.86%, 11.16%, and 9.39%.

• The companies must be a part of the Nifty 500. If the total number of stocks has fallen from 10, then the remaining number of stocks must be selected from the large number of stocks based on the average full float market capitalisation of the Nifty Bank Index.
• Companies must form a part of the banking sector.
• The continuous trading frequency shall be at least 90% for the last six months.
• The minimum listing history from the cut-off date shall be at least one month.
• Eligibility of the index shall depend on the allowance of the F&O segment which are trading on the Nifty Bank Index.
• Re-balancing criteria shall be based on a semi-annual basis.
• Reviewing criteria must be based on the average data for six months from the cut-off date.       

The Nifty Bank Index will be calculated based on free-float market capitalisation. It helps investors invest in the Nifty Bank Index with the most reliability. The Nifty Bank Index enables investors to understand the behaviour and performance of all banks in the private sector. So that investors have access to data and different sectors in which they can invest in the Nifty Bank Index.  

The Nifty Bank Index is calculated by multiplying the stock price by the free-float shares and then summing the values obtained by multiplying the above value. The value is then divided by the base Index Value, which enables the splitting of the dividends. The update in the real-time value shall be made during trading hours and will also assist in calculating the Nifty Bank Index Value.           

The Free-float market capitalisation refers to the freely traded shares on the platform of the National Stock Exchange. There will be an exclusion of shares held by the government, promoters, investors, and analysts. The Calculation of the Nifty Bank Index will help investors to analyse all kinds of banks, whether private or small. 

Nifty Bank Index Formula: Total Free-Float Market Capitalisation * Base Index Value / Base Market Capitalisation

Calculation for the free-float market capitalisation is done as Market Capitalisation* Free Float Factor.

• The Nifty Bank Index represents the banking sector and helps in tracking the performance of the most liquid and large-cap stocks related to the banking sector, which provides a deep view of the sector.
• The baking stocks are highly liquidable, as they provide ease for entry and exit levels of the investors, and also serve as a benchmark for ETFs and portfolio managers.
• The traders will be allowed to hedge and arbitrage with the help of futures and options actively traded on the Nifty Bank.

• The Nifty Bank Index only includes the stocks related to the banks; investors may not explore the large segments of the stocks similar to the Nifty 50.
• Changes in interest rates, inflation, credit growth, and overall economic growth could impact the banking sector and may slow down the performance of the banks.
• The coverage in the Nifty Bank Index is limited because it covers only 12 major banks and omits NBFCs, insurance companies, and small banks, which does not give the whole view of the Nifty Bank Index.  

The easiest method to invest in the Nifty Bank Index is to invest through Exchange-Traded Funds (ETFs) or mutual funds that track the index's performance. Start trading with the opening of a Demat Account and choose a broker who helps you select stocks wisely and is highly productive. Investors can monitor changes in market conditions and economic conditions before investing in the Nifty Bank Index. Investors may hire a broker for trading, which helps them make informed decisions about stocks if they are unsure about which ones to buy. The consultant also enables them to consult on the best stocks in the Nifty Bank Companies. 

The Nifty Bank Index is considered the largest Index and the most liquid Banking Index in India. The Nifty Bank Index is used as an analytical tool to track the performance of the banking sector, and it is used to capture the performance of the capital market of the Indian Banks. The Nifty Bank Index came into effect on 15th September 2003, with a base year of 2000 and a base value of 1000. The reconstitution criteria shall be based on a semi-annual basis to reflect the changing conditions of the financial markets in India and for the Indian Economy.

The CAGR of the Nifty Bank Index is approximately 17.6%, between 1st January 2000 and 31st December 2021. After 22 years, the CAGR has increased by 11.5%, and has outperformed between 2011-2012 and 2020-2021. The Nifty Bank Index is calculated by multiplying the stock price by the free-float shares and then summing the values obtained by multiplying the above value. The value is then divided by the base Index Value, which enables the splitting of the dividends. The update in the real-time value shall be made during trading hours and will also assist in calculating the Nifty Bank Index Value.