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The Nifty Financial Services Index is designed to reflect the behavior and performance of the Indian financial market which includes banks, financial institutions, housing finance, insurance companies, and other financial services companies.
The Nifty Finance Index comprises of 20 stocks that are listed on the National Stock Exchange (NSE). (listed below)
Nifty Financial Services Index is computed using the free float market capitalization method, wherein the level of the index reflects the total free float market value of all the stocks in the index relative to a particular base market capitalization value.
Nifty Financial Services Index can be used for a variety of purposes such as benchmarking fund portfolios, and launching of index funds, ETFs, and structured products.
Also Read: Intraday Trading Strategies and Tips
FinNifty Stocks Weightage (as of September 2024)
| Stocks Name | Weightage (%) | Market Cap (Cr) |
|---|---|---|
| HDFC Bank | 32.52 | 13,31,361 |
| ICICI Bank | 22.49 | 8,82,040 |
| Axis Bank | 8.16 | 3,52,473 |
| SBI | 7.79 | 6,96,879 |
| Kotak Mahindra Bank | 6.28 | 3,45,334 |
| Bajaj Finance | 4.76 | 4,00,147 |
| Bajaj Finserv | 2.36 | 2,50,460 |
| Shriram Finance | 2.17 | 1,05,337 |
| HDFC Life Insurance | 1.90 | 1,45,221 |
| SBI Life Insurance | 1.79 | 1,48,059 |
| 90.22% | 4,657,311 |
Fundamentals of FinNifty Index
- P/E Ratio – 16.70
- P/B – 2.89
- Dividend Yield – 0.90%
FinNifty Index Returns
- YTD – 12.23%
- 1 Year – 25.63%
- 5 Years – 12.87% CAGR
- All time – 17.72% CAGR
List of FinNifty Companies
- HDFC Bank
- ICICI Bank
- SBI
- Baja Finance
- Axis Bank
- Kotak Mahindra Bank
- Bajaj Finserv
- Power Finance Corporation
- SBI Life Insurance Company
- REC Ltd.
- HDFC Life Insurance Company
- Cholamandalam Finance
- Shriram Finance
- ICICI Prudential Life Insurance
- HDFC Asset Management Company
- ICICI Lombard General Insurance
- Muthoot Finance
- SBI Cards
- LIC Housing Finance
- IDFC
Methodology of Selecting Stocks in FinNifty
- Nifty 500 constituents representing Financial Services such as banks, financial institutions, housing finance, and other financial services, etc. are considered eligible.
- Within the eligible universe, weights of each subsector based on average free-float market capitalization is calculated.
- The selection of 20 companies from each sub-sector is made in such a manner that the weightage of selected constituents closely matches the weightage of the sub-sector as explained earlier.
- A preference within each sub-sector is given to companies that are available for trading in NSE’s Futures & Options segment.
- Companies will be included if the average free-float market capitalization is 1.5 times the average free-float market capitalization of the smallest index constituent.
- The weightage of each stock in the index is calculated based on its free-float market capitalization such that no single stock shall be more than 33% and the weightage of the top 3 stocks cumulatively shall not be more than 62% at the time of rebalancing
Other Indices Stocks Weightage,
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