Bank Nifty: weightage of banks, bank nifty share
See Which banks comprise bank nifty?
Bank Nifty: To invest in banks may confuse an investor as so many banks are listed on the exchanges NSE and BSE. On a day stock of a particular bank performs well and another day another bank share performs good. But most of the investors are not aware how to get the benefit of all the banking sector stocks. Now the banknifty is the option which an investor can purchase and get the benefit of the rally in banking shares.
We will discuss in this article about, what is banknifty? Which banks comprise the bank index? How to trade in bank nifty?
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What is Bank Nifty?
Bank Nifty is a stock market index specifically designed to track the banking sector. Bank index represents the 12 most liquid and large capitalized stocks from the banking sector which trade on the National Stock Exchange (NSE). It provides investors and market intermediaries a benchmark that captures the capital market performance of the Indian banking sector.
Read about Banks in India: Government Banks | Private Banks | Digital Banks | Foreign Banks| List of all banks.
Which banks comprise bank nifty?
There are a total 12 most liquid banks in bank nifty. You can see name, NSE symbol, Weightage of the banking stocks listed on banknifty –
| Bank Name | NSE Symbol | Weightage |
| HDFC Bank Ltd. | HDFCBANK | 26.21% |
| ICICI Bank Ltd. | ICICIBANK | 23.72% |
| State Bank of India | SBIN | 11.86% |
| Axis Bank Ltd. | AXISBANK | 11.77% |
| Kotak Mahindra Bank Ltd. | KOTAKBANK | 11.08% |
| IndusInd Bank Ltd. | INDUSINDBK | 5.89% |
| AU Small Finance Bank Ltd. | AUBANK | 2.27% |
| Bank of Baroda | BANKBARODA | 1.88% |
| Federal Bank Ltd. | FEDERALBNK | 1.85% |
| Bandhan Bank Ltd. | BANDHANBNK | 1.66% |
| IDFC First Bank Ltd. | IDFCFIRSTB | 1.01% |
| Punjab National Bank | PNB | 0.81% |
Historical chart of index
Below you can see the historical chart of banknifty. This can give you an idea to invest in this index and how it moves with volume. The chart clearly indicates that the return on the investment is very good in long term.
How to trade in bank nifty?
You can invest in the BankNifty Index through the various listed ETF like BANKBEES, ICICI Prudential Nifty Bank ETF, etc. Currently, BANKBEES are the most popular option. There are index funds for BankNifty. Also you can buy future contracts and options of Banknifty. Futures contracts on Nifty Bank Derivatives were launched on June 13, 2005. Its derivatives contracts derive its value from the underlying index. Futures and Option contracts are also available on all the underlying stocks constituting Bank index.
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