Bank Nifty is one of the most popular indices of the National Stock Exchange (NSE). As most people know, it constitutes 12 large Indian banking stocks in India and is highly liquid. It serves as a reference for investors interested in the country’s banking sector.
The Bank Nifty index debuted on the stock exchange in 2000 and has been serving as a benchmark for investors and traders, since then, for keeping track of the capital market performance of the major banks in the country.
Among the List of Nifty Bank Stocks, HDFC Bank accounts for the maximum weightage of 27.04%, followed by ICICI Bank at 23.03 %, and Kotak Mahindra Bank at 11.72%. The other nine constituents of the index are State Bank of India, Axis Bank, IndusInd Bank, AU Small Finance Bank, Bandhan Bank, Bank of Baroda, Federal Bank, IDFC Bank, and Punjab National Bank.
Top 3 Constituents of Bank Nifty
Below, we have discussed the top three constituents of the popular bank Nifty index in detail:
HDFC Bank Ltd.
HDFC Bank is one of the leading private banks in India which offers both merchants as well as investment banking services. The bank has a market cap of INR 4,00,311.36 Crore. In the last 12 months, HDFC bank has registered revenue of INR 1,35,925.76 Crore and earnings of INR 22,594.69 Crore. Over the last five years, it has provided its investors with a decent return of 7.86%. Currently, the HDFC Bank share price is traded at INR 1430 (Aug 2, 2022).
ICICI Bank Ltd.
Founded in 1994, the ICICI Bank is the second major constituent of the Bank Nifty index. The bank offers a multitude of services in the field of both retail and wholesale banking. It is also involved in offering treasury services. It currently features a market cap of INR 4,92,267.43 Crore and posted revenues of over INR 95,000 Crore in the last 12 months. It also offered a return of a staggering 20.54% in the last 5 years to its investors.
Kotak Mahindra Bank
The third-largest constituent of the Nifty Bank index is Kotak Mahindra Bank, which primarily offers three types of services, retail banking, corporate banking, and treasury operations. The market cap for the bank stands at INR 3,73,376.25 Crore. And in the past 12 months, the bank has garnered revenues of over INR 33,000 Crore. If you had invested in this blue-chip five years ago, you would have enjoyed a return of 14.90%.
As an industry criterion for the banking business, the Bank Nifty index can only serve as an indicator for the segment and thus, no one bank stock has a weightage of more than 33%. The selection of the 12 companies to be included in the list of Nifty Bank stocks is done on their free-float market capitalization. And if you prefer or track the banking sector for online stock investing, you must keep track of Bank Nifty.