Bank Nifty weightage – Bank Nifty was introduced into NSE in 2003 as a bank sector index that only comprises banking stocks. The Bank Nifty consists of large Indian banking stocks as well as most liquid banking stocks. The Bank Nifty weightage is calculated using a free-float market capitalization-weighted methodology. The weightage of a stock is calculated by its market capitalization number of shares available for trading.

The Bank nifty is the benchmark index where no share exceeds 35% of the total market capitalization. However the top three shares in the bank nifty exceeds 71%.

There are a lot of factors that influence the performance of the Bank Nifty. Some of the most significant factors that affect the bank nifty are –

1. Change in the Interest rates – A change in the interest rates will have a huge impact on Bank Nifty and the Banking stocks. The rise in the Interest rates will automatically make the bank’s performance deteriorate.
2. NPA ratios of Banks – NPA defines as Non-performing assets which means the loans that have stopped generating income for a bank due to default or non-payment by borrowers. If NPA increases, the bank performance decreases which directly impacts the Bank Nifty.
3. Regulatory changes – If the government takes any decision that rules against the banks’ profitability like increasing taxes or Repo rate.

Bank nifty weightage stocks list

Bank Nifty is only comprised of Baking sector stocks that too with a large market capitalization. The banking stocks’ performance reflects the movement of BankNifty and also banking sector plays a pivotal role in the Indian economy. The bank nifty comprises most liquid stocks and large market capitalization stocks. The Bank Nifty is a clear indication for the observation of banking stocks’ performance.

Bank Nifty contains liquid stocks as well as high market capitalization stocks.

let us look at the total Bank Nifty stocks list

1. HDFC Bank
2. ICICI Bank
3. State Bank of India
4. Kotak Mahindra Bank
5. Axis Bank
6. Induslnd Bank
7. Bank of Baroda
8. Punjab National Bank
9. AU small finance bank
10. IDFC First Bank
11. Bandhan Bank
12. Federal Bank

bank Nifty stocks list table

Banks	Weightage
HDFC Bank	28.92%
ICICI Bank	20.96%
State Bank of India	16.26%
Kotak Mahindra Bank	12.16%
Axis bank	8.91%
Induslnd Bank	3.05%
Bank of Baroda	2.95%
Punjab National Bank	1.76%
AU Small finance Bank	1.60%
IDFC First Bank	1.39%
Bandhan Bank	1.23%
The Federal bank	0.84%

Total stocks in Bank Nifty

There are a total of 12 Banking stocks that are included in Bank Nifty. Over the years a lot of changes have happened in Bank Nifty.

What are the top 5 weightage stocks in Banknifty?

There are a total of 20 banks in Bank Nifty which comprises private banks and government banks.

The top 5 weights are

HDFC bank – HDFC bank has a total weightage of 28.99% in the Bank Nifty and HDFC bank has a 2.5 lakh crore market cap

ICICI Bank – ICICI is a private sector bank in India and the total weightage in the Bank Nifty is 20.96% with a market cap of 6.6 lakh crore

State Bank of India – State Bank of India is a public sector bank and it is the largest public sector bank in India with a market cap of 5.5 lakh crore. The total weightage is 16.25%.

Kotak Mahindra Bank – Kotak Mahindra Bank is a private sector bank with a total weightage of 12.16% in the Bank Nifty. The market cap is 3.8 lakh crore.

Axis Bank – Axis Bank is a private sector bank in India and the bank has a weightage of 8.91% with a market cap of 2.8 lakh crore.

The interesting thing about Bank Nifty is Bank Nifty is included in Derivative trading similar to Nifty50.

What changes affect the Bank Nifty

There are a lot of factors that affect the performance of Bank Nifty. Let’s look at some of those

1. Regulatory changes
2. Interest rates
3. Internal disputes

Conclusion

In this article, we have seen the Bank Nifty weightage and what are the stocks that are included in the Bank Nifty. Bank Nifty is also the most traded derivate index in India after Nifty 50. Bank Nifty is comprised of 12 banking stocks which are both public and as well as Private. At present, the Bank Nifty is trading at 44,020.