Stocks Weightage In Bank Nifty
Stocks Weightage in Bank Nifty consists of a list of 12 Banking stocks which are part of Bank Nifty. Bank Nifty is the second most popular index on National Stock Exchange of India after Nifty. CNX Bank Index is popularly known as Bank Index.
Stocks weightage in bank nifty is last updated in June 2015
List of stocks in Bank Nifty & Weightage
I have sorted the stocks in bank nifty index with the highest weightage stock in banknifty index at the top (HDFC Bank) and lowest weightage stock at the bottom (Bank Of India). It can be seen that out of total 12 stocks in the bank nifty index, Just 4 stocks have an weightage of around 75%. Just 3 private sector banks have an weightage of around 65% in bank nifty. That is the reason now a days bank nifty moves as per the movement of just these stocks. Public Sector banks almost have no impact in moving the index.
Stocks weightage in bank nifty is determined based on their free float market cap outstanding. Bank Nifty index stocks are selected from banking stocks which are traded on National Stock Exchange of India, which are highly liquid and large capitalized. These banks which number in 12 consists of both public sector banks and private sector banks. Bank Nifty Index provides investors a bench mark of banking stocks performance in Indian capital markets.
CNX Bank Index (Bank Nifty) value is calculated on free float market capitalization method. Base date of calculation of Bank Nifty is January 01, 2000 and the starting index value of bank nifty is 1000. Bank Nifty is now highly represented in total market movement. After 2008-09, weightage of bank stocks started to increase even in nifty replacing earlier dominant Information Technology Stocks.
Facts about market representation of Bank Nifty
- The CNX Bank Index represent about 15.89%of the free float market capitalization of the stocks listed on NSE and 89.06% of the free float market capitalization of the stocks forming part of the Banking sector universe as on June 28, 2013.
- The total traded value for the last six months ending June 2013 of all the Index constituents is approximately 15.55% of the traded value of all stocks on the NSE and 84.49% of the traded value of the stocks forming part of the Banking sector universe.
source : National Stock Exchange of India
To be included in the bank index, a stock should be a banking stock with a free float market capitalization & company turnover of top 500 stocks. It should also have a trading frequency of atleast 90%. Such Banking stock should also have positive net worth.
Bank Index is rebalanced with changes, if any twice a year. The dates of re balancing are 31 January and 31 July . A six week prior notice is given to market if any changes are effected during such semi-annual bank nifty re-balancing reviews.