Home » BankNifty Composition and Weightage 29 October 2021

BankNifty Composition and Weightage 29 October 2021

BankNifty Composition and Weightage 29 October 2021

The NIFTY Bank Index includes the most liquid and significant banking firms in India. It serves as a benchmark for investors and market intermediaries, capturing the capital market performance of Indian banks. The Index includes a maximum of 12 companies that are publicly traded on the National Stock Exchange of India (NSE).
The free float market capitalization approach is used to calculate the NIFTY Bank Index.
The NIFTY Bank Index can be used to benchmark fund portfolios, establish index funds, ETFs, and structured products, among other things.
NIFTY Bank Total Returns Index is a type of index.

Company’s Name     Weight(%)

HDFC Bank Ltd.                                        26.61
ICICI Bank Ltd.                                        22.91
State Bank of India                                 13.82
Kotak Mahindra Bank Ltd.                  12.28
Axis Bank Ltd.                                          11.44
IndusInd Bank Ltd.                                 5.20
AU Small Finance Bank Ltd.                2.01
Bandhan Bank Ltd.                                  1.49
Federal Bank Ltd.                                    1.47
IDFC First Bank Ltd.                              1.16

 

 

Details of BankNifty

Eligibility Criteria for Constituent Stock Selection: i. Companies must be listed on the NIFTY 500 at the time of evaluation. If the number of eligible stocks representing a particular sector within the NIFTY 500 falls below 10, a deficit number of stocks will be chosen from the universe of stocks ranked within the top 800 based on both average daily turnover and average daily full market capitalization based on data from the previous six months period used for index rebalancing.
ii. Businesses should be included in the banking sector.
iii. In the previous six months, the company’s trading frequency should have been at least 90%.

iv. The company should have a six-month listing history. a competition

iv. The company should have a six-month listing history. A company that issues an initial public offering (IPO) will be eligible for inclusion in the index. If it meets the standard eligibility criteria for the index for a three-month period rather than a six-month period, it will be included in the index.

v. Only companies that are permitted to trade in the F&O segment are eligible to be index constituents.

vi. The final selection of 12 firms will be made on the basis of their free-float market capitalization.

vii. Each stock’s weight in the index is determined by its free-float market capitalization, ensuring that no single stock is overweighted.

 

Note: More than 33 percent, and the combined weightage of the top three stocks must not exceed 62 percent.

 

Index Rebalancing:

The index is rebalanced every two years. The deadlines for semi-annual reviews are January 31 and July 31 of each year.

The average data for the six months preceding the cut-off date is used to calculate the indices. Market is provided four weeks’ notice from the date of the modification.

Governance of the Index:

All NSE indices are managed by a professional crew. The NSE Board of Directors is part of a three-tier governance system.

Indices Limited, the Index Advisory Committee (Equity), and the Index Maintenance Sub-Committee are all members of the Index Advisory Committee (Equity).

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