India’s Bank Nifty Index is a free-float market capitalization-weighted index that tracks the performance of the 12 largest and most liquid bank stocks listed on the National Stock Exchange of India (NSE). The weighting of each stock in the index is determined by its free-float market capitalization, which is the total market value of the stock multiplied by the percentage of publicly traded shares.
We can easily assess the ups and downs of Bank Nifty from the components of Bank Nifty, which helps us in trading Bank Nifty.
Understanding Weighting: A Perfect Step to Profit in Trading
Do you know? Technology plays a pivotal role, the human element remains irreplaceable. Experienced engineers bring an intuitive understanding to the weightage equation, honed through years of practical application. Their discerning eye and hands-on expertise fine-tune the calculations, ensuring that the components function in seamless synergy.
- Weightage, in the context of Bank Nifty components, refers to the proportional importance given to each element within a system.
- It is this fine-tuning that ensures optimal functionality and performance.
- Picture a symphony, where each stock plays a unique role, and the conductor carefully adjusts the volume and intensity of each section.
Bank Nifty Stocks & Weightage
| Stock Name | Weightage |
|---|---|
| HDFC Bank Ltd. | 29.01 |
| ICICI Bank Ltd. | 23.14 |
| Axis Bank Ltd. | 9.98 |
| State Bank of India | 9.83 |
| Kotak Mahindra Bank Ltd. | 9.61 |
| IndusInd Bank Ltd. | 6.25 |
| Bank of Baroda | 2.67 |
| Federal Bank Ltd. | 2.32 |
| AU Small Finance Bank Ltd. | 2.30 |
| IDFC First Bank Ltd. | 2.02 |
| PNB bank | 1.60 |
| Bandhan Bank | 1.25 |
