Nifty Bank

Indices Details

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Overview

Futures and Options

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Nifty Bank at 06 Jan 2026 11:58 AM

60234.65 +190.45(+0.32%)

Today's Low 59844.80

Today's High 60305.00

Today's Open 59957.80

Prev. Close 60044.20

52 Week High 60437.35

52 Week Low 47702.90

Price Performance

1 Week 2.21%

1 Month 0.77%

6 Month 5.77%

1 Year 20.66%

3 Year 41.37%

5 Year 89.88%

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Other Indices

FAQs on Nifty Bank

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Key Stocks in the Bank Nifty Index

The Bank Nifty index consists of top banking stocks that represent the strength of the Indian banking sector. These Bank Nifty share prices are pivotal in determining the overall movement of the index. Explore the major players, including private and public sector banks, whose performance drives Bank Nifty. Understanding these underlying assets is crucial to make informed decisions in Bank Nifty trading and Bank Nifty options.

Bank Name

Weightage %

Market Cap (INR Cr)

YTD Performance (%)

Sector Focus

HDFC Bank

26.5%

850,000

+15.4

Private Bank

ICICI Bank

20.8%

670,000

+12.7

Private Bank

State Bank of India

12.7%

430,000

+9.8

Public Sector Bank

Kotak Mahindra Bank

9.0%

290,000

+18.3

Private Bank

Axis Bank

8.5%

270,000

+11.2

Private Bank

How to Trade or Invest in Bank Nifty?

Different Access Methods

There are multiple ways to invest in Bank Nifty, each suited to different strategies:

- Bank Nifty Stocks: Buy shares of the constituent banks directly through your Demat account.

- ETFs (Exchange-Traded Funds): Invest in funds that track the index for diversified exposure.

- Futures & Options: Use derivative contracts to hedge, leverage, or speculate on Bank Nifty movements.

- Index Funds/SIPs: Systematic plans (SIP) to passively track Bank Nifty for long-term wealth building.

Step-by-Step Investment Journey

1. Open a Demat and Trading accountwith Motilal Oswal for a quick, easy onboarding process.

2. Select your preferred investment method based on your risk tolerance and goals: stocks, ETFs, or derivatives.

3. Use analysis techniques (fundamental or technical) to decide on entry and exit points.

4. Actively track your portfolio and rebalance it according to market conditions and your investment horizon.

Why Choose Motilal Oswal for Bank Nifty Trading & Investment?

- Regulated & Trusted: Fully SEBI-registered with a reputation for compliance and integrity.

- Elite Research Team: Access exclusive insights and accurate market predictions from our award-winning analysts.

- Decades of Expertise: Over 30 years in Indian financial markets, including equities and derivatives.

- Investor Education Focus: Access webinars, tutorials, and tools designed to educate investors.

- Robust Technology: User-friendly platforms designed for both beginners and experienced traders.

- Innovative Tools: Access risk management tools, brokerage calculators, and margin planners specifically for Bank Nifty.

How is the Nifty Bank Index Value Calculated?

The Nifty Bank index value is determined by calculating the weighted average of its 12 constituent stocks based on free-float market capitalisation. Free-float refers to the shares not held by promoters, which are available for public trading.

The formula to calculate the index value is:

Index Value = (Current Index Free Float Market Capitalisation / Base Free Float Market Capitalisation of Index) * Base Index Value

Where:

Index Free Float Market Capitalisation = Current shares outstanding * IWF * Capping factor * Price

- IWF (Investible Weight Factor): The portion of the shares available for public trading. - Capping factor: 1 for uncapped indices.

The Nifty Bank index is reviewed semi-annually based on data from January 31st and July 31st. Any changes, including stock replacements, are implemented on the last trading day of March and September.

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What is Nifty Bank?

Nifty Bank is a sectoral index of the National Stock Exchange of India (NSE) that comprises the most liquid and actively traded banking stocks listed on the exchange. It serves as a benchmark for the performance of the banking sector within the Indian stock market.

Which stocks are included in Nifty Bank?

Nifty Bank comprises 12 major public and private sector banks, providing investors and market participants with a comprehensive view of the banking industry's health and trends. As of January 2024, in top stocks the Nifty Bank index include:

Company Name

AU Small Finance Bank Ltd.

Axis Bank Ltd.

Bandhan Bank Ltd.

Bank of Baroda

Federal Bank Ltd.

HDFC Bank Ltd.

ICICI Bank Ltd.

IDFC First Bank Ltd.

IndusInd Bank Ltd.

Kotak Mahindra Bank Ltd.

Punjab National Bank

State Bank of India

How is Nifty Bank calulated?

The calculation of Bank Nifty involves the establishment of a base date and value, which serve as foundational elements for the index. The base date, set as January 1st, 2000, signifies the initiation of tracking, while the base value, determined by NSE at Rs 1000, represents the index's worth on that commencement date. Notably, each bank in the index does not carry the same weight. Larger entities, such as HDFC Bank, hold a more substantial influence, while smaller entities, like IDFC Bank, have a comparatively lighter impact. This weightage is determined through the free-float market capitalisation method, wherein the size of each bank is a key factor in establishing its significance within the Bank Nifty framework.

What is the weightage of each stock in Nifty Bank?

The weightage of each stock in the Nifty Bank is determined based on its market capitalisation relative to the total market capitalisation of all the stocks in the index. The table below depicts the weightage of the top 10 stocks included in the Nifty Bank index (as of January 2024):

Stock

Weightage

HDFC Bank

29.39%

ICICI Bank

22.57%

Kotak Mahindra Bank

9.92%

Axis Bank

9.88%

State Bank of India

9.87%

IndusInd Bank

6.43%

Bank of Baroda

2.62%

AU Small Finance Bank

2.30%

Federal Bank

2.13%

IDFC First Bank

2.06%

Is F&O trading possible in Nifty Bank?

Yes - you can trade in both - futures and options - for Bank Nifty. As of January 2024, the lot size for a Bank Nifty contract is 15 units.

How are stocks selected for Nifty Bank?

The stocks for the Nifty Bank index are selected based on the free float market capitalisation methodology. The index is reviewed twice a year, and the stocks are added or removed based on parameters such as market capitalisation, liquidity, and sector representation.

How is the closing price of Nifty Bank calculated?

The closing price of Nifty Bank, like any other financial index, is determined through a weighted average calculation of the closing prices of its constituent stocks between 3 PM to 3:30 PM. The calculation involves summing up the closing prices of all the constituent stocks and applying the respective weightage based on market capitalisation. The resulting figure is then divided by the index's divisor to obtain the final closing price.

How can I trade in Nifty Bank?

The Nifty Bank index reflects the performance of 12 major banking companies listed on the National Stock Exchange (NSE). As a result, directly buying or selling the Nifty Bank units is not possible. However, you can trade in derivatives, such as Futures and Options, with the Nifty Bank as the underlying index. You can also invest in mutual fund schemes that are designed to specifically replicate the Bank Nifty index and its performance.

Is Bank Nifty suitable for long-term investment or only for trading?

Both. It offers long-term growth potential for investors and short-term opportunities for traders, depending on your risk profile.

How does RBI policy affect Bank Nifty movements?

RBI’s monetary policies influence lending rates, bank earnings, and, ultimately, Bank Nifty performance. Tightening may slow growth, while easing can drive positive sentiment.

Where can I find Bank Nifty option chain data and how to use it?

Motilal Oswal provides updated option chain data, which helps traders gauge market sentiment and strategize around support and resistance zones.

What are the risks involved in trading Bank Nifty and how can I manage them?

Risks include market volatility, sector-specific shocks, and leverage risks. Mitigate them using tools like stop-loss orders, position diversification, and risk management tools from Motilal Oswal.

What calculation methodology does Bank Nifty use?

Bank Nifty is calculated using the free-float market capitalization method, which considers only publicly tradable shares. Each constituent bank’s weightage is proportional to its free-float market cap, ensuring the index reflects real market activity.

What role does Bank Nifty play for different types of market participants (investors, traders, analysts)?

- Investors: Use it for sector-focused portfolio diversification.

- Traders: Benefit from its liquidity and volatility for derivatives and intraday strategies.

- Analysts: Treat it as a barometer for banking sector performance and economic policy impacts.

What technical indicators are useful for analyzing Bank Nifty trends?

Key tools include moving averages (50-day, 200-day), RSI (Relative Strength Index), MACD, and chart patterns such as breakouts or head-and-shoulders formations. These help identify trends, momentum, and potential reversals.

Which fundamental factors affect Bank Nifty’s performance?

Quarterly earnings, asset quality (NPAs), credit growth, interest rate changes, and regulatory policies directly influence constituent banks and, in turn, the index’s overall movement.

What macroeconomic events typically cause significant Bank Nifty fluctuations?

RBI monetary policy announcements, inflation data, Union Budget provisions, global interest rate changes, and banking sector reforms can trigger sharp moves in Bank Nifty.

How can I identify support and resistance levels for Bank Nifty trading?

Traders often analyze historical price data, use pivot points, and apply technical indicators like Fibonacci retracements to determine key price zones where the index may reverse or consolidate.