September 29, 2023
The Nifty Financial Services Index is designed to reflect the behaviour and performance of the Indian financial market which includes banks, financial institutions, housing finance, insurance companies and other financial services companies. The Nifty Finance Index comprises of 20 stocks that are listed on the National Stock Exchange (NSE).
Nifty Financial Services Index is computed using free float market capitalization method, wherein the level of the index reflects the total free float market value of all the stocks in the index relative to particular base market capitalization value.
Nifty Financial Services Index can be used for a variety of purposes such as benchmarking fund portfolios, launching of index funds, ETFs and structured products.
Index Variant: Nifty Financial Services Total Returns Index.
Portfolio Characteristics
| Methodology | Free Float Market Capitalization |
|---|---|
| No. of Constituents | 20 |
| Launch Date | September 07, 2011 |
| Base Date | January 01, 2004 |
| Base Value | 1000 |
| Calculation Frequency | Real-Time |
| Index Rebalancing | Semi-Annually |
| Index Returns in (%) | QTD | YTD | 1 Year | 5 Year | Since Inception |
|---|---|---|---|---|---|
| Price of Return | -1.23 | 4.47 | 13.16 | 13.37 | 16.32 |
| Total Return | -1.03 | 5.33 | 14.21 | 14.09 | 17.61 |
Sector Representation
| Statistics# | 1 Year | 5 Year | Since Inception |
|---|---|---|---|
| STD Deviation* | 12.49 | 25.06 | 28.05 |
| Beta (NIFTY 50) | 1.07 | 1.20 | 1.16 |
| Correlation (NIFTY 50) | 0.88 | 0.92 | 0.91 |
Fundamentals
| P/E | P/B | Dividend Yield |
|---|---|---|
| 18.46 | 3.09 | 0.83 |
Top Constituents by Weightage
| Company's Name | Weight(%) |
|---|---|
| HDFC Bank Ltd. | 32.60 |
| ICICI Bank Ltd. | 20.53 |
| Axis Bank Ltd. | 8.86 |
| Kotak Mahindra Bank Ltd. | 7.95 |
| State Bank of India | 7.15 |
| Bajaj Finance Ltd. | 6.49 |
| Bajaj Finserv Ltd | 2.60 |
| HDFC Life Insurance Company Ltd. | 2.13 |
| SBI Life Insurance Company Ltd. | 1.83 |
| Shriram Finance Ltd. | 1.66 |
## Based on Price Return Index.
# QTD,YTD and 1 year returns are absolute returns.Returns for greater than one year are CAGR returns.
* Average daily standard deviation annualised.
Disclaimer: All information contained herewith is provided for reference purpose only. NSE Indices Limited (formerly known as India Index Services & Products Limited-IISL) ensures accuracy and reliability of the above information to the best of its endeavors. However, NSE Indices Limited makes no warranty or representation as to the accuracy, completeness or reliability of any of the information contained herein and disclaim any and all liability whatsoever to any person for any damage or loss of any nature arising from or as a result of reliance on any of the information provided herein. The information contained in this document is not intended to provide any professional advice.
Index Methodology
Eligibility Criteria for Selection of Constituent Stocks:
- Nifty 500 constituents representing Financial Services such as banks, financial institutions, housing finance and other financial services etc. are considered eligible.
- Within eligible universe, weights of each subsector based on average free float market capitalization is calculated.
- Selection of 20 companies from each sub-sector is made in such a manner that weightage of selected constituents closely matches with the weightage of the sub-sector as explained earlier.
- A preference within each sub-sector is given to companies that are available for trading in NSE’s Futures & Options segment.
- Companies will be included if average free-float market capitalisation is 1.5 times the average free-float market capitalization of the smallest index constituent.
- Weightage of each stock in the index is calculated based on its free-float market capitalization such that no single stock shall be more than 33% and weightage of top 3 stocks cumulatively shall not be more than 62% at the time of rebalancing
Index Re-Balancing:
Index is re-balanced on semi-annual basis. The cut-off date is January 31 and July 31 of each year, i.e. For semi-annual review of indices, average data for six months ending the cut-off date is considered. Four weeks prior notice is given to market from the date of change.
Index Governance:
A professional team manages all NSE indices. There is a three-tier governance structure comprising the Board of Directors of NSE Indices Limited, the Index Advisory Committee (Equity) and the Index Maintenance Sub-Committee.
Key Indices
| Broad Market | Sectoral Indices | Thematic Indices | Strategy Indices | Fixed Income |
|---|---|---|---|---|
| Nifty 50 | Nifty Bank | Nifty CPSE | Nifty100 Equal Weight | Nifty 10 yr Benchmark G-Sec |
| Nifty Next 50 | Nifty IT | Nifty Commodities | Nifty50 PR 1x Inverse | Nifty 8-13 yr G-Sec |
| Nifty 100 | Nifty PSU Bank | Nifty Energy | Nifty50 PR 2x Leverage | Nifty 4-8 yr G-Sec |
| Nifty 200 | Nifty FMCG | Nifty Shariah 25 | Nifty50 Value 20 | Nifty 11-15 yr G-Sec |
| Nifty 500 | Nifty Private Bank | Nifty 100 Liquid15 | Nifty100 Quality 30 | Nifty 15 yr and above G-Sec |
| Nifty Midcap 50 | Nifty Metal | Nifty Infrastructure | Nifty Low Volatility 50 | Nifty Composite G-Sec |
| Nifty Midcap 100 | Nifty Financial Services | Nifty Corporate Group | Nifty Alpha 50 | Nifty 1D Rate |
Contact Us:
Email: indices@nse.co.in | Tel: +91 22 26598386 | Fax:+91 22 26598120
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