Nifty Bank

NIFTY Bank or Bank NIFTY is an index focused solely on the banking sector. It comprises the most liquid Indian banking stocks and is the second most tracked index after the Nifty index.

The index is calculated using the free float weighted method and has twelve stocks from the banking sector. The NIFTY Bank Index has gained significance due to the high weightage of financials in the index.

The NIFTY Bank Index was launched in the year 2000. The base year is taken as January 1, 2000, and the base value is taken as 1000.

The purpose of the NIFTY Bank Index is to provide investors and market intermediaries a benchmark that captures the capital market performance of public-sector and private-sector Indian bank stocks.

Eligibility Criteria for Selection of Stocks in the Bank Nifty index:

1. Companies should form part of NIFTY 500 at the time of review.
2. Companies should form a part of the Banking sector.
3. The company's trading frequency should be at least 90% in the last six months.
4. The company should have a listing history of 6 months.
5. Companies that are allowed to trade in F&O segment are only eligible to be constituent of the index.
6. Final selection of 12 companies shall be done based on the free-float market capitalization of the companies.
7. 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

12 banks, including both public and private-sector banks, are listed in the NIFTY Bank Index. Currently, these include:

1. State Bank Of India
2. HDFC Bank Ltd
3. Kotak Mahindra Bank Ltd
4. The Federal Bank Ltd
5. Bank Of Baroda
6. ICICI Bank Ltd
7. IndusInd Bank Ltd
8. Axis Bank Ltd
9. Punjab National Bank
10. IDFC First Bank Ltd
11. Bandhan Bank Ltd
12. AU Small Finance Bank Ltd

You can invest in the Bank Nifty Index through the various listed ETF like BANKBEES, ICICI Prudential Nifty Bank ETF, etc. Currently, BANKBEES are the most popular option. There are index funds for Bank Nifty.

You can use different criterias to arrive at the list of best stocks in the Nifty Bank company index. You can use return ratios like ROCE or ROE, that will help you choose companies with profitable growth.

Based on ROE, the best stocks in the Nifty Bank companies index are:

Based on the past year's gain, the best performing stocks are:

To select the best stocks from the Nifty Bank, you can check factors like stock returns over different time frames, the Return on Equity, the Price to Earnings (P/E) ratio, Price to Book Value (P/BV) ratio, and the company’s profitability.

Companies that have performed well fundamentally are more likely to see their stock prices gain too.

Nifty Bank Stocks with the highest revenue growth in the past five years is :

Companies with high profit growth often witness their stock prices gaining, irrespective of the market movements.

Nifty Bank companies that had the highest profit growth in the past five years is :