What if Nifty Financial Services or Fin Nifty
Nifty Financial Services is designed to reflect the financial services industry in India. Nifty Financial Services which is also known as Fin Nifty is a 20 stock index which includes companies from banks, financial institutions, housing finance, insurance companies and other financial services companies. 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.
Fin Nifty Stocks List and Weightage (1st October 2023)
HDFC Bank Ltd.
ICICI Bank Ltd.
Axis Bank Ltd.
Kotak Mahindra Bank Ltd.
State Bank of India
Bajaj Finance Ltd.
Bajaj Finserv Ltd.
HDFC Life Insurance Company Ltd.
SBI Life Insurance Company Ltd.
Shriram Finance Ltd.
Cholamandalam Investment and Finance Company
Power Finance Corporation Ltd.
ICICI Lombard General Insurance Company Ltd.
HDFC Asset Management Company Ltd.
SBI Cards and Payment Services Ltd.
ICICI Prudential Life Insurance Company Ltd.
LIC Housing Finance
Muthoot Finance Ltd.
Indian Energy Exchange Ltd.
How Nifty Financial Services Stocks are Selected
Stock Selection Criteria
i. Nifty 500 constituents representing Financial Services such as banks, financial institutions, housing finance and other financial services etc. are considered eligible.
ii. Within eligible universe, weights of each subsector based on average free float market capitalization is calculated.
iii. 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.
iv. A preference within each sub-sector is given to companies that are available for trading in NSE’s Futures & Options segment.
v. 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.
vi. 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 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.
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.