Nifty Financial Service Index Stocks List: 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 the 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.
Nifty Financial Service Index Stocks List Eligibility Criteria:
Companies should form part of NIFTY 500 at the time of review. In case, the number of eligible stocks representing a particular sector within NIFTY 500 falls below 10, then the deficit number of stocks shall be selected from the universe of stocks ranked within the top 800 based on both average daily turnover and average daily full market capitalisation based on the previous six months period data used for index rebalancing of NIFTY 500.
Companies should form part of the Finance Sector.
The company’s trading frequency should be at least 90% in the last six months.
The company should have a listing history of 6 months. A company, which comes out with an IPO will be eligible for inclusion in the index if it fulfils the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.
Final selection of 15 companies shall be done based on the free-float market capitalization of the companies with an aim to provide adequate representation to sectors such as banks, financial institutions, housing finance and other financial services.
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.
Nifty Financial Services Index Re-Balancing
The index is re-balanced on a semi-annual basis. The cut-off date is January 31 and July 31 of each year, i.e. For a 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 the change.
Nifty Financial Services Index: 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.
HDFC Bank Ltd
Housing Development Finance Corporation
ICICI Bank Ltd
Kotak Mahindra Bank
Axis Bank Ltd
State Bank of India
Bajaj Finserv Ltd
HDFC Life Insurance
SBI Life Insurance
Power Finance Corporation
Shriram Transport Finance Company Ltd
ICICI General Insurance Co. Ltd
Cholamandalam Investment and Finance Company Limited