Scribd Logo
Upload

Welcome to Scribd!

  • 41 views

    Ind Nifty Financial Services

    Uploaded by

    Prashant Dalvi
    The document summarizes the Nifty Financial Services Index, which tracks 20 stocks from the Indian financial sector. It discusses how the index is calculated using free float market capitalization and rebalances semi-annually. It also provides the top five constituents by weight and notes that the index is used as a benchmark for financial portfolios, index funds, and ETFs.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Ind Nifty Financial Services

    Uploaded by

    Prashant Dalvi
    41 views2 pages
    The document summarizes the Nifty Financial Services Index, which tracks 20 stocks from the Indian financial sector. It discusses how the index is calculated using free float market capitalization and rebalances semi-annually. It also provides the top five constituents by weight and notes that the index is used as a benchmark for financial portfolios, index funds, and ETFs.

    Original Title

    ind_Nifty_Financial_Services

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    The document summarizes the Nifty Financial Services Index, which tracks 20 stocks from the Indian financial sector. It discusses how the index is calculated using free float market capitalization and rebalances semi-annually. It also provides the top five constituents by weight and notes that the index is used as a benchmark for financial portfolios, index funds, and ETFs.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    41 views2 pages

    Ind Nifty Financial Services

    Uploaded by

    Prashant Dalvi
    The document summarizes the Nifty Financial Services Index, which tracks 20 stocks from the Indian financial sector. It discusses how the index is calculated using free float market capitalization and rebalances semi-annually. It also provides the top five constituents by weight and notes that the index is used as a benchmark for financial portfolios, index funds, and ETFs.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    April 30, 2021

    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 Periodic Capped Free Float Index Since
    QTD YTD 1 Year 5 Years
    Returns (%) Inception
    No. of Constituents 20
    Price Return -0.99 2.32 47.20 18.27 17.15
    Launch Date September 07, 2011 Total Return -0.97 2.36 47.59 19.08 18.48
    Base Date January 01, 2004
    Since
    Base Value 1000 Statistics ## 1 Year 5 Years
    Inception
    Calculation Frequency Online Daily Std. Deviation * 29.82 24.11 29.25
    Index Rebalancing Semi-Annually Beta (NIFTY 50) 1.38 1.21 1.16
    Correlation (NIFTY 50) 0.90 0.92 0.91
    1 Year Performance Comparison of Sector Indices
    Fundamentals
    P/E P/B Dividend Yield
    24.45 4.01 0.26

    Top constituents by weightage

    Company’s Name Weight(%)


    HDFC Bank Ltd. 24.40
    Housing Development Finance Corporation 17.29
    ICICI Bank Ltd. 16.47
    Kotak Mahindra Bank Ltd. 10.17
    Axis Bank Ltd. 7.12
    Bajaj Finance Ltd. 5.73
    State Bank of India 5.38
    Bajaj Finserv Ltd. 2.65
    HDFC Life Insurance Company Ltd. 2.19
    SBI Life Insurance Company Ltd. 1.44

    ## 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.
    1
    April 30, 2021

    Index Methodology
    Eligibility Criteria for Selection of Constituent Stocks:
    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 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: Bloomberg - NSEFIN Index


    Email: [email protected] | Tel: +91 22 26598386 | Fax: +91 22 26598120
    Learn more at: www.niftyindices.com Thomson Reuters - .NIFTYFIN
    2

    You might also like