Nifty Bank Stocks List

The 12 most liquid and well capitalised stocks from the banking sector that are traded on the National Stock Exchange make up Bank Nifty (NSE). It offers market intermediaries and investors a benchmark that accurately reflects the capital market performance of the Indian banking industry.

The free float market capitalization approach is used to calculate the NIFTY Bank Index.

It includes the biggest and most liquid Indian banking equities. Based on the companies' free-float market capitalisation, the final selection of 12 companies will be made.

The movement in Bank Nifty Index depends on the fundamental and technical factors:-

Fundamental Factors -

1. Bond Yield Movement :-Bond prices decline and bond yields increase as a nation's macroeconomic conditions (CPI, GDP, trade balance, and fiscal deficit) deteriorate. Rising bond rates reduce bank treasury revenue, and vice versa, from the perspective of stock market investments.
2. Quarterly result update of top 6 banks ( HDFC, ICICI, KOTAK, SBI, AXIS and IndusInd Bank ) :-To assess the market's overall trend on a quarterly basis, it is important to take into account for these banks variables such as Net interest income, core operating income, Net interest margin, asset quality improvement, Capital adequacy ratio, and CASA ratio.

Technical Factors -Basically, these are the derivative indicators which helps to understand the supply and demand of the Index in the market.

1. High Call and Put option OI of the Index.
2. High Call and Put option OI of HDFC, ICICI, KOTAK, SBI, Axis and IndusInd bank.
3. EMA Levels 10,20,50,100 and 200.
4. Index future OI and Price Movement on weekly and monthly basis.
5. Options activity in HDFC, ICICI, KOTAK, Axis and IndusInd Banks.