NIFTY BANK

Nifty Bank, also known as Bank Nifty, is a sectoral stock market index on the National Stock Exchange (NSE) of India that tracks the performance of the 12 largest and most liquid banking stocks listed on the NSE. Launched in 2003, it serves as a key benchmark for the Indian banking sector, providing investors, traders, and analysts with a measure of how the banking industry is performing in the stock market. The index is calculated using the free-float market capitalization-weighted method, meaning only shares available for public trading are considered, and larger companies have a greater impact on the index value. The main constituents include major banks such as HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, and State Bank of India. Nifty Bank is widely used for benchmarking fund portfolios, launching index funds and ETFs, and as an underlying for derivatives trading like futures and options. Its movements are closely monitored as an indicator of both the health of the banking sector and broader economic trends in India