As a share trader, you must be keenly watching Nifty Bank or Bank Nifty, one of the major stock indices in India. It reflects the performance of the banking sector and compromises of the most prominent and liquid banking stocks in the country. Naturally, Bank Nifty serves as a benchmark of the health and momentum of the financial sector.
Bank nifty includes established banks from both the public and private sectors. Together, these stocks have a significant impact on India’s economy and the broader stock market. Investors can specifically gain exposure to the growth of the banking sector and benefit from its movements.
In this blog, we are going to discuss the top five bank stocks that influence the Bank Nifty index.
5 Bank Stocks that Move the Bank Nifty Index
- SBI
Being the largest public sector bank in India, SBI has a massive impact on Nifty Bank. It has an extensive reach and provides comprehensive banking services. SBI has a large customer base across India and has rolled out a wide range of services, ranging from corporate finance to retail banking.
The performance of SBI in Bank Nifty is influenced by government policies, domestic interest rates, and shifts in economic services. The SBI share price has recorded a 40.01% growth in the last year.
- CMP: INR 830+ (As of Dec ‘24)
- Market Cap: INR 6,96,656 crore
- 1-Year Return: 40.41%
- HDFC Bank
HDFC Bank continues to maintain its position as one of the largest private sector banks in India. It holds a substantial weight in the Bank Nifty index. The financial institute largely focuses on retail banking and offers a wide range of services like credit cards, loans, and wealth management.
Its efficient management, strong balance sheet, and focus on customer service make it a leader in the private banking sector.
- CMP: INR 1,800+ (As of Dec ‘24)
- Market Cap: INR 13,29,740 crore
- 1-Year Return: 16.5%
- ICICI Bank
ICICI Bank is another major private bank in India, known for its innovation in digital banking and customer support. It serves a wide range of customers, ranging from corporate to retail. Its services include everything from personal banking to investment banking services.
Particularly, with its focus on non-performing asset (NPA) management, ICICI Bank often records strong stock movements that impact bank nifty. Also, the bank continues to digitize and expand its portfolio of financial services.
- CMP: INR 1,300+ (As of Dec ‘24)
- Market Cap: INR 8,84,911 crore
- 1-Year Return: 37.04%
- Axis Bank
Axis Bank finds its name among the most prominent private sector banks in India. It has a significant influence on Bank Nifty, with a balanced approach towards corporate and retail banking.
The approach of Axis Bank to expand its loan book, along with a conservative policy for risk management, has strengthened its performance.
- CMP: INR 1,100+ (As of Dec ‘24)
- Market Cap: INR 3,67,416 crore
- 1-Year Return: 24.48%
- Kotak Mahindra Bank
Kotak Mahindra Bank stands out with its strong financial discipline and customer-centric approach. It is a key player in Bank Nifty due to its large market capitalization.
It has already established a strong footprint in retail and corporate banking. Kotak Mahindra Bank has steadily expanded into asset management and insurance, broadening its influence in the financial ecosystem.
- CMP: INR 1,750+ (As of Dec ‘24)
- Market Cap: INR 3,51,577 crore
- 1-Year Return: 2.36%
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Conclusion
The Bank Nifty is a vital tool for analysts and investors looking to understand the performance of the banking sector in India. In this blog, we have shortlisted the most influential banking stock that moves this index. The individual as well as collective performance of these stocks shapes the movements of Bank Nifty.
