Bank Nifty
The NSE's index of the most liquid large Indian banking stocks, used widely as a derivatives underlying.
Formula
Index Value computed from free-float market capitalisation of its banking constituents, weighted and capped per index rules
Unit
index points
In depth
Bank Nifty is a sector index rather than a market index, and it is considerably more volatile than the Nifty 50 because it is concentrated in one sector whose fortunes track credit conditions and interest rates together. Its derivatives are among the most heavily traded contracts in India, which is why it receives attention disproportionate to its role as a measure. Its concentration is extreme: a small number of constituents dominate the weight, so a single bank's results can move it several percent. Treating it as a proxy for the market is a mistake, since financials are one sector among many.
Worked example
A single large constituent carrying around a quarter of the index weight and falling 8% on results moves the whole index roughly 2% by itself, regardless of what the other constituents do.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “Bank Nifty” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.