In the latest ongoing series of educating newbies about terminologies and their difference with closely related terms. We will cover the Difference between NIFTY and Bank NIFTY. In our previous article, we already discussed Nifty so will just brief the same and will share the point of difference between both these terms. Let’s begin then!
What is the Difference between NIFTY and Bank NIFTY?
Nifty represents an index consisting of the 50 most liquid and large-cap stocks from the National Stock Exchange. Nifty has got stock from varied sectors like IT, Automobile, Bank, Pharma, etc. Collectively it indicates the performance of stock from all major industries. On the other hand, Nifty Bank has only banking sector stock which is part of NIFTY50. It is also referred to as a sectoral index. In case investors like to track the performance of a particular index, especially banking then they can prefer NIFTY BANK for choosing the right stock pick.
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| NIFTY | BANK NIFTY |
|---|---|
| Consists of the top 50 stocks of the bluechip company | It consists of the top 12 stocks of only the banking sector |
| Represent the performance of the overall economy | Indicates only Banking Sector performance |
| Symbolizes the overall index thus diversifying your risk | It is quite volatile as it’s a sectoral index |
| Less risky as compared to Bank Nifty | It is quite risky as tracking the performance of the Banking sector only. |
| In case looking to invest in index funds, then NIFTY is a better option | In case looking for intraday trading to book short term profits, then Bank Nifty will have an edge |
Example
Here is the exhaustive list of NIFTY & Bank NIFTY STOCKS:
Current Nifty 50 Stocks Weightage 2023
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| Company Name | Weightage |
|---|---|
| Reliance Industries Ltd. | 11.92% |
| Infosys Limited | 9.15% |
| HDFC Bank Ltd. | 8.45% |
| ICICI Bank Ltd. | 6.65% |
| Housing Development Fin. Corp. Ltd.£ | 5.67% |
| Tata Consultancy Services Ltd. | 5.08% |
| Kotak Mahindra Bank Limited | 3.38% |
| ITC Ltd. | 2.88% |
| Larsen and Toubro Ltd. | 2.8% |
| Axis Bank Ltd. | 2.63% |
| Bajaj Finance Ltd. | 2.54% |
| State Bank of India | 2.48% |
| Hindustan Unilever Ltd. | 2.4% |
| Bharti Airtel Ltd. | 2.34% |
| Asian Paints Limited | 1.82% |
| HCL Technologies Ltd. | 1.62% |
| Titan Company Ltd. | 1.39% |
| Tata Steel Ltd. | 1.38% |
| Bajaj Finserv Ltd. | 1.35% |
| Maruti Suzuki India Limited | 1.32% |
| Sun Pharmaceutical Industries Ltd. | 1.3% |
| Tech Mahindra Ltd. | 1.22% |
| Wipro Ltd. | 1.15% |
| Hindalco Industries Ltd. | 1.09% |
| Tata Motors Ltd. | 1.02% |
| Mahindra & Mahindra Ltd. | 1.01% |
| UltraTech Cement Limited | 1% |
| Power Grid Corporation of India Ltd. | 0.97% |
| JSW Steel Ltd. | 0.93% |
| NTPC Limited | 0.84% |
| Grasim Industries Ltd. | 0.82% |
| Nestle India Ltd. | 0.81% |
| Indusind Bank Ltd. | 0.8% |
| Oil & Natural Gas Corporation Ltd. | 0.78% |
| Divis Laboratories Ltd. | 0.74% |
| Adani Ports & Special Economic Zone | 0.73% |
| Cipla Ltd. | 0.69% |
| Dr Reddys Laboratories Ltd. | 0.68% |
| HDFC Life Insurance Company Limited | 0.66% |
| SBI Life Insurance Company Ltd. | 0.65% |
| Bajaj Auto Limited | 0.62% |
| Tata Consumer Products Limited | 0.61% |
| Apollo Hospitals Enterprise Ltd. | 0.6% |
| UPL Ltd. | 0.56% |
| Britannia Industries Ltd. | 0.5% |
| Coal India Ltd. | 0.5% |
| Bharat Petroleum Corporation Ltd. | 0.45% |
| Eicher Motors Ltd. | 0.45% |
| Shree Cement Ltd. | 0.42% |
| Hero MotoCorp Ltd. | 0.39% |
Bank NIFTY
| Company | Market Price(Weightage) |
|---|---|
| HDFC Bank Ltd | ₹1374.35(1.48%) |
| ICICI Bank Ltd | ₹762.35(0.9%) |
| State Bank of India | ₹516.3(1.37%) |
| Kotak Mahindra Bank Ltd | ₹1760.85(2.3%) |
| Axis Bank Ltd | ₹801.8(0.89%) |
| IndusInd Bank Ltd | ₹989.25(1.72%) |
| Bank of Baroda | ₹113.9(1.15%) |
| Bandhan Bank Ltd | ₹336.4(4.13%) |
| AU Small Finance Bank Ltd | ₹1435.05(1.04%) |
| Punjab National Bank | ₹35.95(0.7%) |
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This list keeps on changing semi-annually based on averages on six months’ data. Even though the Nifty index only represents 50 of the 1600 businesses listed on the NSE, it accounts for up to 66 percent of the NSE’s float-adjusted market capitalization (float-adjusted means when an index considers only the shares that are available for investors and not held by other companies or government). As a result, it is thought to be a true reflection of the Indian stock market.