What is Bank Nifty? , Which banks come under Bank Nifty?
In the stock market, people know about Nifty that the top 50 companies of India come under NIFTY, but when we hear about Nifty, we get to hear the name of Bank Nifty again and again.
So after all what is this Bank Nifty, is it an index of banks, why it was made, how Bank Nifty works, so today we will know in detail about Bank Nifty and also know how many and which are in Bank Nifty. Banks come?
What is Bank Nifty?
Bank Nifty is an index of 12 largest and trusted banks of India, by looking at which we can find out how high and how low the banking sector is today. You can find out only by looking at Bank Nifty whether there has been a growth in the banking sector of India today or whether it is a loss.
Today Bank Nifty is mostly used in intraday trading. In which shares are bought or sold on the same day.
When there is a movement in the price of stocks, then in Bank Nifty, the share prices of banks go up and down very fast and taking advantage of this rapid slowdown, most of the traders Profit by Buying or Selling Stocks through Intraday Trading. Book the loss which is very high in BankNifty.
There can be profit or loss in earning money through trading in Bank Nifty. It also depends on your Risk Management, that is why you should learn the right Trading Strategies first, only then you can earn good money by trading in Bank Nifty.
When was Bank Nifty started?
In the year 2000, IISL i.e. Indian Index Service Product Limited introduced the Bank Nifty index in the stock market. Even at that time only 12 banks were included in Bank Nifty and today there are only 12.
The motive behind creating Bank Nifty was to advance the banking sector of India and strengthen the position of the Indian stock market in the banking sector. That is why the Bank Nifty Index was brought to the stock market.
Now it becomes very important for you to know how many banks are there which are included in Bank Nifty. Now next we are also going to tell you that what are the names of 12 banks included in BankNifty?
Which banks come in Bank Nifty?
Although there are many big banks in India, but within Bank Nifty there are 12 banks with the highest market capitalization and volume, whose names are listed below according to the ranking.
STATE BANK OF INDIA
KOTAK MAHINDRA BANK
IDFC FIRST BANK
BANK OF BARODRA
PUNJAB NATIONAL BANK
These 12 banks have been included in Bank Nifty and by looking at them, we find out how much the banking sector is going up and how much is going down today.
All these banks come in the list of the largest banks in India because to be included in Bank Nifty, banks should have a significant amount of capital and volume.
Why has Bank Nifty been created?
the top 50 companies of India in Nifty belong to different sectors, it is not that only companies of IT sector come in them or only banks come or oil companies are involved in it.
So it means to say that all different sector companies have been mixed in Nifty whereas only banks have been included in BankNifty, that’s why Bank Nifty has been made so that we can see only the growth of banks. To track performance and progress.
Like Bank Nifty, different indexes have been created such as IT Industry, Oil Industry, Health Industry and Finance Industry index, apart from this, many different indexes have been created so that we can track a particular industry alone and find that index. And one of them is Bank Nifty, from which we can know everything about the banking sector only and only.