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Weightage of Bank Sector in Indian Stock Market  – Trading Gyani

Weightage of Various Banks in BankNifty

Bank Sector has the highest weightage of 33% in Sensex & Nifty. As there is an average like the Sensex to show the economic situation of the Indian Market, Likewise there is also an average of the Bank Sector which shows the situation of the top 10 Indian Bank is BankNifty. BankNifty Index is formed of India’s top 10 banks like HDFC Bank, ICICI, Axis Bank, SBI, Kotak Bank, Punjab National Bank, Etc. These top 10 banks almost show the Banking Sector of India. To know the situation of the Banking Sector an individual has to analyze only BankNifty. Following are the banks which are included in BankNifty and their weightage in the BankNifty Index.

Weightage of Bank Sector in Indian Stock Market

HDFC full form is Housing Development Finance Corporation. HDFC was founded by Hasmukhbhai Parekh in 1977. HDFC Bank is India’s largest private bank and India’s 3rd largest company with a 109 Billion Dollar market cap. HDFC contributes 27.04% to BankNifty and the chart of the HDFC Bank and BankNifty is almost the same at many points because of weightage. HDFC alone contributes one-third of BankNifty. The reason behind any big moment in BankNifty is HDFC Bank and ICICI Bank.


ICICI’s full form is Industrial Credit and Investment Corporation Of India. ICICI Bank was formed on 5th January  1955 and its first chairman was Sir Arcot Ramasamy Mudaliar. ICICI Bank is the sixth largest company in India with a 74.29 Billion Dollar Market Cap. In the moment of BankNifty ICICI Bank contributes 23.03% which is the second highest contribution after HDFC Bank in BankNifty. To know the 50% momentum of BankNifty Traders just have to Analyse HDFC Bank and ICICI Bank because both combined contribute more than 50% to BankNifty.


KOTAKBANK full name is KOTAK MAHINDRA BANK and it is a company of Kotak Mahindra Group. It is founded by Uday Kotak in February 2003. KOTAK Bank’s headquarter is located in Mumbai. It is India’s second-largest private bank and 12th India’s largest company with a 45.69 Billion Dollar Market Cap. KOTAK Bank contributes 11.72% to the total momentum of BankNifty. It contributes more than one-tenth part of BankNifty.


SBIN full form is State Bank Of India. SBIN is the largest government bank and it is also the oldest bank in India with 200 Year History. SBIN was founded by Dukan Pichadi in 1806 and its first chairman was John Mathai. SBIN is the 7th largest company in India just after ICICI with a 60.54 Billion Dollar Market Cap. The weightage of SBIN in BankNifty is 11.27% and it also contributes more than one-tenth park of BankNifty.


AXIS Bank is formed as UTI Bank (Unit Trust Of India) in 1993. Axis Bank is the third largest Private Bank in India and 20th largest company in India with a 33.32 Billion Dollar Market Cap. Axis Bank Headquarters was located in Ahmedabad Gujarat but now it transferred to Mumbai Maharashtra. The weightage of Axis Bank at the moment of BankNifty is 11.18%, so it also contributes more than one-tenth part of BankNifty.


INDUSINDBK full name is IndusInd Bank. The name of this bank is inspired by Indus Valley Civilization. INDUSINDBK is established by Srichand P Hinduja in 1994. INDUSINDBK is the 57th largest company in India with a 10.75 Billion Dollar Market Cap. The weightage of INDUSINDBK in BankNifty moment is 5.58%.

The remaining four banks contributes less than 10% like BANKBARODA (Bank Of Baroda) contributes 1.84%, IDFCFIRSTB (IDFC First Bank) contributes 1.08%, FEDERALBNK (Federal Bank) contributes 1.68% and PNB (Punjab National Bank) contributes 0.91%. So that was the weightage of the top 10 banks of India and which is included in BankNifty. This is how BankNifty works and the whole Bank Sector works, Usually, an investor thinks all banks have equal weightage but that’s not true. The weightage is given on the basis of Market Cap and another measure.

Weightage of Bank/Finance Sector In Nifty 50

As the Nifty 50 is the second most popular index after Sensex as the representative of the Indian Stock Market. Nifty covers, 13 Sectors in that all major sectors of India are included and in that, all sectors are given different weightage as per importance and Market Cap in the Indian Economy. The Finance / Bank sector contributes more than one-third of Nifty with 34.41%. So the analyst of Nifty keeps eye on BankNifty because it is the most important element of Nifty. Finance Sector includes BankNifty, NIFTYPVTBANK, and CNXFINANCE. In the finance sector companies included HDFC, ICICI, IIFL, BAJAJ FINANCE, PNB, KOTAKBANK, AXISBANK, HDFC AMC, PAUL MERCHANTS, ABSL AMC, RBLBANK, FEDERALBANK, Etc.

Weightage of Bank/Finance Sector In Nifty 50

Weightage of Bank/Finance Sector In Sensex

Sensex is the most popular index internationally because it represents the Indian Stock Market and Sensex includes the Top 30 companies in Indian, 30 companies are taken from all sectors. Sensex also covers 18 sectors because of that it is more useful than Nifty. In Sensex also Bank / Finance sector have a weightage of 32.57% which is almost one-third part of the Sensex moment. The chart of Sensex, Nifty, and BankNifty is mostly in synchronized because of Finance Sector weightage and their importance. There are a total of 8 companies related to the Finance and Bank sector. According to Weightage, 2 Banking companies were included in the top 3 with weightage of 9.65% (HDFCBANK) and 8.78% (ICICIBANK).

Weightage Of the Bank/Finance Sector On the Indian Economy

As we saw Bank/Finance Sector contributes most to Sensex & Nifty which means it has huge importance for India and the Indian Economy. The Financial sector contributes 37% of GDP with 810 Billion Dollars, which is the highest among the service sector. The Banking sector contributes 19% of the total GDP with 410 Billion Dollars and which is the second highest among the service sector. India’s top 10 companies according to the market cap include 6 Banking and Finance companies which show their importance and necessity in the Indian Economy. The six companies included are HDFC BANK, ICICI BANK, HDFC, SBIN, BAJAJ FINANCE, and KOTAKBANK. So, the importance of the Banking and Finance sector is most in the Indian Economy.

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