At a glance
- Bank Nifty, officially the Nifty Bank index, tracks large and liquid Indian banking shares listed on the NSE.
- It is weighted by free-float market value, with caps introduced so that no single bank dominates.
- Its futures and options are among India's most traded index derivatives, and their rules have changed repeatedly.
Bank Nifty is the common name for the Nifty Bank index, a benchmark of Indian banking shares calculated by NSE Indices, part of the National Stock Exchange of India. It gives one number for how the country's largest listed banks are doing as a group. Because banks are closely tied to interest rates, credit growth and the wider economy, the index is watched well beyond India, and it underlies one of the most active groups of index derivatives in the country.
What the Nifty Bank index measures
The Nifty Bank index measures the combined free-float market value of its constituent banks relative to a base period, when the index was set at 1,000. Only shares available for public trading count: stakes held by founders, the government or strategic owners are excluded. Data vendors list it under names such as index Nifty Bank, NIFTY BANK or BANKNIFTY; all refer to the same series.
| Feature | Nifty Bank |
|---|---|
| Calculated by | NSE Indices |
| Universe | Banking companies from the Nifty 500 that meet trading and listing requirements |
| Number of constituents | 14 under the current rules (previously 12) |
| Weighting | Free-float market capitalisation, with periodic caps |
| Review | Semi-annual, with four weeks' notice of changes |
| Base value | 1,000 |
Nifty Bank index stocks and how they are weighted
The Nifty Bank index stocks are a mix of large private-sector banks and public-sector banks. Weight follows free-float value, so the biggest lenders have historically accounted for a large share of the index. In 2025 India's market regulator, SEBI, required indices that carry derivatives to be less concentrated. For Bank Nifty this meant raising the number of constituents from 12 to 14, limiting the largest stock to 20% of the index, and limiting the top three combined to 45%. The changes were phased in over four rebalancings ending on 31 March 2026, gradually reducing the weights of HDFC Bank, ICICI Bank and State Bank of India.
Because the list and weights change at each review, check NSE Indices' latest factsheet for the current constituents rather than relying on older lists.
How a single bank moves the index
An index move is roughly the sum of each member's price change multiplied by its weight.
Illustrative example With the index at 50,000, a bank carrying a 20% weight rises 2% while the others are unchanged. Its contribution is 20% × 2% = 0.4% of the index, or about 50,000 × 0.4% = 200 points. The same 2% rise in a bank weighted at 3% would add only about 30 points. This is why a results announcement from one of the largest banks can move Bank Nifty far more than news from a smaller member.
Reading Bank Nifty today and live quotes
When you check Bank Nifty today on a quote screen, the figure is the latest calculated index level during NSE's session, which runs from 09:15 to 15:30 India time on trading days. A Bank Nifty live feed from the exchange updates continuously while the market is open; many free websites show prices with a delay, so check the timestamp. Outside trading hours, the Nifty Bank today reading simply shows the last closing level.
The percentage change is measured from the previous close. The futures price you may see beside it is usually slightly different, because futures reflect the cost of carrying the position until expiry.
Bank Nifty futures and options
Bank Nifty derivatives are traded on NSE and settled in cash. Their rules have changed several times:
- Weekly expiries for Bank Nifty were discontinued from 20 November 2024, after SEBI limited each exchange to weekly contracts on a single benchmark index; on NSE that is the Nifty 50.
- Monthly contracts currently expire on the last Tuesday of the month, moved to the previous trading day if that is a holiday. Expiry days have shifted before, so confirm the current calendar with the exchange.
- Contract lot sizes are set by NSE and revised periodically as the index level changes.
Bank Nifty compared with the Nifty 50 and Sensex
| Nifty Bank | Nifty 50 | Sensex | |
|---|---|---|---|
| Exchange | NSE | NSE | BSE |
| Coverage | Banking sector only | 50 companies across sectors | 30 companies across sectors |
| Weighting | Free-float market value, capped | Free-float market value | Free-float market value |
| Use | Sector gauge, derivatives | Broad market benchmark | Broad market benchmark |
Because banks are a large part of the Nifty 50 as well, the two indices often move together, but Bank Nifty is usually more sensitive to interest-rate news. For how indices in general are built, see our stock market guide.
Reader questions
What is the difference between Bank Nifty and Nifty 50?
Nifty 50 covers 50 large companies across many sectors, while Bank Nifty covers only banking shares. Banks are a big part of the Nifty 50 too, so they often move in the same direction.
How many stocks are in Bank Nifty?
Under the rules phased in by March 2026, the index has 14 constituents, up from 12. The list is reviewed twice a year, so check the latest factsheet from NSE Indices.
Does Bank Nifty still have weekly expiry?
No. NSE discontinued weekly Bank Nifty contracts from 20 November 2024. Monthly contracts continue, currently expiring on the last Tuesday of the month.
Sources
- NSE Indices, Nifty Bank index factsheet and methodology
- Securities and Exchange Board of India, index derivatives eligibility and concentration norms (2025)
- Securities and Exchange Board of India, measures to strengthen the equity index derivatives framework (October 2024)
- Securities and Exchange Board of India, studies of individual traders' profit and loss in equity derivatives
- National Stock Exchange of India, F&O expiry calendar