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What is the story about?
Bank stocks that helped propel the Nifty50 to a fresh record high have notched a milestone of their own. The combined market capitalisation of Nifty Bank constituents reached the ₹50 lakh crore mark for the first time on Friday (November 28), underscoring the sector’s rising clout in India’s equity market.
The Nifty Bank index extended its winning streak for the third straight session, ending the week with a 1.5% gain — its strongest weekly showing in six weeks.
Five major lenders now hold a combined 30.3% weight in the Nifty50, giving banks disproportionate sway over the benchmark index. Even financials continue to be the top sectoral allocation for foreign portfolio investors (FPIs), who park nearly one-third of their India exposure in the segment.
At the stock level, HDFC Bank — the most influential Nifty50 component — carries a weight of nearly 13%, followed by ICICI Bank at 8.3%. SBI, Axis Bank, and Kotak Mahindra Bank round out the group, with weights of 3.4%, 3.1%, and the remaining share, respectively. Together, the five banks account for 30.3% of the benchmark’s movement.
Within the Bank Nifty’s 12 constituents, HDFC Bank leads with a market value of ₹15.5 lakh crore, followed by ICICI Bank at around ₹10 lakh crore and State Bank of India (SBI) at a little over ₹9 lakh crore. The three largest banks alone make up about 70% of the index. Notably, HDFC Bank and ICICI Bank together contribute more than half of the Nifty Bank’s total valuation.
According to Pranav Gundlapalle, Senior Analyst – India Financials at Bernstein, sector fundamentals remain supportive. “We are seeing overall growth picking up, and asset quality doesn’t look like a sector-wide issue. We remain positive on private banks such as HDFC Bank and Axis Bank, and expect steady compounding across most large banks,” he said, adding that public sector banks should continue to perform well, while most mid-tier banks are currently well-priced.
The rising heft of bank stocks is reshaping the broader market. The Bank Nifty now accounts for nearly one-fourth of the Nifty50’s valuation and represents around 11% of the entire NSE-listed universe. As of Friday’s close, the Nifty50’s combined market cap stood at ₹208 lakh crore, while the NSE’s total market capitalisation reached ₹472 lakh crore.
The Bank Nifty closed Friday’s session marginally higher at 59,752.70, putting it less than 250 points shy of the 60,000 milestone. Over the past three months, the index has risen 11%, comfortably outperforming the 6.4% gain in the Nifty50 over the same period.
The Nifty Bank index extended its winning streak for the third straight session, ending the week with a 1.5% gain — its strongest weekly showing in six weeks.
Five major lenders now hold a combined 30.3% weight in the Nifty50, giving banks disproportionate sway over the benchmark index. Even financials continue to be the top sectoral allocation for foreign portfolio investors (FPIs), who park nearly one-third of their India exposure in the segment.
At the stock level, HDFC Bank — the most influential Nifty50 component — carries a weight of nearly 13%, followed by ICICI Bank at 8.3%. SBI, Axis Bank, and Kotak Mahindra Bank round out the group, with weights of 3.4%, 3.1%, and the remaining share, respectively. Together, the five banks account for 30.3% of the benchmark’s movement.
Within the Bank Nifty’s 12 constituents, HDFC Bank leads with a market value of ₹15.5 lakh crore, followed by ICICI Bank at around ₹10 lakh crore and State Bank of India (SBI) at a little over ₹9 lakh crore. The three largest banks alone make up about 70% of the index. Notably, HDFC Bank and ICICI Bank together contribute more than half of the Nifty Bank’s total valuation.
According to Pranav Gundlapalle, Senior Analyst – India Financials at Bernstein, sector fundamentals remain supportive. “We are seeing overall growth picking up, and asset quality doesn’t look like a sector-wide issue. We remain positive on private banks such as HDFC Bank and Axis Bank, and expect steady compounding across most large banks,” he said, adding that public sector banks should continue to perform well, while most mid-tier banks are currently well-priced.
The rising heft of bank stocks is reshaping the broader market. The Bank Nifty now accounts for nearly one-fourth of the Nifty50’s valuation and represents around 11% of the entire NSE-listed universe. As of Friday’s close, the Nifty50’s combined market cap stood at ₹208 lakh crore, while the NSE’s total market capitalisation reached ₹472 lakh crore.
The Bank Nifty closed Friday’s session marginally higher at 59,752.70, putting it less than 250 points shy of the 60,000 milestone. Over the past three months, the index has risen 11%, comfortably outperforming the 6.4% gain in the Nifty50 over the same period.
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