What is Bank Nifty ? What is the Nifty ?
What is Bank Nifty ?
Bank Nifty represents the 12 most liquid and large capitalised stocks from the banking sector which trade on the National Stock Exchange (NSE). It provides investors and market intermediaries a benchmark that captures the capital market performance of Indian banking sectorNifty Bank, or Bank Nifty, is an index comprised of the most liquid and large capitalised Indian banking stocks. It provides investors with a benchmark that captures the capital market performance of Indian bank stocks. The index has 12 stocks from the banking sector.
The top stocks of the index include HDFC Bank Ltd. 31.61%, ICICI Bank Ltd. 18.20%, Axis Bank Ltd. 13.02%, Kotak Mahindra Bank Ltd. 12.74% and State Bank of India 10.92%. Bank Nifty, like others, is computed using free float market capitalization method. It's index variant includes NIFTY Bank Total Returns Index or Bank NiFty TRI. The index was launched in 2003.
In the Futures and Options (FNO) segment, trading in Nifty 50 Index, Nifty IT index and Nifty Bank Index is extremely popular. This is why many investors looking for information and updates about these products.
NIFTY FNO is basically futures on Nifty index. Similarly, FNO Nifty IT is futures on Nifty IT index. All of them have a maximum of 3-month trading cycle and the futures contracts expire on the last Thursday of the expiry month.
Nirmal Bang provides F&O reports on a daily basis. This will help you understand FNO Bank Nifty Updates, NIFTY FNO Updates and FNO Nifty IT Updates in a jargon-less manner.
Like the Sensex, Nifty is a popular equity index in India. The Nifty is composed of 50 stocks. The Nifty 50 is owned and managed by NSE Indices Limited. As an index, the Nifty 50 Index represents about 66.8% of the free float market capitalization of the stocks listed on NSE as on March 29, 2019. A highly efficient index, the impact cost of the Nifty for a portfolio size of Rs 50 lakh is about 0.02%.
The Nifty 50 was launched on April 1 in the year 1996, and is one of the many stock indices of NSE. It can be traded and invested in by investors as well as market intermediaries. Other popular indices include Bank Nifty, Nifty IT just to name a few. Do note that Nifty index variants include NIFTY50 USD, NIFTY 50 Total Returns Index and NIFTY50 Dividend Points Index.
From June 26, 2009, NIFTY 50 started being computed based on free float methodology. The index is calculated on a real-time daily basis. Nifty is rebalanced semi-annually.
Investors and/or market intermediaries can get the latest Nifty closing report by clicking here. They can access this page everyday and find out how the Nifty moved intra-day.
What is the lot size for options in Banknifty & Nifty ?
The National Stock Exchange of India (NSE) on March 31 decided to reduce the lot size for the Nifty50's futures & options (F&O) contracts to 50 from 75. It has also slashed the F&O lot size of 40 stocks by 50 percent. The lot size for Nifty Bank at 25 and Nifty Financial Services at 40 has been kept unchanged.
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