Nifty Bank, also known as Bank Nifty, is an index that represents India’s most liquid and large-cap banking stocks. It serves as a benchmark for the banking sector’s performance, offering valuable insights into market trends and economic conditions. Comprising major public and private sector banks, the index reflects investor sentiment and sectoral movements. Traders and investors closely monitor Nifty Bank for its impact on financial markets, as it influences derivative trading and investment strategies. Its movements are shaped by factors such as monetary policy, interest rates, and banking sector developments, making it a crucial indicator of India’s financial landscape.

The Nifty Bank index is a sectoral benchmark on the National Stock Exchange (NSE) that tracks the performance of large and liquid banking stocks. It consists of up to 12 stocks, including public, private, and other banks. Launched on 15 September 2003, with a base year of 2000 and a base value of 1000, it is reconstituted semi-annually to reflect market changes. No stock exceeds 33%, and the top three cannot surpass 62% collectively. With a 17.6% CAGR (2000–2021), it has outperformed Nifty 50 in six of 10 years (2011–21). Governed by NSE Indices Limited, it also has a total returns variant for ETFs and funds.