FINNifty Index: Live FINNifty Index Share Price & Charts | 5paisa (2024)

Open Account Now

23991.55 + 1.70 (0.01%)

As on 17 Sep 2024 05:42 PM

FINNIFTYPerformance

• Open

  24,022.50

• High

  24,049.70

• Low

  23,939.75

• Prev Close

  23,989.85

• Dividend Yeild

  0.90%

• P/E

  17.09

Finnifty FuturesFinnifty Option Chain

Get Access To More Insightful Information

Color code for Stocks Performance

• 5% and above
• 5% to 2%
• 2% to 0.5%
• 0.5% to -0.5%
• -0.5% to -2%
• -2% to -5%
• -5% and below

The Nifty Financial Services Index, commonly referred to as Finnifty, is a crucial benchmark in India's financial sector, representing the top 20 companies across various financial domains, including banking, insurance, NBFCs, and housing finance. Launched by the National Stock Exchange (NSE), Finnifty offers investors a comprehensive view of the financial services industry's performance.

With banks making up a significant portion of the index, alongside other major financial institutions, Finnifty serves as a barometer for the health and trends within the sector. The index not only provides insights into market movements but also offers opportunities for investors to capitalize on the growth of India's financial services landscape.

The Nifty Financial Services Index, also known as Finnifty, is similar to the Nifty 50 but focuses exclusively on the stocks of financial institutions. Launched by the National Stock Exchange, it comprises 20 stocks from banks, insurance companies, NBFCs, housing finance companies, and other financial service firms.

Like the Nifty 50, stocks in Finnifty are selected based on their free-float market capitalization, which is calculated by multiplying the stock price by the number of outstanding shares available in the market. The index is updated every six months to reflect current market conditions.

The FINNIFTY index, like other stock indices, determines its value using market capitalization, which reflects the total market value of a company's outstanding shares. To maintain accuracy and fairness, FINNIFTY employs a free-float market capitalization-weighted method, considering only shares available for public trading and excluding those held by promoters or locked-in. This ensures a more accurate representation of each company’s market presence.

The weight of each company in the index is regularly adjusted based on market fluctuations and reviews. To prevent any single company from disproportionately influencing the index, FINNIFTY caps the weight of any individual stock at 33%, with the top three stocks together limited to 62% of the total index weight. New companies are added if their average free-float market capitalization is at least 1.5 times that of the smallest constituent. Regular updates keep FINNIFTY closely aligned with the evolving financial services sector.

● Eligibility: Constituent stocks must be part of the Nifty 500 and represent sectors like banking, financial institutions, housing finance, and other financial services.
● Subsector Weights: The weight of each subsector is calculated based on average free-float market capitalization.
● Selection of Companies: 20 companies are selected from each subsector to match the subsector's overall weight.
● F&O Preference: Preference is given to companies available for trading in NSE’s Futures & Options segment.
● Market Capitalization Requirement: Companies must have an average free-float market capitalization at least 1.5 times that of the smallest index constituent.
● Stock Weightage: The weight of each stock is based on its free-float market capitalization, with a maximum of 33% for any single stock and a cumulative maximum of 62% for the top three stocks at rebalancing.

Nifty Financial Services, commonly referred to as FINNIFTY, is a specialized stock market index that tracks the performance of the top 20 companies within India's financial sector, including banks, insurance companies, NBFCs, and housing finance firms. The index is designed to reflect the overall health of the financial services industry.

FINNIFTY uses a free-float market capitalization-weighted method to determine the value of its constituents. This means that only the shares available for public trading are considered, excluding those held by promoters or locked in. The weight of each company in the index is adjusted regularly based on market changes. To prevent any one company from having too much influence, the maximum weight for any single stock is capped at 33%, and the combined weight of the top three stocks cannot exceed 62%. The index is reviewed and updated regularly to ensure it accurately represents the current financial market landscape.

Investing in the Nifty Financial Services Index (FINNIFTY) offers several benefits, particularly for those looking to gain exposure to India's financial sector. This index includes the top 20 companies across various financial subsectors, such as banking, insurance, and NBFCs, providing investors with a diversified portfolio within the financial industry.

One key advantage is the potential for growth, as the financial sector often reflects the broader economy's performance. By investing in FINNIFTY, you gain access to well-established and leading financial institutions, which tend to be more resilient during economic fluctuations. Additionally, the index is regularly reviewed and updated to ensure it remains aligned with market trends, providing a dynamic and up-to-date investment option.

Furthermore, FINNIFTY offers liquidity and ease of trading, making it an attractive choice for both short-term traders and long-term investors seeking to capitalize on the growth of India's financial sector.

The Nifty Financial Services Index, commonly known as FINNIFTY, was introduced by the National Stock Exchange (NSE) as a specialized index to track the performance of India's financial sector. Launched in January 2021, FINNIFTY includes the top 20 companies from various financial services subsectors, such as banking, insurance, NBFCs, and housing finance.

The index was created to provide investors with a focused benchmark that reflects the health and growth of the financial services industry, which is a critical component of the Indian economy. By tracking companies with the highest free-float market capitalization in the sector, FINNIFTY offers a comprehensive view of the financial market's performance. Over time, the index has become a popular choice for investors looking to gain exposure to this vital sector, providing insights into the broader economic trends influencing the financial landscape in India.