FINNIFTY Weightage | All About Nifty Financial Services Index
About FIN NIFTY
The Fin Nifty, also known as the Nifty Financial Services Index, was launched by the National Stock Exchange (NSE) in January 2021. The Fin Nifty index comprises 20 financial services companies listed on the NSE to reflect the performance of the Indian financial market.
These 20 financial companies include- banks, financial institutions, housing finance, insurance companies, credit card companies, and other financial services listed on the National Stock Exchange.
Constituents of the Finnifty/ Nifty Finance Index
The Finnifty or Nifty Finance Index, which consists of 20 stocks, includes bigger names like HDFC Bank, ICICI Bank, and Kotak Bank, and these stocks have higher weightage than some of the small NBFC stocks, where the weight is very minimal. It is broadly classified into three categories Banks, NBFCs, and Insurance. Whereas the Banking stocks weightage is 65%, NBFC’s about 25%, and Insurance Companies and other other financial institutions comprise about 10%
So, the FIN Nifty or Nifty Financial Services Index banking stocks dominate the index. However, after the inclusion of LIC, the weightage of insurance has increased, and the weightage of the bank has slightly come down.
Fin Nifty Weightage – Nifty Finance Index- As of Dec 2023
| Company Name | Sector | Weightage |
| HDFC Bank | Bank | 24.41% |
| ICICI Bank | Bank | 13.82% |
| State Bank of India | Bank | 10.97% |
| Bajaj Finance | Finance- NBFC | 9.09% |
| Kotak Mahindra Bank | Bank | 7.28% |
| Axis Bank | Bank | 6.81% |
| Bajaj Finserv | Finance- NBFC | 5.43% |
| HDFC Life Insurance | Insurance | 2.90% |
| SBI Life Insurance Company | Insurance | 2.90% |
| Power Finance Corp. | Finance-Term Lending | 2.75% |
| REC Limited | Finance- Term Lending | 2.30% |
| Cholamandalam Investment | Finance- NBFC | 2.04% |
| Shriram Finance | Finance- NBFC | 1.57% |
| ICICI Prudential | Insurance | 1.56% |
| SBI Cards | Finance- NBFC | 1.44% |
| ICICI Lombard | Insurance | 1.42% |
| HDFC Asset Management | Finance- Asset Management | 1.28% |
| Muthoot Finance | Finance- NBFC | 1.18% |
| LIC Housing Finance Ltd. | Insurance | 0.58% |
| Indian Energy Exchange | Power Generation & Distribution | 0.28% |
Top Things to Know about Finnifty Trading Today
Trading in FinNifty has become very popular nowadays. After Nifty and Bank Nifty index trading, the Fin Nifty index is the third most popular one where traders make good money. The top things that you should know before trading in the Finnifty or Nifty Financial Services Index are:
- Finnifty is reconstituted semi-annually, i.e., in June and December that is entry and exit of its stocks happens in six months.
- The lot size for Finnifty futures and options is 40, whereas the maximum number of lots allowed in a single order is 45. The price step for Finnifty futures contracts is Re.0.05.
- Finnifty expiry happens on both a weekly and monthly basis. The weekly contracts expire every Tuesday of the expiry week, while the monthly ones expire on the last Tuesday of the expiry month. If the expiry day is a trading holiday, the previous trading day is considered the expiry day.
- The quantity freeze limit for Finnifty futures contracts is determined by the NSE and published on their website. If an order exceeds this limit, it will be rejected by the system.
Conclusion
Achieving success in Finnifty trading needs a carefully planned approach. Do concentrate on managing risks and consistently analyze the market. To gain significant rewards and profit from the Finnifty, it’s essential to have a basic knowledge of Finnifty, implement effective trading strategies, and maintain discipline.
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Happy Investing!!
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