stock market index
TRANSCRIPT
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NIFTY BANK BY :- SONALI SHARMA
STOCK MARKET INDEX
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PRESENTATION IS ALL ABOUT…
Stock market indexNIFTY bank indexPortfolio characteristicsTop constituents by weightageRe-balancing and governancemethodologyMarket representationSelection criteriaCompanies in NIFTY bankPrices of stocks in NIFTY bankGraphical representation
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STOCK MARKET INDEX A stock index or stock market index is a
measurement of the value of a section of the stock market. It is computed from the prices of selected stocks (typically a weighted average). It is a tool used by investors and financial managers to describe the market, and to compare the return on specific investments.
https://en.wikipedia.org/wiki/Stock_market_index
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CONTD….
Weighted average of prices of stock 1, stock 2, and stock 3 are used to make a stock market index. STOCK MARKET
INDEX
Stock 3
Stock 2
Stock 1
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NIFTY BANK INDEX 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 sector.
https://www.nseindia.com/live_market/dynaContent/live_watch/bn_home_page.htm
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PORTFOLIO CHARACTERISTICS
Methodology Free float market capitalization
No. of Constituents 12
Launch date September 15, 2012
Base date January 1, 2000
Base value 1000
Calculation frequency
Online daily
Index rebalancing Semi-Annually
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TOP CONSTITUENTS BY WEIGHTAGE
Company’s name Weight (%)HDFC bank Ltd. 31.70ICICI bank Ltd. 81.86Axis bank Ltd. 12.01Kotak mahindra bank Ltd. 10.95State bank of India 9.16IndusInd bank Ltd. 7.32Yes bank Ltd. 4.90Bank of baroda 1.96Federal bank Ltd. 1.34Punjab national bank 1.07
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RE-BALANCING OF INDEX Index is re-balanced on semi-annual
basis. The cut-off date is January 31 and July 31 of each year, i.e. For semi-annual review of indices, average data for six months ending the cut-off date is considered. Four weeks prior notice is given to market from the date of change.
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GOVERNANCE OF INDEX A professional team at IISL manages
Nifty Bank Index. There is a three-tier governance structure comprising the Board of Directors of IISL, the Index Policy Committee and the Index Maintenance Sub-Committee.
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METHODOLOGY Nifty Bank Index is computed using free float
market capitalization method with base date of Jan 1, 2000 indexed to base value of 1000, wherein the level of the index reflects total free float market value of all the stocks in the index relative to a particular base market capitalization value. The method also takes into account constituent changes in the index and importantly corporate actions such as stock splits, rights, new issue of shares etc. without affecting the index.
https://www.nseindia.com/products/content/equities/indices/sectoral_indices.htm
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MARKET REPRESENTATION The Nifty Bank Index represent about 15.6% of
the free float market capitalization of the stocks listed on NSE and 93.3% of the free float market capitalization of the stocks forming part of the Banking sector universe as on March 31, 2016.
The total traded value for the last six months ending March 2016 of all the Index constituents is approximately 12.5% of the traded value of all stocks on the NSE and 88.1% of the traded value of the stocks forming part of the Banking sector universe. https://www.nseindia.com/products/content/equities/indices/sectoral_indices.htm
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SELECTION CRITERIA Selection of the index set is based on the
following criteria:
Companies ranked within top 800 based on both average daily turnover and average daily full market capitalisation based on previous six months period data are considered eligible.
The constituents should be available for trading in the derivatives segment (Stock Futures & Options market) on NSE.
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CONTD…. Company's trading frequency should be at
least 90% in the last six months.
Companies should form a part of the banking sector.
A company which comes out with a IPO will be eligible for inclusion in the index, if it fulfils the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.
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CONTD…. Final selection of 12 companies shall be
done based on the free-float market capitalization of the companies.
https://www.nseindia.com/products/content/equities/indices/sectoral_indices.htm
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COMPANIES IN NIFTY BANKCOMPANY NAME
INDUSTRY
Axis bank Banks - private sector
Bank of baroda Banks - public sector
Bank of india Banks - public sector
Canara bank Banks - public sector
Federal bank Banks - private sector
HDFC bank Banks - private sector
ICICI bank Banks - private sector
IndusInd Bank Banks - private sector
Kotak mahindra
Banks - private sector
PNB Banks - public sector
SBI Banks - public sector
Yes bank Banks - private sector
These stocks
Are includedin NIFTY
Bank index and are traded
in NSE
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PRICES OF STOCKS IN NIFTY BANK
COMPANY NAME
INDUSTRY LAST PRICE
CHANGE % CHANGE
MARKET CAPITAL
AXIS BANK Bank - private
548.85 - 4.95 - 0.89 131042.46
BANK OF BARODA
Bank - public
154.85 1.05 0.68 35777.32
BANK OF INDIA Bank – public
112.30 1.75 1.58 10489.21
CANARA BANK Bank – public
261. 45 3.65 1.42 14196.50
FEDERAL BANK Bank – private
65.00 0.50 0.78 11175.94
HDFC BANK Bank – private
1236.95 - 1.85 - 0.15 313573.26
ICICI BANK Bank – private
270.60 8.95 3.42 157409.11
IndusInd Bank Bank – private
1178.30 21.85 1.89 70212.71
KOTAK MAHINDRA
Bank – private
754.00 2.30 0.31 138417.97
PNB Bank – public
132.80 3.50 2.71 26076.57
SBI Bank – public
229.25 2.55 1.12 177961.66
YES BANK Bank - private
1200.45 0.30 0.02 50558.56
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GRAPHICAL REPRESENTATION
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CONCLUSION As banks are the life line of our Indian
economy so bank NIFTY is one of the most important index of NSE.
Market capitalization of bank NIFTY is more than NIFTY 50 it shows that total weightage of bank NIFTY is even more than NIFTY 50.
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SONALI SHARMA
THANK YOU :