The Bank NIFTY comprises of the most liquid and large Indian Banking stocks. The Index has 12 stocks from the banking sector which trade on the National Stock Exchange of India Ltd.(NSE).
NIFTY Bank Index can be used for a variety of purposes such as bench marking fund portfolios, launching of index funds, ETFs and structured products.
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.
Most of the Algo trading strategies are designed based on Banknifty due to its liquidity. 
The Bank list with their  weightage: This might change based on the overall performance of existing banks and new banks on the basis of Free float Market capitalization.
Bank NamesWeight(%)
HDFC Bank Ltd26%
ICICI Bank Ltd.22%
Kotak Mahindra Bank Ltd.11%
State Bank of India12%
IndusInd Bank Ltd.5%
Axis Bank Ltd.12%
AU Small Finance Bank2.27%
Federal Bank Ltd.1.9%
Bandhan Bank2%
IDFC First Bank


Hope this might help all traders to know the distribution of Banks in BANKNIFTY and plan their trades as per the strategy. Please feel free to share your comment below the blog.

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Surajit Chatterjee

Surajit Chatterjee

DTMAlgo, is a Fintech startup aim to offer fully automated institutional standard trading products for Retail Traders at affordable price.

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