What Is NIFTY Bank (Bank Nifty)?

NIFTY Bank — widely called Bank Nifty — is a sectoral index on the NSE that tracks the most liquid and large-capitalised banking stocks listed in India. It's one of the most actively traded indices in the country.

What it tracks

The index is made up of major Indian banks — a mix of large private and public sector lenders. Because banking is central to the economy and heavily weighted in broad indices, Bank Nifty is a key barometer of financial-sector health and often leads overall market moves.

Why it's so heavily traded

Bank Nifty is a favourite among derivatives traders due to its high volatility and liquidity — its futures and options see enormous volumes. A big move in a heavily weighted bank can swing the index sharply.

Sectoral vs broad indices

Unlike the broad NIFTY 50, which spans all sectors, NIFTY Bank is a sectoral index focused on one industry — useful for seeing how banking is doing relative to the whole market. Explore Indian indices on the indices pages.