The **Bank Nifty** is a stock market index that represents the performance of the 12 most significant and liquid banks listed on the National Stock Exchange of India (NSE). The index is a subset of the broader Nifty 50 index, focusing specifically on the banking sector. It is widely used to gauge the health and performance of India's banking sector.

### Constituents of Bank Nifty:
As of January 2025, the Bank Nifty index consists of the following 12 banks:

1. **HDFC Bank**
2. **ICICI Bank**
3. **Axis Bank**
4. **State Bank of India (SBI)**
5. **Kotak Mahindra Bank**
6. **IndusInd Bank**
7. **Bank of Baroda**
8. **Punjab National Bank (PNB)**
9. **Bandhan Bank**
10. **Federal Bank**
11. **IDFC First Bank**
12. **RBL Bank**

These banks are selected based on their liquidity, market capitalization, and overall contribution to the banking sector. The index is weighted by free-float market capitalization, meaning that the more valuable banks have a higher weight in the index.

### Key Characteristics:
- **Representation**: Bank Nifty represents a broad cross-section of the banking industry in India, covering both private and public sector banks.
- **Sectoral Performance**: It reflects the overall health and performance of the banking and financial services sector in India.
- **Market Usage**: Investors and traders use the Bank Nifty index as a benchmark for the banking sector, and it is also traded through exchange-traded funds (ETFs) and futures contracts.

The performance of the Bank Nifty index can be a good indicator of the broader economic conditions, particularly in terms of credit growth, interest rates, and the overall health of the financial system in India.
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