Nifty PSU Bank

NIFTY PSU Bank index tracks the performance of public sector banks listed on National Stock Exchange (NSE). Launched on 30 August 2007 with a base value of 1000, this real time index includes 12 PSU bank stocks. It’s updated every six months to reflect changes in the banking sector. NIFTY PSU Bank index which has seen its value rise above 2,500, is managed by NSE Indices Limited formerly India Index Services & Products Limited. It has a governance structure involving NSE Indices Board, Advisory Committee, and  Maintenance Sub Committee. Additionally, there's a related NIFTY PSU Bank Total Returns Index, useful for creating index funds, ETFs and other investment products and for benchmarking investment portfolios.

NIFTY PSU Bank index measures the performance of public sector banks listed on National Stock Exchange. Established on August 30, 2007, with a base value of 1000, it includes 12 tradeable PSU bank stocks including State Bank of India, Bank of Baroda, Punjab National Bank, Canara Bank, Union Bank of India, Indian Bank, Bank of India, Indian Overseas Bank, Central Bank of India, Bank of Maharashtra, Punjab & Sind Bank, and UCO Bank. NIFTY PSU Bank index is updated every six months to keep up with the evolving banking sector. Managed by NSE Indices Limited, it has a governance structure with a Board of Directors, an Advisory Committee, and a Maintenance Sub Committee. 

NIFTY PSU Bank index value is calculated using the formula:

Index value = Current free float market capitalization/ (Base free float market capitalization * Base Index Value)

NIFTY PSU Bank index is updated every six months, using data from January to June and July to December. If any changes are needed new stocks are added or removed on the last trading day of March and September. This regular review helps the index stay current with the performance of public sector banks. This process ensures that the index accurately reflects the evolving banking sector, making it a reliable tool for tracking these bank’s performance.
 

1. The stock must be listed on the National Stock Exchange.

2. It should be among the top 800 companies in NIFTY 500 list.

3. At least 51% of the company’s shares must be owned by the central or state government.

4. The company must be part of the Public Banking sector.

5. The stock should have been traded at least 90% of the time over the past six months.

6. The company must have been listed for at least six months. However, if a company is newly listed, it can be included after three months if it meets all other criteria.

7. If there are fewer than 10 eligible PSU banks, other top 800 stocks from NIFTY 500 list are considered, based on their trading activity and market size.

8. To be included, a stock’s market value must be at least 1.5 times that of the smallest stock in the index.

9. During rebalancing a single stock can’t make up more than 33% of the index and the top three stocks together can’t exceed 62% of the index.

Nifty PSU Bank index tracks the performance of these PSU banks, with its value reflecting the combined market performance of these stocks.
 

NIFTY PSU Bank index tracks the performance of 12 public sector banks listed on National Stock Exchange. Launched on 30 August 2007 with a base value of 1000, it is updated every six months. Stocks in the index are selected based on their free float market capitalization and must meet several criteria, company stock needs to be listed on NSE, have at least 51% government ownership and be part of the public banking sector. Additionally, stock must have a trading frequency of at least 90% and a listing history of at least six months. Stocks are capped at 33% individually and 62% for the top three stocks to ensure balance.
 

Investing in NIFTY PSU Bank index offers several benefits. It provides exposure to major public sector banks in India, which can be more stable compared to private sector banks due to government backing. NIFTY PSU Bank index represents a diversified portfolio of 12 leading PSU banks, reducing individual stock risk. It benefits from periodic rebalancing which keeps it aligned with current market conditions and performance. Investors gain access to a sector with consistent regulatory support and growth potential in India's expanding economy. Additionally, investing in NIFTY PSU Bank can be a way to capitalize on government led banking reforms and infrastructure development, potentially offering stable returns and lower volatility compared to broader market indices.

NIFTY PSU Bank index launched on 30 August 2007, tracks 12 public sector banks listed on NSE. It started with a base value of 1000 and a base date of 1 January 2004. NIFTY PSU Bank index updates every six months to reflect changes in the Indian banking sector. Its value has risen significantly, As of September 2024 Nifty Psu bank index trading at 6,692.95. Managed by NSE Indices Limited, NIFTY PSU Bank index offers a real time view of public sector bank performance, ensuring it stays relevant and accurate. By including a broad range of banks, it provides investors with a diversified investment option in the public sector banking industry.

You can invest in NIFTY PSU Bank index through two main methods, buying individual stocks of the public sector banks listed in the index or using Exchange Traded Funds (ETFs) that aim to match the index's performance, with minimal tracking errors.
 

NIFTY PSU Bank stocks are shares of public sector banks included in NIFTY PSU Bank index. This index features major banks like State Bank of India, Bank of Baroda and Punjab National Bank reflecting the performance of key public sector players in the Indian banking sector.
 

Yes, you can trade shares of companies listed in the Nifty PSU Bank Index through a Demat account. You can buy and sell these stocks during market hours like any other listed stock. Additionally, you can invest in ETFs or index funds based on the Nifty PSU Bank Index for broader exposure.
 

NIFTY PSU Bank index was launched on 30 August 2007 by National Stock Exchange to track the performance of listed PSU banks.
 

Yes, you can buy Nifty PSU Bank stocks and sell them the next day, following the BTST (Buy Today, Sell Tomorrow) strategy. This allows you to take advantage of short term price movements without waiting for the usual settlement period.