My Take on the Nifty Financial Services 25/50 Index
As of May 30, 2025
I consider the Nifty Financial Services 25/50 Index very well-crafted index of the financial services sector. It is not a typical market-cap-weighted index, it is a special capped index to enhance diversification.
The most important is the letter in its name: 25/50. That means that the weight of any one single stock will not exceed 25 percent, and the total weight of all stocks whose individual weight is above 5 percent will not exceed 50 percent. This averts the small group of giants controlling the index and exposes a more proportionate exposure and this is very attractive to me. The methodology is a Periodic Capped Free-Float, and I'm analyzing the Total Returns variant.
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Key Performance & Fundamental Metrics
Let us take a glance at the critical numbers. The index performance has been very strong on long term basis and its valuation terms such as P/E and P/B are sensible as far as a high growth industry is concerned.
Total Return (1 Year)
Total Return (5 Yr CAGR)
P/E Ratio
P/B Ratio
Dividend Yield
Beta (vs NIFTY 50)
Index Performance Visualized
To get a better sense of the index, I've visualized its historical journey and current makeup. The long-term performance chart shows a strong, consistent growth path. The constituents chart clearly illustrates the index's concentration in banking and NBFCs, with ICICI and HDFC Bank being the dominant players, even with the capping rules.
Historical Performance (Since 2004)
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Top 10 Constituents by Weightage (%)
1-Year Return vs. Other Sectors (%)
Nifty Financial Services 25/50 Stocks list
For a granular view, here is the full list of the 20 companies that make up the index, updated with their latest market data. This table is fully interactive—you can search for a specific company or sort any column by clicking its header to get a deeper understanding.
Company Name | Symbol | Price (INR) As of 22 June, 2025 | Market Cap | P/E Ratio | Volume |
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My Notes on the Index Methodology
The rules for this index are what truly set it apart. The quarterly rebalancing is key to maintaining its diversification mandate.
- Base Index: The index follows the composition of the broader Nifty Financial Services Index.
- Individual Stock Cap: The weight of any single stock is capped at 25%. At the time of rebalancing, this is set to a stricter 22.5% to provide a buffer.
- Aggregate Stock Cap: The cumulative weight of all stocks with an individual weight above 5% cannot exceed 50%.
- Rebalancing Frequency: Unlike many other indices that rebalance semi-annually, this index rebalances its weights on a quarterly basis to strictly enforce the capping rules.
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