badshah_e_alam

NIFTY BANK Vs PSU Bank Vs Private Bank

Education
NSE:BANKNIFTY   NIFTY BANK
I was wondering who is pushing the Bank Nifty so I decided to visualize this by this simple comparison.
The three major PSU banks are compared with the NIFTY BANK there market cap is as follow

3 (25%) PSU banks out of 12 holds 28.05186836 % of NIFTY BANK VALUE.
9 (75%) Private banks out of 12 holds 71.94813164 % of NIFTY BANK.

(YoY) in % YTD in % 30 mar to 18 Nov in %

BANK NIFTY -5.56 -8.14 57.31

PSU BANK* -41.95 -43.64 6.03
State Bank Of India(L) -25.47 -26.3 31.7
Punjab National Bank(L) -49.1 -52.8 -7.29
Bank Of Baroda(L) -51.28 -51.82 -6.32

PRIVATE BANK** -17.32 -19.41 62.00
INDUSINDBK -42.02 -45.4 96.12
AXISBANK -13.6 -15.58 72.68
ICICIBANK -1.29 -8.21 56.2
HDFCBANK 11.16 9.92 68.91
RBLBANK -32.71 -36.7 47.8
KOTAKBANK 12.16 9.91 42.9
BANDHANBNK -37.12 -29.3 66.43
FEDERALBNK -32.51 -33.8 45
IDFCFIRSTB -20 -25.6 62

*Average of PSU banks included in NIFTY BANK only
** Average of Private banks included in NIFTY BANK only
(YoY) in % YTD in % 30 mar to 18 Nov in %
BANK NIFTY -5.56 -8.14 57.31
PRIVATE BANK** -17.32 -19.41 62.00
PSU BANK* -41.95 -43.64 6.03
Where BANK NIFTY is down by 5.5% PSU BANK* is down by 41.9% on YoY basis.
After 30 march 2020 where BANK NIFTY is up by 57.3% PSU BANK* is only up by 6% even though PSU banks holds 28.05186836 % of NIFTY BANK VALUE.

It is interesting to see that after 30 march 2020 ,the 28.05 %(%value in Bank Nifty ) of 57.3 is 16.7 that means PSU BANKS** contribution in Bank Nifty is lagging by (16.7-6=10.7)10.7%
It is interesting to see that after 30 march 2020 ,the 71.94 %(%value in Bank Nifty ) of 57.3 is 41.24 that means Private BANKS** contribution in Bank Nifty is leading by(62-41.24=20.76) 20.76%

With the above observation it is clear that at least PSU banks included in NIFTY BANK are the ultimate underperformers and the move of NIFTY BANK is solely because of the Private banks in NIFTY BANK in the last two years
Data Taken from nseindia official website.
Let me now what's your take on the above observation in comments and also comment about such bad performance of PSU banks.
Comment: The table I added is not showing properly, the first column is of stock , second column is of YOY % returns , third column is of YTD returns and 4th column is of Returns after 30 March 2020 to 18 Nov 2020
Comment: https://drive.google.com/file/d/16ejxm-j...
sorry for that messy data table here is a link for that table picture.

Comments

I am new for trading, But as per my pridiction, the whole game is on PSU Banks now..............
Also let me educate, Weather AU Small & Yes Bank ever part in BN ?

My Opinion , In case AU/YES participate the BN, It will cross 33K again.
Reply
badshah_e_alam Trade_Paresh
@Trade_Paresh, As of now AU and YES ban are not in The NIFTY Bank and The NIFTY Bank Index comprises of the most liquid and large Indian Banking stocks. It provides investors and market intermediaries a benchmark that captures the capital market performance of the Indian banks. The Index comprises of maximum 12 companies listed on National Stock Exchange of India (NSE).
Reply
Trade_Paresh badshah_e_alam
@badshah_e_alam, You are really BADSHA-E-ALAM ....Thanks for the Edu...
Reply
badshah_e_alam Trade_Paresh
@Trade_Paresh, thank you for your generous comment. keep learning, keep sharing.
Reply
badshah_e_alam Trade_Paresh
@Trade_Paresh, Eligibility Criteria for Selection of Constituent Stocks:
i. Companies should form part of NIFTY 500 at the time of review. In case, the number of eligible stocks representing a particular
sector within NIFTY 500 falls below 10, then deficit number of stocks shall be selected from the universe of stocks ranked within top
800 based on both average daily turnover and average daily full market capitalization based on previous six months period data used
for index rebalancing of NIFTY 500.
ii. Companies should form a part of the Banking sector.
iii. The company's trading frequency should be at least 90% in the last six months.
iv. The company should have a listing history of 6 months. A company which comes out with an IPO will be eligible for inclusion in
the index, if it fulfills the normal eligibility criteria for the index for a 3 month period instead of a 6 month period.
v. Companies that are allowed to trade in F&O segment are only eligible to be constituent of the index.
vi. Final selection of 12 companies shall be done based on the free-float market capitalization of the companies.
vii. Weightage of each stock in the index is calculated based on its free-float market capitalization such that no single stock shall be
more than 33% and weightage of top 3 stocks cumulatively shall not be more than 62% at the time of rebalancing.
References :NSE INDIA
Reply
Interesting and very fruitful
Reply
badshah_e_alam ManojKumarBanga
@ManojKumarBanga, Thank you. Keep learning, keep sharing.
Reply
sorry for that messy data table, I want to chat and post pic of table but need the reputation ,help me reach 10 reputation. I will definitely help you back.
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out