Finnifty Introduction

If you're an investor or trader in India's financial markets, you may have come across the term "Finnifty" at some point. Finnifty is an abbreviation for the Nifty Financial Services Index, which represents the performance of the financial services sector in India. In this article, we will explore what Finnifty is, how it is calculated, its components, live charts, and other important aspects related to this index.

What is Finnifty?

Finnifty, short for Nifty Financial Services Index, is one of the many sectoral indices maintained by the National Stock Exchange of India (NSE). As the name suggests, it includes companies from the financial services sector, encompassing banks, NBFCs (Non-Banking Financial Companies), insurance companies, and other related financial institutions. Finnifty serves as a benchmark for the overall performance of the financial services industry in the Indian stock market.

Finnifty Chart and Live Price

If you want to track Finnifty's performance, you can do so through a Finnifty chart. These charts are readily available on Algotest.in. The chart provides insights into the historical price movements of Finnifty, allowing investors and traders to analyse trends and make informed decisions.

Finnifty with Algotest.in

At AlgoTest users get to perform backtesting on Finifty Index. This gives them the flexibility to design their strategies and deploy to test their results.Not only backtesting users also get to perform forward testing which is also termed as paper testing. This feature generally helps users to test their strategies while not spending real money. We at algotest had an excellent feature to deploy the live trading strategies by connecting with Trade Brokerage platforms. This helps users to automate their best strategies which are created in our platform using backward and forward testing. This eliminates the manual trading methods and automates trades for better informed decisions.

How is Finnifty Calculated?

Finnifty is a market capitalization-weighted index, which means that the weightage of each constituent company is determined by its market capitalization. The market cap is calculated by multiplying the company's share price by the number of outstanding shares. Companies with a higher market capitalization have a greater impact on the index's movement.

Finnifty Components and Weightage

As of now, Finnifty consists of several prominent financial companies in India. Some of the key constituents include HDFC Bank Ltd, ICICI Bank Ltd, Axis Bank Ltd, and so on. The weightage of each company may change over time due to market fluctuations and corporate actions like stock splits and mergers.

For example, let's say Company-A has a market cap of INR 100,000 crore, and Company-B has a market cap of INR 80,000 crore. If Finnifty has a total market cap of INR 1,000,000 crore, then Company-A will have a weightage of 10% and Company B will have a weightage of 8% in the Finnifty index. Here is the list of latest Finifty Index.

Finnifty Expiry and Expiry Day

Finnifty, like other indices in the Nifty family, does not have an expiry date. It is a perpetual index, meaning it continues to exist indefinitely. However, there is a concept of "Finnifty Expiry Day" in the context of derivative trading. On the expiry day of Finnifty futures and options contracts, these contracts settle based on the closing value of Finnifty. The expiry day occurs on the last Thursday of each derivative contract month.