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An index is a group of selected stocks representing a specific industry or sector. An index represents the performance of the constituent stocks, and by tracking the movements of the Index, you can understand trends in a particular industry or sector, which helps you to grab potential opportunities.

Many indices exist, such as Nifty 50, Bank Nifty, Sensex, etc. But in this post, we are going to discuss “FINNIFY,” which is an index that represents the financial sector.


FINNIFTY is a Financial Services Index introduced in January 2021 to track the performance of the Indian financial sector. It includes 20 stocks from the Nifty 500, which offer financial services.

The companies include Banks, housing finance, insurance companies, NBFCs, and other companies offering financial services. The performance of Finnifty is directly linked to the performance of the 20 stocks listed within it. When these individual stocks perform well, Finnifty will perform well and vice versa.

Features of FINNIFTY

  1. It is a benchmark of the Indian financial sector.
  2. Its base value is 1000 & Base date is 1st January 2021.
  3. Twenty companies from the Nifty 500 are part of FINNIFTY.
  4. It is rearranged every half year.
  5. Finnifty is calculated using the free-float market capitalization method.
  6. Derivates such as Futures & Options are available to trade in Finnifty.
  7.  Benchmark to measure the performance of financial services and compare it with the overall sector’s growth.

List of Finnifty Components and Weightage

Stock NameWeightage
HDFC Bank Ltd36.83%
ICICI Bank Ltd20.19%
Axis Bank Ltd8.52%
Kotak Mahindra Bank Ltd7.70%
State Bank of India6.42%
Bajaj Finance Ltd5.72%
Bajaj Finserv Ltd2.45%
HDFC Life Insurance Company Ltd1.82%
SBI Life Insurance Company Ltd1.71%
Shriram Finance Ltd1.53%
Cholamandalam Investment and Finance Company Ltd1.27%
ICICI Lombard General Insurance Company Ltd1.01%
Power Finance Corporation Ltd0.91%
REC Ltd0.81%
SBI Cards and Payment Services Ltd0.78%
HDFC Asset Management Company Ltd0.73%
LIC Housing Finance Ltd0.70%
ICICI Prudential Life Insurance Company Ltd0.63%
Muthoot Finance Ltd0.44%
Indian Energy Exchange Ltd0.28%


  • Weightage can change based on the free float market capitalization method.

Sectors Involved In FINNIFTY

Sectors Involved In FINNIFTY

Finnifty Expiry Day

Futures & Options in Finnifty are settled on a weekly and monthly basis, & it is done in cash when the contract expires. Every week, it expires on Tuesday, and every month, the contract expires on the Last Tuesday. If, for any reason, Tuesday is a holiday, the previous trading day will be considered the expiration date for FINNIFTY contracts. 

Finnifty Lot Size

Finnifty Futures & Options contract lot size is 40 quantities per lot, and you can trade a minimum of 1 lot and a maximum of 45 lots in one order.

Order type/Order book/Order attributes

  • Regular lot order
  • Stop loss order
  • Immediate or cancel
  • Spread order

Significance and Benefits of Investing in FINNIFTY

  1. Investors: Investors looking to invest in the financial sector can use the Finnifty index as a reference. It provides a clear picture of the sector’s performance and growth potential, allowing them to make informed decisions based on the Index’s movements.
  2. Industry Analysis: For analysts and researchers, Finnifty shows overall growth in the Indian Financial Sector. They can identify trends, market sentiments, and potential investment opportunities by analyzing the index trend.
  3. Diversification: One of the key benefits of investing in FINNIFTY is its diversified exposure to various stocks within the Financial sector. Unlike Bank Nifty, which primarily focuses on banking stocks, on the other hand, FINNIFTY includes Banks, housing finance, insurance companies, NBFCs, and other companies offering financial services. This diverse exposure gives investors more opportunities to participate in the growth and potential of the entire financial service sector rather than being limited to a specific segment, like only banking.

How To Trade In The FINNIFTY Index?

You can not trade Finnifty directly like any other stock, but instead, you can trade in its derivatives.

To trade Finnifty derivatives in your Demat account, search for “Finnifty Futures and Options” on the Trading Dashboard and select the desired strike price. Then, you can easily buy or sell these derivatives to take advantage of market opportunities.


Finnifty has gained popularity among traders. However, it is necessary to understand all factors to make a well-informed decision. I hope this post “What is finnifty?” and “How to invest in it?” helps you to understand finnifty more clearly.

Happy trading!


An aspiring Finance student became obsessed with the stock market and decided to help beginners learn about it more easily. Created a website that would provide strategies and technical knowledge on how to get started in the stock market.

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