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The Nifty Bank index has considerably underperformed the Nifty50 index over the past one month. The benchmark Nifty Bank index lost 4.20 percent of its value – 1,929.80 points – over the past 30 days and currently trades at 43,993.24 points in comparison of the Nifty50 index which has remained flat over the same duration.

The Bank Nifty’s top five stocks as on August 22 are HDFC Bank (28.42 percent weightage), ICICI Bank (24.04 percent), Kotak Bank (9.40 percent), Axis Bank (9.35 percent) and State Bank of India (9.89 percent).
A look at the returns of these stocks shows that the primary reason for the underperformance of the Nifty Bank index is the significant fall in HDFC Bank and Kotak Bank – the worst performers over the past month.
The two banks have a combined weightage of 37.82 percent in the index. HDFC Bank lost 5.78 percent over one month and Kotak Bank lost 7.24 percent over the same duration. State Bank of India, ICICI Bank and Axis Bank also contributed by losing 8.01 percent, 4.23 percent and 1.39 percent, respectively.

Arbind Tiwari