NSE on Thursday said that the financial services sector assumes significance as it accounts for 33.5% of the Nifty 500 index. The Nifty Financial Services Index comprises of 20 stocks and is designed to reflect the behaviour and performance of the Indian financial services market which includes banks, financial institutions, housing finance, insurance companies and other financial services companies.
Additionally, the bourse noted that in recent investment data, 48% of the new investment by foreign portfolio investors (FPIs) have been channeled towards the financial services sector. The sector accounted for 35% of the assets under the custody of FPIs. Many of the asset management companies have mutual fund schemes on the financial sector theme.
The exchange said, “The Nifty Financial Services index has a 94% correlation and a beta value of 1.2 with the Nifty 50 Index. It has a correlation of 98% with the Nifty Bank index. The Nifty Financial Services index has delivered annualised returns of 14.99% in the last five years.”
Credit: Financial Express