Changes of Weightage in Bank Nifty Index

Public sector banks rise while private sector banks’ weightage in the Nifty Bank reaches a multi-year low. PSU Banks show a consistent rise in weight in Nifty Bank Index. SBI’s weight rose to 12 percent in February 2024 from 10.1 percent in March 2023, for PNB it was 2.4 percent from 0.9 percent, and for Bank of Baroda to 3.1 percent in February 2024 from 1.8 percent in March 2022. Let’s discuss why Private Sector Banks’ weightage in Nifty Bank hits multi-year low and on the other hand, why Public Sector Banks’ weightage in Nifty bank has surged ?