The Nifty Financial Services (FINNIFTY) Index serves as a barometer for the Indian financial market, encompassing a diverse range of financial entities such as banks, financial institutions, housing finance companies, insurance providers, and other financial services firms. The index comprises 20 prominent stocks listed on the National Stock Exchange (NSE), making it a vital indicator of the financial sector’s health.
On January 6, 2025, the FINNIFTY index recorded a sharp decline of 1.76%, with nearly all its constituents ending in the red. The sole exception was SBI Card, which managed to buck the trend.
HDFC Bank, a key component of the FINNIFTY index, extended its losing streak for the second consecutive day, shedding 2.21%. The decline followed the bank’s business update, which reported advances growth of 3% year-on-year and 0.9% sequentially. This slowdown is attributed to the bank’s deliberate strategy to reduce its Credit-Deposit Ratio, affecting its short-term growth trajectory.
Kotak Bank was another major drag, witnessing a 3% drop. The fall came after the bank announced the resignation of Milind Nagnur, its Chief Operating Officer and Chief Technology Officer, effective February 15, 2025. The sudden departure of a senior leader raised concerns about continuity in the bank’s operational and technological strategy.
In 2024, the FINNIFTY index delivered a robust 10% gain, marking its 9th consecutive year of positive returns. However, the momentum seems to have slowed in 2025. As of January 6, the index is down by 0.83% in 2025.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Jan 6, 2025, 4:43 PM IST
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