Demonetisation hits financial sector's weight in Nifty

Banks and financial services lose out to information technology and power firms

Demonetisation has taken the zing out of India’s booming banks and financial services sector. There has been a 100-basis point (bp) decline in the sector weight in the benchmark NSE Nifty 50 Index in the last quarter due to investors’ concerns about the adverse impact of demonetisation on the financial sector’s earnings. 

The sector’s weight in the index stands reduced to 29.2%, down from 30.2%  at the close of September 2016 quarter. Bank stocks have been hit after the note ban. The Bank Nifty Index, which comprises 12 banks, is down 7.5%  since November 8 last year when demonetisation was