One index inside the other
Financial companies have a large weight in the Nifty 50, so Nifty Bank is both a part of the broad index and a more concentrated bet on the same sector. This post compares their calendar-year price returns from the end of 2016 to 16 October 2026, using daily closes, without dividends.
Year by year
| Year | Nifty 50 | Nifty Bank | Bank minus Nifty (points) |
|---|---|---|---|
| 2017 | +28.6% | +40.5% | +11.9 |
| 2018 | +3.2% | +6.3% | +3.2 |
| 2019 | +12.0% | +18.4% | +6.4 |
| 2020 | +14.9% | −2.8% | −17.7 |
| 2021 | +24.1% | +13.5% | −10.6 |
| 2022 | +4.3% | +21.2% | +16.8 |
| 2023 | +20.0% | +12.3% | −7.7 |
| 2024 | +8.8% | +5.3% | −3.5 |
| 2025 | +10.5% | +17.1% | +6.6 |
| 2026 to 16 Oct | −11.4% | −6.3% | +5.1 |
Nifty Bank was ahead in six of the ten periods and behind in four. The largest lead was +16.8 points in 2022, when it rose 21.2% against 4.3% for the broad index. The largest lag was −17.7 points in 2020, the year of the pandemic fall, when Nifty Bank ended 2.8% lower and the Nifty 50 ended 14.9% higher.
The full decade
| 30 Dec 2016 | 16 Oct 2026 | Multiple | Per year | |
|---|---|---|---|---|
| Nifty 50 | 8,186 | 23,146 | 2.83× | 11.2% |
| Nifty Bank | 18,177 | 55,844 | 3.07× | 12.1% |
Over 9.8 years the bank index compounded about 0.9 percentage points a year faster. That is a modest edge for taking a more concentrated position, and it was earned through the swings above, not a steady margin.
What the gaps look like
The swings are larger than the average gap. The average lead per period is about 1 point, but the individual gaps run from −17.7 to +16.8. Anyone holding the bank index alone instead of the broad one has been through that spread, not the average.
Gaps changed sign often. After the −17.7 gap in 2020 came −10.6 in 2021 and then +16.8 in 2022. Ten periods are too few to say whether a big gap tends to reverse.
2026 so far is a small lead inside a large fall. Both are down for the year: the Nifty 50 by 11.4% and Nifty Bank by 6.3%. Bank stocks have held up better in the decline, by 5.1 points.
Costs and index funds
If you want exposure to either index through a fund, the cost is the main difference between versions. Our comparison of Nifty Bank index funds shows the expense ratios and tracking of the funds that follow it, and the Nifty 50 index funds post does the same for the broad index. The price-to-book post shows where the bank index's valuation stands today.
Reading the comparison
- A sector index can lead for years and then trail for years. Six leads in ten is not a rule.
- The two indices overlap heavily, so Nifty Bank is not diversification away from the Nifty 50; it is more of the same sector.
- These are price returns. Banks pay dividends, so total returns for both are higher than shown.
- None of this is a recommendation to buy or sell either index or any fund tracking it.
Source: NSE Nifty 50 and Nifty Bank daily closes, 30 December 2016 to 16 October 2026, as held on WealthTicker; price indices, calendar-year returns, 2026 to 16 October.
Frequently asked questions
Has Nifty Bank beaten the Nifty 50 over the long run?
Slightly. From 30 December 2016 to 16 October 2026 Nifty Bank rose 3.07 times (12.1% a year) and the Nifty 50 rose 2.83 times (11.2% a year), both on price indices without dividends. The lead came from a few years, not a steady margin.
In which years did Nifty Bank lag the Nifty 50?
In 2020 (−2.8% against +14.9%), 2021 (+13.5% against +24.1%), 2023 (+12.3% against +20.0%) and 2024 (+5.3% against +8.8%).
Is the Nifty 50 already a bank-heavy index?
Financial companies carry a large weight in the Nifty 50, so the two indices share much of their movement. That is why the gaps between them are measured in points of difference and the direction usually matches.
This is commentary on published data, not investment advice. WealthTicker is not a SEBI-registered adviser or distributor. Figures are WealthTicker’s own calculations from public data — AMFI’s fund NAVs and disclosures, NSE’s index and FII/DII files, and the fund houses’ monthly portfolios (how we calculate). They are as of the dates stated and can be revised by their source.
Keep reading
Nifty Energy vs Nifty Metal: eleven years of swings
Nifty Energy beat Nifty Metal in 6 of 14 periods since 2013: 11.6% a year against 10.9%. Every year compared, plus valuations today.
Nifty FMCG vs Nifty Auto: the yearly scorecard since 2013
Nifty FMCG beat Nifty Auto in 6 of 14 periods since 2013: 8.1% a year against 12.9%. Every year compared, plus valuations today.
Nifty IT vs Nifty Pharma: who won each year since 2013
Nifty IT beat Nifty Pharma in 6 of 14 periods since 2013: 12.9% a year against 11.1%. Every year compared, plus valuations today.