Banks, NBFCs stocks lose sheen in Nifty amid coronavirus outbreak

Amid FII sell-off, contribution of financials to the index dips to 37.8%

After being the most preferred in the Indian equity indices for over half a decade, things might be about to change for stocks in the financial sector. Comprised of banks and non-banking financial companies (NBFCs), the share of financials in the bellwether CNX Nifty has dipped from 40.1 per cent at its peak on February 19, 2020, to 37.8 per cent on Thursday.

This marks the first major decline in weights of financials in the index in the last five years, and the reduction might be directly correlated to the massive sell-off that has intensified in the past three weeks.