BFSI weight in Nifty 50 rebounds to 3-year high amid sector rotation

Market analysts attribute the BFSI sector's outperformance, particularly among banks, to technical factors such as sector rotation by institutional investors, rather than superior financial results

The banking, financial services and insurance (BFSI) sector has moved back into focus for investors this calendar year, after lagging the broader market for two consecutive years. BFSI stocks have outperformed benchmark indices in 2025 so far, driving a steady rise in the sector’s weighting within the Nifty 50 index. 

The BFSI sector’s weighting in the index has climbed to 35.4 per cent, up from 33.4 per cent at the end of December 2024 and 34.5 per cent at the end of December 2023. At the end of 2022, the value was 36.7 per cent. 

Furthermore, the sector’s current weighting