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Everything You Need To Know About Financial Sector Stocks In India

This blog will walk you through the financial sector in India, segments that comprise the finance sector, top financial companies, and historical sector performance.
April 10, 2021

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The financial sector in India comprises diverse entities & services, including commercial banks, insurance companies, non-banking financial companies (NBFCs), co-operatives, pension funds, etc.

In the past few years, the reach of technology and accessibility of financial services has increased rapidly. As a result, investors are now more aware of financial assets & services. 

This has led to more investments in equity markets and securities; thus strengthening the Indian financial sector. In this blog, we walk you through some key facts and data of the financial sector.

Important: This blog is meant to educate readers and the information furnished here is not to be construed as investment advice from Cube Wealth. Please consult a wealth coach or financial advisor before investing in any asset.

What Is The Financial Sector?

The financial sector in India predominantly comprises banking and insurance. For the past 5 years, CDSL, Bajaj Finance and L&T Finance Holdings have been the industry leaders in terms of sales and profit growth.

Financial services are also an important part of the sector. They include capital market services like broking, asset management, wealth management, etc. Top financial services offered in India are:

1. Banking

2. Professional Advisory

3. Wealth Management

4. Mutual Funds

5. Insurance

6. Stock Market

7. Treasury/Debt Instruments

8. Tax/Audit Consulting

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Top Financial Sector Stocks In India

Company

Ticker

Market Cap

Share Price

Bajaj Finserv

BAJAJFINSV

₹155,798.74 Cr

₹9,790.20

HDFC AMC

HDFCAMC

₹63,090.88 Cr

₹2,962.65

AB Capital

ABCAPITAL

₹29,345.63 Cr

₹121.50

Nippon

NAM-INDIA

₹21,198.52 Cr

₹343.85

Chola Fin Hold

CHOLAHLDNG

₹11,184.54 Cr

₹595.80

IIFL Finance

IIFL

₹ 11,086.77Cr

₹292.65

Important Note: All facts & figures mentioned in the tables above have been collated from publicly available sources. The companies mentioned in the tables are listed in no particular order and are a reflection of India’s most popular financial sector brands at the moment. Cube Wealth does not recommend purchasing stocks based on popularity alone and suggest you consult a Wealth Coach before putting your hard-earned money into any asset.

Past Trajectory Of Investment Returns In The Indian Financial Sector

Performance Of The Top Financial Sector Players In India

Company

Market Cap in mn

Return on Equity (5 yrs avg)

HDFC

₹4,366,663

17.30%

Bajaj Finance

₹3,170,901

17.90%

Shriram Transport

₹334,092

14.60%

LIC Housing

₹218,417

15.90%

M&M Financial Services

₹116,177

11.40%

Motilal Oswal

₹93,012

13.20%


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Conclusion

During the last 5 years, the AUM of the mutual fund industry in India has grown at a CAGR of 15.5%, and the equity AUM has grown at a CAGR of 17.3%. 

The sector consists of many subsegments, which may not see growth at the same rate and time. Hence, it is important to look at the opportunities and risks of specific segments/companies.

More importantly, it is advisable to consult a Cube Wealth Coach before investing as direct equity may not be everyone’s cup of tea. Investors interested in equity investments can explore options like:

Join Cube For Free to know more about the best investment options in India for 2021. 

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Bhavna Sharma
Bhavna is a Business Economics graduate with over 10 years of writing experience. She writes on a variety of topics for Cube Wealth and helps simplify investment-related concepts with both short & long-form content.

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