NIFTY PSU Bank is a specialised index that focuses on tracking the performance of public sector undertaking (PSU) banks listed on the National Stock Exchange (NSE) in India.

This index provides investors with a comprehensive view of how PSU banks are performing relative to each other and to the larger market. The index includes 12 major PSU banks like State Bank of India (SBI), Punjab National Bank (PNB), Bank of Baroda (BOB), and others.

The calculation of the NIFTY PSU Bank index follows a free float weighted average market capitalisation methodology. Market capitalisation reflects the total value of a company's outstanding shares, calculated by multiplying the current share price by the total number of shares outstanding.

The formula used is: NIFTY PSU Bank Index = (Sum of Market Capitalisation of Constituent Stocks) / (Base Market Capitalisation) × (Base Index Value). The index undergoes periodic rebalancing twice each year where adjustments are made to constituent stocks' weights based on their updated market capitalisation.

As an investor, you have several options to gain exposure to the NIFTY PSU Bank index. Exchange-traded funds (ETFs) and index funds that track the index's performance aim to replicate the index's returns by holding a portfolio of stocks similar to the index constituents.

Another option is through structured products or derivatives linked to the NIFTY PSU Bank index. It's essential to conduct thorough research and assess your risk tolerance before investing in any financial product linked to the NIFTY PSU Bank Index.