Author- Himani Jaiswal
Introduction-
HDFC Bank Limited is an Indian banking and financial services company headquartered in Mumbai. It is India’s largest private sector bank by assets and world’s 10th largest bank by market capitalization as of April 2021. It is the third largest company by market capitalization of $122.50 billion on the Indian stock exchanges. It is also the fifteenth largest employer in India with nearly 120,000 employees. HDFC Bank was incorporated in 1994 as a subsidiary of the Housing Development Finance Corporation, with its registered office in Mumbai, Maharashtra, India. Its first corporate office and a full-service branch at Sandoz House, Worli were inaugurated by the then Union Finance Minister, Singh. As of 30 June 2019, the bank’s distribution network was at 5,500 branches across 2,764 cities. It has installed 430,000 POS terminals and issued 23,570,000 debit cards and 12 million credit cards in FY 2017. It has a base of 1,16,971 permanent employees as of 21 March 2020.
Objectives-
Relationship of HDFC BANK with Nifty Fifty
To calculate Beta of HDFC BANK and see its significance.
Data Collection-
Closing Friday Price were calculated by:
Data for this company (HDFC BANK) has collected from NSE. Date and closing prices of HDFC BANK has been downloaded from nseindia.com (Indices and Equity – Historical Data)
Friday closing prices were calculated in week-returns
Indices is taken as (X) and Equity is taken by (Y)
Insert one column in between the Date and close price column and write the formula for number (Weekday,2) then sort by A to Z and only take Friday values and insert the weekly return column with formula (C3-C2)/C2*100
Then put the regression from data analysis we will get the values of HDFC BANK
Data Analysis-
Regression Statistics
Multiple R 0.666896405
R Square 44%
Adjusted R Square 0.431530597
Standard Error 48.74674238
Observations 44
ANOVA
df SS MS F Significance F
Regression 1 79940.95108 79940.951 33.641714 7.70E-07
Residual 42 99802.28551 2376.2449
Total 43 179743.2366
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 718.508 117.85 6.1 2.88E-07 480.7 956.3 480.68 956.34
14518 0.041269 0.0071 5.8 7.70E-07 0.027 0.056 0.0269 0.0556
Y= a + bx
A=718.508
B= 0.041269
Y= 718.508-0.041269 X
T stat= 5.8
Since P value is more than 0.05 the model is not significant @ 5%
The above equation shows the relationship between price and demand. If the price rises demand falls by.