AUTHOR: Arnav Anand Joshi
INTRODUCTION:
Axis Bank Limited is a multinational banking and financial services company in India. Here are some details about Axis Bank.
Axis Bank is the third largest private sector bank in India. The Bank offers the entire spectrum of financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses.
OBJECTIVES: To find beta and significance of Axis Bank.
DATA COLLECTION
Data was collected from NSE site for the period of 1.5.23 to 30.4.24. The data was manipulated to find Friday closing prices. Weekly returns of Nifty 50 and Axis Bank were calculated. Weekly return of Axis Bank was assumed as Y, and weekly returns of nifty was assumed as X. weekly return of Axis Bank was regressed on weekly returns of nifty 50.
DATA ANALYSIS
P-value=0.01
Observations=48
T stat=-2.05
F=6.59
R Square=0.12
y = -0.1459x – 0.3704
Analysis:
The above equation shows relationship between nifty and axis bank.
Negative sign before the coefficient of nifty 50 tells is that their inverse relationship between nifty and axis bank, vice versa. ( -0.37)
If nifty rises Axis Bank will fall, if Axis Bank rises nifty will fall.
R Square is 0.12 Explains that 12% of companies returns are explained by nifty 50 .
Balance 88% may be due to fundamentals.
Since F =6.59and P value is 0.01 meaning the overall model statistically significant.
CONCLUSION:
Since Beta value is -0.14, which is negative so no need to invest in Axis bank.