RESEARCH TITLE-Relationship of Kotak Mahindra Bank ltd with Nifty 50.
Author- Kritika Sameer Pradhan
Introduction-Kotak Mahindra Bank Limited is an Indian banking and financial services company headquartered in Mumbai. It offers a variety of banking products and financial services, including high-interest savings accounts, personal loans, and credit cards with attractive offers. Established as one of India’s leading private sector banks, it has a strong financial performance and strategic acquisitions.
Objective: To find out Beta of Kotak Mahindra bank ltd and its significance.
Data Collection: Data of Kotak Mahindra bank ltd and Nifty 50 for the period from 1.06.2023 to 30.05.2024 is taken from NSE website. Data was manipulated to find out Friday closing prices and weekly returns for both Nifty 50 and Kotak and named as X Y respectively and after calculation ,Y was regressed on X.
Data Analysis: WEEKLY RETURN OF KOTAK MAHINDRA BANK LTD=
-0.58+0.76weekly return of Nifty(2.65)
- N=48,
- R square=0.13
- F=7.02
- P value=0.0109
Interpretation:
- The above equation shows the relationship between weekly returns of Nifty 50 and Kotak Mahindra Bank ltd. The positive sign before co-efficient of weekly return of Nifty means there is positive relationship if Nifty raises by 1 unit Kotak raises by 0.76 unit and vice-versa.
- t- stat for Beta 2.65 and P-value 0.0109 is less than 0.05 meaning beta is statistically significant at 5% level.
- N = 48 (Number of observation)
- R- Square = 13 means 13 % of weekly return of Kotak Mahindra Bank ltd are explained by Nifty.
- F = 02 and P-value = 0.0109 meaning overall the model is statistically significant @ 5% level.
Conclusion: As my beta is more than 1 so I can invest for short term.