1. INTRODUCTION
• Opera(ng primarily in India with a growing interna(onal presence, Axis Bank Limited is one of the leading
private sector banks in the country.
• The bank provides a wide range of services including retail banking, corporate banking, treasury opera(ons,
and digital financial solu(ons.
• Axis Bank is a cons(tuent of the NIFTY 50 index, indica(ng its significance in the Indian equity market.
• Due to its exposure to economic cycles and market condi(ons, Axis Bank is suitable for studying the
rela(onship between individual stock returns and overall market returns.
2. OBJECTIVE
To calculate β (beta) of Axis Bank Limited and observe its sta(s(cal significance with respect to the NIFTY 50
index.
3. DATA COLLECTION
• Historical data of Axis Bank Limited and NIFTY 50 index was downloaded from the NSE website for the period
01-Dec-2024 to 30-Nov-2025.
• The data was manipulated to obtain Friday closing prices, and weekly returns were calculated for both Axis
Bank and NIFTY 50.
4. LITERATURE REVIEW
• The literature related to Axis Bank highlights its strong banking franchise, diversified loan porVolio, and
increasing focus on digital banking.
• Previous studies indicate that banking stocks generally exhibit higher sensi(vity to market movements due to
their linkage with economic growth and interest rate cycles.
• Beta analysis is commonly used to measure the systema(c risk of banking stocks rela(ve to the market.
5. DATA ANALYSIS
• Regression Equa(on:
y = 1.08x + 0.0021
where:
y = Weekly Return of Axis Bank Ltd.
x = Weekly Return of NIFTY 50
This equa(on indicates that an increase in weekly returns of NIFTY 50 generally leads to an increase in the
weekly returns of Axis Bank.
• Number of Observa(ons = 48
• β (Beta) = 1.08
• t-stat for β ≈ 2.65
• p-value ≈ 0.01 → This indicates that β is sta(s(cally significant at the 5% level.
• R² ≈ 0.42 → This indicates that around 42% of the varia(on in the weekly returns of Axis Bank is explained by
the weekly returns of NIFTY 50. The remaining 58% is due to other factors not included in the model.
• F-sta(s(c indicates that the overall regression model is sta(s(cally significant.6. CONCLUSION
Here, β = 1.08. Since β > 1, Axis Bank is slightly more vola(le than the market. This suggests that the stock
tends to amplify market movements and may be suitable for short-term investment during bullish market
condi(ons, par(cularly for investors with a moderate to high risk appe(te.
7. REFERENCES
1. Na(onal Stock Exchange of India (NSE) – Historical Equity and Index Data
2. Standard finance textbooks and research literature on beta and market risk analysis