Introduction: Axis Bank is the third largest private sector bank in India offering an entire comprehensive spectrum of financial services to customer segments covering Large and Mid-Corporates, Micro, Small and Medium Enterprises (MSME), Agriculture and Retail Businesses.
\nObjectives: To calculate Beta of AXIS Bank and significance.
\nData Collection: Data of AXIS Bank from 01-101-2022 to 31-12-2022 from NSE website
\n\u2022\tFriday weekly closing prices has been found out
\n\u2022\tWeekly Return have been calculated with the formula of (Y2-Y1)\/Y1*100
\n\u2022\tWeekly Return of Equity have been regressed on Weekly Return of Nifty
\nData Analysis:
\nY = 0.5207+ 0.9686+ e
\n\u2022\tN = 50
\n\u2022\tR2 = 0.875348016812236
\n\u2022\tF = 337.072092496894
\n\u2022\tT-stat = 18.3595232099555
\n\u2022\t The above equation tells us about the relationship between Weekly Return of Axis Bank and Weekly Return of Nifty. The negative sign means that there is an indirect relationship. If nifty rises, equity falls and if nifty falls, equity rises. The co-efficient of weekly return of nifty is 0.5207, which means if nifty rises by 1 unit, Axis Bank equity will fall by 0.9686 units and vice versa.
\n\u2022\tNumber of Observations are 50 and t-stat is 0.6890.
\n\u2022\tP value is 0.4941, which is less than 0.05, means that b is statistically insignificant at 5%. Even it is more than 0.01, b is statistically insignificant at 1% level.
\n\u2022\tR2 is 0.8753,which means that 0.737% of Y (Axis Bank) is explained by X (nifty), balance of 99.3% is error. Error is due to the variables which are not in the model.
\n\u2022\tF is 337.0720, the P value for which is 0.49412169 > 0.01, means overall the model is statistically insignificant.
\nConclusion
\nSince b = 0.49412169
\n is less than 1, it is statistically insignificant.
\nAxis Bank is a not good option for investment because for every increase in nifty there will a decrease in the equity of Axis Bank<\/p>\n","protected":false},"excerpt":{"rendered":"
Introduction: Axis Bank is the third largest private sector bank in India offering an entire comprehensive spectrum of financial services to customer segments covering Large and Mid-Corporates, Micro, Small and Medium Enterprises (MSME), Agriculture and Retail Businesses. Objectives: To calculate Beta of AXIS Bank and significance. Data Collection: Data of AXIS Bank from 01-101-2022 to… Continue reading Calculation of Beta of AXIS Bank and its significance, Author- Ayushi Verma,Roll. No: 021230022117<\/span><\/a><\/p>\n","protected":false},"author":109589,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-17048","post","type-post","status-publish","format-standard","hentry","category-management","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/17048","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/users\/109589"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17048"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/17048\/revisions"}],"predecessor-version":[{"id":17066,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/17048\/revisions\/17066"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17048"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17048"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17048"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}