{"id":18423,"date":"2023-08-24T19:54:59","date_gmt":"2023-08-24T14:24:59","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=18423"},"modified":"2023-08-24T19:54:59","modified_gmt":"2023-08-24T14:24:59","slug":"relationship-of-hdfc-bank-ltd-with-nifty-50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=18423","title":{"rendered":"Relationship of HDFC Bank LTD with Nifty 50"},"content":{"rendered":"

Title: – Relationship of HDFC Bank LTD with Nifty 50<\/strong><\/p>\n

Author: – Harsha Pravin Vavekar (MMS First Year, Roll no. 0222124)<\/strong><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0Kohinoor Business School, Kurla.<\/strong><\/p>\n

Introduction :<\/strong>The Housing Development Finance Corporation Limited or HDFC Ltd was among the first financial institutions in India to receive an \u201cin principle\u201d approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. This was done as part of RBI\u2019s policy for liberalization of the Indian banking industry in 1994.
HDFC Bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its registered office in Mumbai, India. The bank commenced operations as a Scheduled Commercial Bank in January 1995.<\/p>\n

On April 4, 2022 the merger of India\u2019s largest Housing Finance Company, HDFC Limited and the largest private sector bank in India, HDFC Bank was announced. HDFC Ltd, over the last 45 years has developed one of the best product offerings making it a leader in the housing finance business.<\/p>\n

HDFC Bank enables seamless delivery of home loans as a part of its wide product suite catering to urban, semi urban and rural India.<\/p>\n

<\/strong><\/p>\n

\u00a0<\/strong><\/p>\n

Objective: – To Calculate the Beta of HDFC Bank LTD and find out its significance.<\/strong><\/p>\n

Views and Reviews: -HDFC Bank Managing Director and CEO Sashidhar Jagdishan\u00a0 <\/strong>said the future is bright and the work on realising the potential of the merger starts now.\u00a0\u00a0\u00a0\u00a0\u00a0 “The runway for financial services and mortgages, which are so underserved and under-penetrated, is going to be very large. HDFC Bank, the combined entity, with a large and growing distribution and customer franchise, more than adequate capital, healthy asset quality, and profitability, will be best positioned to capture growth. At the pace at which we aim to grow, we could be creating a new HDFC Bank every 4 years,” he said.<\/p>\n

Atanu Chakraborty Part-time Chairman and Independent Director<\/strong> commented \u201cI would like to say that we stand at the cusp of a new era which will define our future; a future in which I have full confidence of demonstrating growth, stability and serving our burgeoning pan India customer base even better\u201d<\/p>\n

\u00a0<\/strong><\/p>\n

Data Collections: – <\/strong>Data is taken from 01-06-2022 to 31-07-2023. It has been downloaded from the NSE site, then Friday’s closing price was sorted and weekly returns of Nifty (i.e. X) and HDFC Bank LTD\u00a0 (i.e. Y) were calculated.<\/p>\n

\u00a0<\/p>\n

Data Analysis: –<\/strong> Equation\u00a0 \u201c^Y= 0.1020+0.9378 (X)\u201d\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0\u00a0 \u00a0 \u00a0 \u00a0 \u00a0(tstat <\/sub>= 5.734)<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/strong>n = 50,\u00a0\u00a0 R2 <\/sup>=0.4065,\u00a0\u00a0 F = 32.8821<\/p>\n

\u00a0<\/p>\n

The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of HDFC Bank LTD. (y) the positive sign means a positive relationship meaning if \u201cx\u201d rises \u201cy\u201d rises and vice versa. If \u201cx\u201d rises by 1 unit, \u201cy\u201d rises by\u00a0 0.9378, \u201cn\u201d means there are 50 observations. The figure in bracket is plus stat for B,\u00a0 The t-stat for b is 5.734, which means b is statistically significant at 5% level. R2<\/sup> is 0.4065 means 40.65% of y is explained by x, balance 59.35% is error due to the variables which are not in model.\u00a0 As the calculated value of F =32.8821 is more than the tabulated F (F 0.05,1DF,49DF) = 4.043, the overall model is statistically significant at the 5% level.<\/p>\n

So overall the model is statistically significant at the 5% level.<\/p>\n

Conclusion:<\/strong><\/p>\n

As Beta is 0.0000006 which is less than 1, the share is good for long term.\u00a0\u00a0<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n\n\n\n
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Title: – Relationship of HDFC Bank LTD with Nifty 50 Author: – Harsha Pravin Vavekar (MMS First Year, Roll no. 0222124) \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0Kohinoor Business School, Kurla. Introduction :The Housing Development Finance Corporation Limited or HDFC Ltd was among the first financial institutions in India to receive an \u201cin principle\u201d approval from the Reserve Bank… Continue reading Relationship of HDFC Bank LTD with Nifty 50<\/span><\/a><\/p>\n","protected":false},"author":138737,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-18423","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\/18423","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\/138737"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18423"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/18423\/revisions"}],"predecessor-version":[{"id":18424,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/18423\/revisions\/18424"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18423"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}