{"id":20512,"date":"2024-03-17T07:58:55","date_gmt":"2024-03-17T02:28:55","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=20512"},"modified":"2024-03-17T07:58:55","modified_gmt":"2024-03-17T02:28:55","slug":"relationship-between-nifty50-kotak-mahindra-bank-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=20512","title":{"rendered":"Relationship between Nifty50 & Kotak Mahindra Bank Limited."},"content":{"rendered":"

TITLE:<\/b><\/strong>\u00a0 Relationship between Nifty50 & Kotak Mahindra Bank Limited.<\/p>\n

AUTHOR:<\/b><\/strong>\u00a0Kalpana Baban Yedage<\/p>\n

INTRODUCTION:<\/b><\/strong>\u00a0Kotak Mahindra Bank is a leading financial institution in India, known for rapid growth and strong reputation. It offers a wide range of services, including transaction banking, lending, IPO \u00a0management\u00a0& working capital loans. The bank\u2019s activities span consumer, commercial, and corporate banking, along with treasury and various financial services. With subsidiaries, it provides comprehensive financial solutions, covering commercial banking, investment banking, stock broking, vehicle finance, advisory services, asset and life insurance. The bank caters to the diverse needs of individuals and non-individual customers through advanced technology platforms, offering products like Mutual Funds, Life Insurance, and gold retailing. Additionally, Kotak Mahindra Bank serves Non-Resident Indians (NRIs) through strategic partnerships and has overseas subsidiaries in key global\u00a0locations.<\/p>\n

\u00a0<\/p>\n

OBJECTIVE:<\/b><\/strong>\u00a0Calculate Beta of Kotak Mahindra Bank\u00a0Ltd & it\u2019s significance.<\/p>\n

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LITERATURE REVIEW:<\/b><\/strong><\/p>\n

    \n
  1. Sreedhar, V. (2023) Highlights the \u00a0After the mayhem in the March quarter, domestic equities rebounded sharply in the quarter ended June, and this saw foreign portfolio investors raising their holding in 37 out of the 50 companies on Nifty50. After shedding 4% in the March quarter and testing the lowest level since September 2022, the benchmark Nifty50 rebounded sharply and surged more than 10% in the June quarter. In fact, from the March lows, the index is up about 19%, thanks to the continued inflows from FPIs. FPIs increased stake across banking stocks in Nifty50 in the quarter gone by, a sector that enjoys the highest weightage in the index. After Axis Bank, Kotak Mahindra Bank saw a sharp increase in FII holding to 39.89% from 37.76%.Information technology sector, which has the second highest weightage in Nifty 50, was least preferred by FIIs as concerns over growth slowdown in developed economies clouded business outlook. Of the six IT stocks that are part of the Nifty 50, FIIs reduced their holding in four of them. Infosys saw the maximum selling, as FII reduced their stake by a whopping 165 bps to 33.44%. In Tech Mahindra, their stake came down by 118 bps to 25.69%.<\/li>\n<\/ol>\n

    \u00a0<\/p>\n

    2.\u00a0 Kumar, S. (2023) states that the Kotak Mahindra Bank\u00a0 \u00a0 \u00a0 \u00a0shares soared nearly 6% on Tuesday after the reduction\u00a0 \u00a0 \u00a0 \u00a0of FII stake in the private lender raised expectations of\u00a0 \u00a0 \u00a0 \u00a0 $690 million inflows.The action in Kotak Bank stock\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 was high with over 36.8 lakh shares changing hands\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 around this time. The stock has corrected from its 52-\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 week high of Rs 1.997.55 which it hit in November\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 2022.\u00a0 \u00a0It has marginally outperformed the Nifty50\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0index, giving returns of over 2% over a 12-month period\u00a0 \u00a0 \u00a0as against a 0.3% gain seen in Nifty50, according to\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Trendline data.The foreign headroom is just above the\u00a0 \u00a0 \u00a0 \u00a0 \u00a0required threshold of 25% and now could result in a\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0change of adjustment factor to 1 from 0.50 currently,\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Nuwama said, adding that if its shareholding\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0calculations hold true and MSCI considers 41.22% as\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 current foreign holding then Kotak Mahindra Bank\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 (KMB) could see weight-up led inflow to the tune of\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0$690\u00a0 million which is almost 32 million shares buying\u00a0 \u00a0 \u00a0 \u00a0(7-day average traded volume).<\/p>\n

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    DATA COLLECTION:<\/b><\/strong><\/p>\n

    The data for Nifty 50 and Kotak Mahindra Bank\u00a0Ltd has been downloaded from the NSE website for the period of 01 February,\u00a02023 to 31 January,\u00a02024. The data has been manipulated to obtain the Friday closing prices of Nifty 50 and\u00a0Kotak Mahindra Bank\u00a0Ltd. The weekly returns of the NSE index Nifty\u00a050 are represented by X, while the returns of equity for Kotak Mahindra Bank\u00a0Ltd are represented by Y. Wherein Y (Equity of Kotak Mahindra Bank\u00a0Ltd) is Regressed on X (Nifty 50), and the relationship between the two has been plotted.<\/p>\n

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    DATA <\/b><\/strong>\u00a0<\/b><\/strong>ANALYSIS:<\/b><\/strong><\/p>\n

    The equation for the data is-<\/p>\n

    Y=\u00a00.265099755+-0.549871287X<\/p>\n

    N= 50<\/p>\n

    R Square= 0.098534485<\/p>\n

    t Stat= 0.757106788<\/p>\n

    F= 5.246629172<\/p>\n

    \u00a0<\/p>\n

    INTERPRETATION:<\/b><\/strong><\/p>\n