{"id":21459,"date":"2024-10-10T07:10:21","date_gmt":"2024-10-10T01:40:21","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=21459"},"modified":"2024-10-10T07:10:21","modified_gmt":"2024-10-10T01:40:21","slug":"relationship-of-axis-bank-with-nifty50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=21459","title":{"rendered":"Relationship of Axis Bank with Nifty50"},"content":{"rendered":"

Author:<\/span><\/span> Aniruddha Jagtap<\/span><\/span><\/p>\n

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Introduction<\/span><\/span>:<\/span><\/span> Axis Bank is one of India’s leading private sector banks, established in 1994. Headquartered in Mumbai, it offers a wide range of financial services to various customer segments, including retail, corporate, and agricultural clients.<\/span><\/span><\/p>\n

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Objective<\/span><\/span>: To find out Beta of <\/span><\/span>Axis Bank<\/span><\/span> and its significance<\/span><\/span>.<\/span><\/span><\/p>\n

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Data<\/span><\/span> Collection<\/span><\/span>: Data of <\/span><\/span>Axis Bank<\/span><\/span> and Nifty 50 was downloaded from 01\/05\/23 to 30\/04\/24 taken from NSE, then data is manipulated to get Friday closing prices. <\/span><\/span><\/p>\n

Weekly returns of Nifty 50 is taken as X and weekly return of <\/span><\/span>Axis Bank<\/span><\/span> is taken as Y, then weekly returns of both were calculated, Weekly return of Nestle was regressed on weekly returns of Nifty 50.<\/span><\/span><\/p>\n

Data analysis<\/span><\/span>:<\/span><\/span><\/p>\n

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Weekly return of Nestle = <\/span><\/span>(-0.39) <\/span><\/span>+ (-<\/span><\/span>0.46<\/span><\/span>) weekly return of Nifty 50 <\/span><\/span><\/p>\n

\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0(-0.<\/span><\/span>83<\/span><\/span>)<\/span><\/span><\/p>\n

\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0N = 4<\/span><\/span>8<\/span><\/span>, R square = 0.0<\/span><\/span>3<\/span><\/span>, F = <\/span><\/span>1.72<\/span><\/span>, P value = 0.<\/span><\/span>19<\/span><\/span> \u00a0 \u00a0 <\/span><\/span><\/p>\n

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Interpretation<\/span><\/span>:The above equation depicts the relationship between weekly returns of Axis Bank and weekly returns of Nifty 50.
The negative sign before the coefficient of Nifty 50 tells that if Nifty rises by 1 unit, axis bank will fall by 0.46unit and if nifty falls by 1 unit than axis bank wimm rise by 0.46. The figure in the bracket is t-stat for beta.The p value for which 0.19 which is more than 0.05 meaning beta is statistically not significant. \u00a0 \u00a0 \u00a0 \u00a0 <\/span><\/span>R square is 0.03 meaning 3% of company\u2019s return are explained by Nifty 50 the balance 97% may be due to fundamentals.
<\/span><\/span><\/p>\n

F is <\/span><\/span>1.72<\/span><\/span> & P value is 0.<\/span><\/span>1<\/span><\/span>9 meaning overall model is statistically insignificant. \u00a0 \u00a0 <\/span><\/span><\/p>\n

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Conclusion<\/span><\/span>:<\/span><\/span> As <\/span><\/span>Axis Bank\u2019s<\/span><\/span> beta is <\/span><\/span>-0.46<\/span><\/span> meaning it is negative, hence avoid to invest. \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Author: Aniruddha Jagtap \u00a0 Introduction: Axis Bank is one of India’s leading private sector banks, established in 1994. Headquartered in Mumbai, it offers a wide range of financial services to various customer segments, including retail, corporate, and agricultural clients. \u00a0 Objective: To find out Beta of Axis Bank and its significance. \u00a0 Data Collection: Data… Continue reading Relationship of Axis Bank with Nifty50<\/span><\/a><\/p>\n","protected":false},"author":139564,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-21459","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\/21459","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\/139564"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21459"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21459\/revisions"}],"predecessor-version":[{"id":21460,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21459\/revisions\/21460"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21459"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21459"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21459"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}