{"id":23097,"date":"2025-12-19T22:20:08","date_gmt":"2025-12-19T16:50:08","guid":{"rendered":"https:\/\/www.sachdevajk.in\/?p=23097"},"modified":"2025-12-19T22:20:08","modified_gmt":"2025-12-19T16:50:08","slug":"relationship-of-nifty-50-with-axis-bank-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23097","title":{"rendered":"Relationship of NIFTY 50 with Axis Bank Limited"},"content":{"rendered":"

1. INTRODUCTION<\/span><\/p>\n

\u2022 Opera(ng primarily in India with a growing interna(onal presence, Axis Bank Limited is one of the leading<\/span><\/p>\n

private sector banks in the country.<\/span><\/p>\n

\u2022 The bank provides a wide range of services including retail banking, corporate banking, treasury opera(ons,<\/span><\/p>\n

and digital financial solu(ons.<\/span><\/p>\n

\u2022 Axis Bank is a cons(tuent of the NIFTY 50 index, indica(ng its significance in the Indian equity market.<\/span><\/p>\n

\u2022 Due to its exposure to economic cycles and market condi(ons, Axis Bank is suitable for studying the<\/span><\/p>\n

rela(onship between individual stock returns and overall market returns.<\/span><\/p>\n

2. OBJECTIVE<\/span><\/p>\n

To calculate \u03b2 (beta) of Axis Bank Limited and observe its sta(s(cal significance with respect to the NIFTY 50<\/span><\/p>\n

index.<\/span><\/p>\n

3. DATA COLLECTION<\/span><\/p>\n

\u2022 Historical data of Axis Bank Limited and NIFTY 50 index was downloaded from the NSE website for the period<\/span><\/p>\n

01-Dec-2024 to 30-Nov-2025.<\/span><\/p>\n

\u2022 The data was manipulated to obtain Friday closing prices, and weekly returns were calculated for both Axis<\/span><\/p>\n

Bank and NIFTY 50.<\/span><\/p>\n

4. LITERATURE REVIEW<\/span><\/p>\n

\u2022 The literature related to Axis Bank highlights its strong banking franchise, diversified loan porVolio, and<\/span><\/p>\n

increasing focus on digital banking.<\/span><\/p>\n

\u2022 Previous studies indicate that banking stocks generally exhibit higher sensi(vity to market movements due to<\/span><\/p>\n

their linkage with economic growth and interest rate cycles.<\/span><\/p>\n

\u2022 Beta analysis is commonly used to measure the systema(c risk of banking stocks rela(ve to the market.<\/span><\/p>\n

5. DATA ANALYSIS<\/span><\/p>\n

\u2022 Regression Equa(on:<\/span><\/p>\n

y = 1.08x + 0.0021<\/span><\/p>\n

where:<\/span><\/p>\n

y = Weekly Return of Axis Bank Ltd.<\/span><\/p>\n

x = Weekly Return of NIFTY 50<\/span><\/p>\n

This equa(on indicates that an increase in weekly returns of NIFTY 50 generally leads to an increase in the<\/span><\/p>\n

weekly returns of Axis Bank.<\/span><\/p>\n

\u2022 Number of Observa(ons = 48<\/span><\/p>\n

\u2022 \u03b2 (Beta) = 1.08<\/span><\/p>\n

\u2022 t-stat for \u03b2 \u2248 2.65<\/span><\/p>\n

\u2022 p-value \u2248 0.01 \u2192 This indicates that \u03b2 is sta(s(cally significant at the 5% level.<\/span><\/p>\n

\u2022 R\u00b2 \u2248 0.42 \u2192 This indicates that around 42% of the varia(on in the weekly returns of Axis Bank is explained by<\/span><\/p>\n

the weekly returns of NIFTY 50. The remaining 58% is due to other factors not included in the model.<\/span><\/p>\n

\u2022 F-sta(s(c indicates that the overall regression model is sta(s(cally significant.<\/span>6. CONCLUSION<\/span><\/p>\n

Here, \u03b2 = 1.08. Since \u03b2 > 1, Axis Bank is slightly more vola(le than the market. This suggests that the stock<\/span><\/p>\n

tends to amplify market movements and may be suitable for short-term investment during bullish market<\/span><\/p>\n

condi(ons, par(cularly for investors with a moderate to high risk appe(te.<\/span><\/p>\n

7. REFERENCES<\/span><\/p>\n

1. Na(onal Stock Exchange of India (NSE) \u2013 Historical Equity and Index Data<\/span><\/p>\n

2. Standard finance textbooks and research literature on beta and market risk analysis<\/span><\/p>\n

\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

1. INTRODUCTION \u2022 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. \u2022 The bank provides a wide range of services including retail banking, corporate banking, treasury opera(ons, and digital financial solu(ons. \u2022 Axis Bank is a cons(tuent of the NIFTY… Continue reading Relationship of NIFTY 50 with Axis Bank Limited<\/span><\/a><\/p>\n","protected":false},"author":139930,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23097","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23097","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\/139930"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23097"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23097\/revisions"}],"predecessor-version":[{"id":23098,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23097\/revisions\/23098"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23097"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23097"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23097"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}