Relationship between Nifty 50 and Kotak Mahindra Bank Limited<\/p>\n
Author: Kalpesh Ghanshyam Sonawane \u2013 0225049<\/p>\n
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Introduction:<\/p>\n
Kotak Mahindra Bank Limited is one of India\u2019s leading private sector banks, offering a wide range of financial services including retail banking, corporate banking, investment banking, and wealth management. Established in 1985 and headquartered in Mumbai, the bank has built a strong reputation for innovation, customer service, and financial stability.<\/p>\n
Kotak Mahindra Bank is a constituent of the Nifty 50 index and plays a significant role in the Indian banking sector. Its stock performance is influenced by various macroeconomic factors and overall market movements. This report analyses Kotak Mahindra Bank\u2019s stock performance and its sensitivity to the Nifty 50 index.<\/p>\n
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Objective:<\/p>\n
To calculate Beta and observe its significance.<\/p>\n
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Literature Review:<\/p>\n
1. Banking Sector and Market Sensitivity<\/p>\n
(Sharma et al., 2023) analysed banking sector stocks and found that they are highly influenced by market conditions, interest rates, and economic growth. Banking stocks generally show a strong relationship with benchmark indices like Nifty 50.<\/p>\n
2. Risk-Return Behaviour of Banking Stocks<\/p>\n
(IJRAR, 2025) concluded that private sector banks like Kotak Mahindra Bank exhibit moderate beta values, indicating balanced risk and return. These stocks are suitable for investors seeking steady growth with moderate risk.<\/p>\n
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Data Collection:<\/p>\n
Data for Nifty 50 and Kotak Mahindra Bank Ltd was collected from nseindia.com for the period 1\/1\/2025 to 31\/12\/2025. Friday closing prices were considered for both Nifty 50 and Kotak Mahindra Bank Ltd.<\/p>\n
Weekly returns of Nifty 50 were taken as X (independent variable) and weekly returns of Kotak Mahindra Bank Ltd were taken as Y (dependent variable). Regression analysis was applied where Y was regressed on X.<\/p>\n
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Data Analysis:<\/p>\n
Regression Equation:<\/p>\n
\ud83d\udc49 y = 0.22 + 0.85x<\/p>\n
Particular<\/p>\n
Value<\/p>\n
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Observations (N)<\/p>\n
48<\/p>\n
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R Square<\/p>\n
0.27<\/p>\n
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F Value<\/p>\n
17.14<\/p>\n
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P-value<\/p>\n
0.00<\/p>\n
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t-stat<\/p>\n
4.14<\/p>\n
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Beta (B)<\/p>\n
0.85<\/p>\n
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Interpretation:<\/p>\n
The above Equation shows the relationship between Nifty 50 and Kotak Mahindra Bank Ltd. Positive means their Direct relation which means if Nifty 50 stock rises Kotak Mahindra Bank Ltd stock rise and vice versa. If Nifty 50 stock increases by 1 unit, the Kotak Mahindra Bank Ltd stock increases by 0.85 unit. Number of observations is 48. t-stat for beta 4.14. The P value is 0.00 less than 0.05 meaning Beta is statistically significant at 5% level. No. of observations are 48. R square is 0.27 meaning 27% is the error due to the variable not included in model. F is 17.14 and P value of which 0.00 less than 0.05 meaning Beta is statistically significant at 5% level.<\/p>\n
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Conclusion:<\/p>\n
B<1, Hence invest for long term.<\/p>\n
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References:<\/p>\n
Sharma, R., Mehta, A., & Gupta, S. (2023). Analysis of banking sector stocks in India. Journal of Financial Studies, 14(2), 45\u201352.<\/p>\n
IJRAR. (2025). A study on performance evaluation of banking sector stocks listed on NSE. International Journal of Research and Analytical Reviews, 12(3), 1\u20135.<\/p>\n","protected":false},"excerpt":{"rendered":"
Relationship between Nifty 50 and Kotak Mahindra Bank Limited Author: Kalpesh Ghanshyam Sonawane \u2013 0225049 \u00a0 Introduction: Kotak Mahindra Bank Limited is one of India\u2019s leading private sector banks, offering a wide range of financial services including retail banking, corporate banking, investment banking, and wealth management. Established in 1985 and headquartered in Mumbai, the bank… Continue reading Relationship between Nifty 50 and Kotak Mahindra Bank Limited<\/span><\/a><\/p>\n","protected":false},"author":140208,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-25108","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\/25108","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\/140208"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25108"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/25108\/revisions"}],"predecessor-version":[{"id":25109,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/25108\/revisions\/25109"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25108"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25108"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25108"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}