Investigating the link between Cipla stock performance and nifty-fifty index

Abstract

Background: The correlation between Axis Bank stock performance and the Nifty Fifty and Nifty Bank indices is analyzed.Objective: These observations were taken to see the relationship that exists for the last five years between the prices of these two indices with Axis Bank's stocks.Materials and Methods: Data for this were derived from the NSE website from 1st April 2020 to 14th November 2024. An analysis was conducted using Spearman's Rank Correlation and descriptive statistics.Results: Strong positive correlations between Axis Bank and Nifty Fifty with a correlation coefficient of 0.968 and Nifty Bank with a correlation coefficient of 0.978 with associated p-values < 0.001.Findings: Axis Bank's stock performance is significantly correlated with both broader market trends and sector-specific developments.Conclusion: Monitoring of both indices is recommended to devise an investment strategy in Axis Bank.