Title:- Relationship of State Bank of India with Nifty50
Author:- Saira Shaikh

Introduction:
The State Bank of India (SBI) is an Indian multinational, public sector banking and financial services statutory body. It is a government corporation statutory body headquartered in Mumbai, Maharashtra. SBI is ranked as 236th in the Fortune Global 500 list of the world’s biggest corporations of 2019. It is the largest bank in India with a 23% market share in assets, besides a share of one-fourth of the total loan and deposits market. State Bank of India (SBI) is the country’s largest commercial bank, in terms of assets, deposits, and employees. Owned by the Indian government, it offers a range of general banking services from loans and advances to corporates and individuals in India and abroad.
SBI caters to the needs of both the government, central as well as the state. On behalf of the government, it receives the money and deposits it. It collects the charges on behalf of government like tax collection and other payments. It also grants advances and loans to the government.

Objective:
To Calculate β for State Bank of India and observe its significance.

Data Collection:
The data was downloaded from NSE for the period starting from 1st February 2019 to 31st March 2020 for NIFTY5050 and Friday Closing Prices of State Bank of India were found out. The weekly return of NIFTY5050 and weekly return of State Bank of India was found out.
The weekly return of NIFTY5050 was named as ‘X’ and weekly return of State Bank of India was named as ‘Y’.

Data Analysis:
The following values were obtained using the Regression Add-on in Microsoft Excel Data Analytics instrument.

Y^ = 0.202529257 – -0.930007319
(-2.55353)
N = 52
R2 = 0.11536551
F = 6.520518451

P-value = 0.013759966

Conclusion:
The equation above informs us the connection between State Bank of India weekly yields and Nifty’s weekly returns. State Bank of India will drop by one unit if Nifty increases by one unit and vice versa
Figure in the bracket is t Stat for which b is a coefficient of × is called β
The P – value which is less than 0.05 which means b is statistically significant at 5% significance level.
R2 = 0.11536551 which means 11% of Weekly return of State Bank of India can be explained by NIFTY50 weekly returns, remaining 89% is dependent upon State Bank of India.
F is 6.520518451, the P-value for which is less than 0.05 which means this model is statistically significant at 5% level.

Name: Saira Shaikh
MBA MARKETING
Roll No: 011804