Relationship of Yes Bank with NIFTY 50 and to Calculate Beta
Author: Yukta Mahendra Mehta

To find the relationship between Yes Bank and NIFTY 50 and to calculate Beta of Yes Bank and see its significance.

Literature Review
1. Covid-19 fears persist, YES Bank share price declines by nearly 3.5% in last one week
The surge in Covid-19 cases across the country has muted the sentiment in the market, beginning this week. With a majority of shares declining, YES Bank followed suit and fell by over three and a half percent in the last week. Once a heavyweight, YES Bank, on Tuesday, dipped by over one percent to Rs 14.05 per share. The decline in the shares began from Monday when the benchmark indices, as well as broader markets, fell substantially amid the fear of rising coronavirus cases in India. Last week, YES Bank was trading around Rs 14.55 per share, aiming to break the resistance of Rs 17-18 per share level as experts predict. Market analysts say, “YES Bank shares too are going to be range-bound between Rs 13-14 per share, till it breaks the resistance.” Banking and financial stocks are the most affected after covid fears gripped the market. Moreover, Bank Nifty too, which was inching towards 32000 level, is now trading a little above the 31000 level. With Q4 results kicking in, YES Bank has informed the exchanges that the Board meeting of the company is scheduled on April 30. During which it will consider and approve the audited financial results of the bank for the quarter and year ended March 31,2021. Once YES Bank breaches the resistance level, experts predict the stock would show a new 52-week high going forward. But in order to happen so, it will require the support of the Bank Nifty and other favourable factors to grow.
2. Innovation and Technology in the age of COVID 19-Yes Bank
Current health crisis has altered consumption patterns of products & services offered by all global brands. As a result of lockdown, physical channels are compromised in retail, telecom, automotive, banks & many more industries. Consumers are going aggressively digital (yes baby boomers too!) from online groceries, curb-side pick-ups, banking/investments, door dash of restaurant food, at home services. Customers are exploring all digital pathways offered by brands, amplifying good, bad and ugly of service ecologies like never before!
As the world returns to normal, we see a compounded surge in digital transactions. Customers cutting across segments will refuse to embrace a physical channel for commodity sales & service again. Relationship driven interactions will be reserved for complex products & services where customers will expect a seamless hand off between digital and non-digital channels.
Digital transformation agenda will take supersonic speed across most organizations.

Data Collection
Data for AXIS BANK LTD and NIFTY 50 was taken from site then Friday closing prices were taken and returns on that was calculated for both AXIS BANK LTD and NIFTY 50.
Data Analysis
Yes Bank = 0.001218
+ 1.087445 NIFTY 50
n = 47, R Square = 0.205371
, F = 11.88867

Data for Yes Bank and NIFTY 50 was taken from site then Friday closing prices were taken and returns on that was calculated for both Yes Bank and NIFTY 50. Considering NIFTY 50 returns as X and Yes Bank as Y, regression analysis was done. Then the equation was formed and the result was interpreted.
With the above regression analysis we can conclude that:
• In case of B, it indicates that for every 1% change in X there is 1.08% change in Y.
• B is negative which indicates that as X increases Y decreases
Adding to, as P – value is 0.001218
• which is less than 0.5 indicates that it is a statistically significant variable.