Title- Relationship between Nifty 50 and SBI Ltd. Equity price.
Name of Author- SAKSHI BHASKER (021230022444)
Introduction- State Bank of India is a Fortune 500 company. It is an Indian Multinational, Public Sector banking and financial services statutory body headquartered in Mumbai. It is the largest and oldest bank in India with over 200 years of history.
Objective- To calculate the predicted value (β) and its significance
Data collection- The data used for analysis is collected from the NSE site and after that Sbi Ltd. Equity (y) was regressed on Nifty 50 (x).
Data Analysis
Regression equation, β= -0.1093+ 0.4598(x)
Where x represents the Nifty 50.
No. of observations (N)= 50
R²=0.5252, F=53.109
t-stat for x=7.287
The above equation tells us the relationship between SBI Ltd. Equity (y) and Nifty 50 (x). The positive sign means there is a direct relationship between them, which means if Nifty 50 increases, then the equity price of SBI Ltd. will also increase.
If the Nifty 50 rises by 1 point, then the Equity share price will also increase by 0.4598 Rs.
T-stat for the Nifty 50 is 7.287 and the p-value is 2.66918E-09 which is less than 0.01 means the data is statistically significant at a 1% confidence level.
N=50, there is a total of 50 observations.
R²=0.5252 means 52.52% of y is explained by x while the rest 47.48% is an error.