Title : Relationship between Canara Bank Ltd Share With Nifty-50
Author : Chunoti Rane (MMS First Year, Roll No 0222111) Kohinoor Business School, Kurla .
Introduction :
Canara Bank is one of the leading public sector banks in India, with a rich history and a strong presence in the banking sector. Established in 1906, the bank has evolved over the years to become a prominent financial institution catering to a wide range of customers, including individuals, businesses, and government entities. Canara Bank is known for its comprehensive array of banking and financial services, including retail banking, corporate banking, treasury operations.
Objective :
Calculate BETA of Canara Bank and observe its Siginificance.
View and Review :
K. Satyanarayana Raju, the Managing Director and CEO of Canara Bank, said that the launch of the mobile application enabled with UPI interoperability is a revolutionary step towards digitalizing the Indian economy. This will enable customers to enjoy the benefits of fast and secure transactions with digital currency devised by the RBI, he added.
The Canara Bank Digital Rupee mobile application is available for Android and iOS users, enabling customers to conveniently transact in digital currency.
Data Collections :
Data is taken from 01-06-2022 to 31-07-2023. It has been downloaded from the NSE site, then Friday’s closing price was sorted and weekly returns of Nifty (i.e. X) and Canara Bank Ltd (i.e. Y) were calculated.
Data Analysis :
Equation – -1.0266+180.74(X)
(tstat = -0.305)
n = 50, R2 0.0019, F = 0.0930
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Canara Bank Ltd (y) the negative sign means a negative relationship meaning if “x” rises “y” falls and vice versa. If “x” rises by 1 unit, “y” falls by 180.74, “n” means there are 50 observations, and figures in brackets are tstat for “b”, so “b” is not as Calculated tstat for b i.e. -0.3050 is lower than tabulated t(t0.5,49DF= 2.012) so accept H0 and reject H1. R2 is 0.0019 means 0.1% of y is explained by x. As the calculated value of F =0.0930 is less than the tabulated F (F 0.05,1DF,49DF) = 4.18
So overall the model is statistically not significant at the 5% level.
Conclusion
As B < 1, the share is good for short term
Reference :
https://www.thehindubusinessline.com/money-and-banking/canara-bank-introduces-upi-interoperable-digital-rupee-mobile-app/article67216466.ece
