Title:- Relationship of SBI Cards and Payment Services Ltd with Nifty 50.
Author:- Shreyas Tukaram Kannawar (MMS First Year, Roll no. 0222024), Kohinoor Business School, Kurla.
Introduction:- SBI Cards & Payment Services Limited, previously known as SBI Cards & Payment Services Private Limited, is a credit card company and payment provider in India. SBI Card launched in May 1998 by State Bank Of India and GE Capital. In December 2017, State Bank of India and The Carlyle Group acquired stake in the company. SBI Card is headquartered in Gurugram, Haryana/Delhi NCR. The company is the only publicly listed pure-play credit card issuer in India.
Objective: – To Calculate the Beta of SBI Cards and Payment Services Ltd and find out its significance.
Views and Reviews: –
Rama Mohan Rao Amara, MD & CEO, SBI Cards and Payment Services Ltd. (2023) says that “Our sharp focus on strengthening acquisition channels and acquisition quality, enhancing sustainability of the business, and ensuring an engaged and active customer base yielded new benchmarks for FY2023.”
Dinesh Khara, Chairman, SBI Cards and Payment Services Ltd. (2023) says that “According to a recent report, India’s digital payments market is poised to grow from the current US$3 trillion to US$10 trillion by 2026, representing an increase of more than threefold”.
Data Collections:- Data is taken from 01-07-2022 to 30-06-2023. It has been downloaded from the NSE site, then Friday’s closing price was sorted and weekly returns of Nifty (i.e. X) and SBI Cards and Payment Services Ltd (i.e. Y) were calculated.
Data Analysis:- Equation “Y=0.7994-1.3493(X)”
(tstat= 4.9620)
n = 50, R2 = 0.3390, F = 24.6217
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of SBI Cards and Payment Services 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 1.3493, “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. 4.9620 is higher than tabulated t(t0.5,49DF=1.677) so reject H0 and accept H1. R2 is 0.3390 means 33.90% of y is explained by x. As the calculated value of F = 24.6217 is less than the tabulated F(F 0.05,1DF,49DF)=4.038, the overall model is not statistically significant at the 5% level.
So overall the model is statistically not significant at the 5% level.
Conclusion:-
If b > 1, SBI Cards and Payment Services Ltd share is good for short term investment.
Reference:-
https://www.bseindia.com/xml-data/corpfiling/AttachHis//76523eb8-2662-4c89-8934-ee31ef9233a2.pdf
https://www.bseindia.com/xml-data/corpfiling/AttachHis//76523eb8-2662-4c89-8934-ee31ef9233a2.pdf