Relationship between Nifty and SBI

  1. Author :- Srishti More

Introduction 

State Bank of India (SBI) is the largest public sector bank in India, providing a wide range of financial services. It plays a crucial role in the country’s banking sector and has a significant international presence. As a government-owned bank, SBI serves millions of customers and contributes significantly to India’s economic development. It offers services ranging from retail and corporate banking to insurance and investment products. SBI is a key player in India’s financial landscape and is known for its extensive branch network and diverse product offerings.

Objective :- To find out beta and its significance

Views and Reviews 

Increasing Revenue every Quarter for the past 8 Quarters

Affordable Stocks with High ROE and Momentum

Data collection: 

Nifty and SBI’s closing price was collected from NSE website. Weekly return of Nifty is termed as “X” and weekly return of SBI is termed as “Y”. Besides that, a few other things written in this report are taken from other websites and its information is provided in reference.

Data Analysis:

Equation: Y=0.06+0.075X

Interpretation:

 The above equation shows the relation between Nifty50 and SBI Return of SBI is dependent variable and return of Nifty50 is independent variable.

Number of observations is 47

1.02 is T-stat for Y, p-value for this 0.31 

R square is 0.02 which means 2% of variances in SBI are explained by Nifty.

F is 1.05 p-value for this is 0.31 which means model is statistically significant at 1% level.

Conclusion :

Beta is 0.06 which is less than 1, it means that Bank of Baroda is good for long term investment.

References

http://www.nseindia.com/

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