Title: Relationship between Nifty 50 and SBICard and Payment Service Limited.
Author: Shubham C Pandey
Introduction :-
SBI Card, launched in 1998 as a joint venture between State Bank of India and GE Capital, evolved into SBI Cards and Payments Services Limited in 2019. In March 2020, it became India’s first pure-play credit card company to be listed on the stock exchanges. With a customer-centric approach and innovative offerings, SBI Card has rapidly grown to become the country’s second-largest credit card issuer, currently serving over 18 million customers.
Objective: To calculate beta and its significance.
Data Collection:
Data for NIFTY 50 and SBICard and Payment Service Ltd has been downloaded from NSE website from Period 1st March 2023 to 28th February 2024, Friday closing prices were calculated and returns were Find out. Weekly Returns of SBICard and Payment Service Ltd were regressed on weekly Returns on NIFTY 50.
Data Analysis:
SBICard share=0.053187+0.025936 Nifty(x)
The above equation shows relationship of SBICard and Payment Service Ltd and Nifty 50. The positive sign means that there is a direct relationship between Nifty 50 and SBICard and Payment Service Ltd .
If Nifty 50 rises by 1 unit, SBICard and Payment Service Ltd will follow by 0.025936.
t-stat for b is 0.090416 and the p value is 0.928349 which is more than 0.05 , meaning b is not statistically significant at 5% level. , meaning price does not play a significant role for demand. Numbers of observations are 48.
R-square is 0.000178, meaning 0.01% of SBICard and Payment Service Ltd share is explained by the movement in Nifty, Balance meaning 99.99% is error due to the variables not taken in the model.
F is 0.008175 the P value for which is 0.928349 which is more than 0.05 so the overall model is not statiscally significant.
Conclusion:-
As beta =-0.025936, is less than 1, therefore company is good for long Term.