Relationship between RBL Bank with Nifty50.

Title: Relationship between RBL Bank with Nifty50.

Author: Rohan Rokade

Introduction: – 

RBL Bank is one of India’s leading private sector banks with an expanding presence across the country. The Bank offers specialized services under five business verticals namely: Corporate Banking, Commercial Banking, Branch & Business Banking, Retail Assets and Treasury & Financial Markets Operations.

Data Collection:

Data for NIFTY 50 and RBL Bank has been downloaded from NSE website for Period of 1st March 2023 to 28th February 2024, Friday closing prices were calculated and weekly returns was found out. Weekly Returns of Asian Paints were regressed on weekly returns on NIFTY 50.

Data Analysis:

Y = 0.341901+0.132036 X

The above equation shows relationship between weekly returns of RBL Bank and Nifty 50. Negative sign means inverse relationship, if price rises demand falls and vice versa.

T-stat for b is 4.746929 and the p value is 2.04428 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 0.328794, meaning 32% of RBL Bank share is explained by the movement in Nifty, Balance meaning 68 is error due to the variables not taken in the model.

F is the 22.53333045 P value for which is 2.04428 which is more than 0.05 so the overall model is not statistically significant.

Conclusion: –

As beta = 0.132036, is less than 1, therefore company is good for long term investment.

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