# Relationship of Yes Bank with nifty fifty

Title: Relationship of Nifty 50 stock with Yes Bank Limited

Author: Yugandhara Ananta Chaudhari

Introduction:

YES BANK is a ‘Full Service Commercial ‘Bank’ providing a complete range of products, services and technology driven digital offerings, catering to Retail, MSME as well as corporate clients. YES BANK operates its Investment banking, Merchant banking & Brokerage businesses through YES SECURITIES, a wholly owned subsidiary of the Bank. Headquartered in Mumbai, it has a pan-India presence including an IBU at GIFT City, and a Representative Office in Abu Dhabi.

Objective: To find out Beta of Yes Bank Limited And its significance

Data collection:

The data for Nifty50 and Yes Bank limited has been downloaded from NSE India.com for the period of 03/02/2023 to 19/01/2024. Weekly closing price was found out. Weekly return were calculated. Weekly return of Yes Bank limited were regressed on weekly return of Nifty50.

Data Analysis:

Equation of regression of weekly returns of Yes Bank limited on weekly returns of Nifty 50 index.

Format of Regression equation is Y = α + β(X)

Weekly returns of Yes Bank limited = -0.44185 + 1.35911 × weekly return of Nifty 50 index

Where,

Number of observation = 48

R Square = 0.16192

F = 8.88725

P-value = 0.00458

Interpretation,

•            The above equation shows the relationship between weekly returns of Yes Bank limited and weekly returns of Nifty 50 share.

• Positive sign means direct relation, meaning if weekly returns of Nifty 50 index rise then weekly returns of Yes Bank limited will rise and vice-versa.
• If weekly return of Nifty 50 index rise by 1 unit, weekly returns of Yes Bank limited will rise by 1.35911 unit and vice-versa.
• Figure in bracket shows t-stat for β, P-value 0.00458 for which is which is smaller than 0.05 meaning β is statistically significant at 5% significant level.
• Number of observation are 48, R- square value is 0.16192 meaning approximately 12.03% of weekly returns of SRF limited are explained by weekly returns of Nifty 50 index. Balance 87.97% (approximate) is error due to other variables which are not model.
• F is 8.88725, the P-value of which is 0.00458, which is smaller than 0.05 meaning overall, the model is statistically significant at 5% significance level.

Conclusion:

As β (1.35911) is more than 1, therefore it is not good to invest in Yes Bank limited for long term.

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