Title – Relationship between Yes Bank and Nifty50.
Author – Yash Chopra
Introduction – YES Bank is a private sector bank in India that offers a variety of products and services to retail, MSME, and corporate clients. The bank was founded in 2003 by Rana Kapoor and Ashok Kapur.
Objective – To find out Beta and significance.
Data Collection – Data for Nifty50 and Yes Bank was downloaded from NSE website from the period 1/05/2023 to 30/04/2024. Data was manipulated to get Friday closing price and weekly returns were calculated by the formula (Yt_1-Yt)/Yt*100. Weekly returns of Yes Bank were regress on weekly returns of Nifty50.
Data Analysis – Weekly Return on Interest (ROI) = -(0.47) + (-0.3)
N= 48, R2= 0. 0.0038, t stat= -0.429, F=0.176492, P-Value= 0.676362
The above Equation shows the relationship between Nifty50 and Yes Bank. The positive sign before the (-0.81) means if Nifty50 rises and Yes Bank will also rise and vice versa. The coefficient of Nifty50 has t stat –(0.429) and P-value which is 0.68 it is more than t-stat value. Nifty50 is not statistically significant to increase the price of Yes Bank. R2= 0.0038meaning 3.8% prices are explained by nifty50. 96.2% depends upon other factors like fundamentals are other factors. F= 0.17is and the P-value for this 0.67 meaning it is more than 0.5 meaning the overall model is statistically significant.
Conclusion – The coefficient is (-0.3) which is negative. Therefore, avoid this for any investment.