Title : Relationship of State Bank of India with Nifty 50
Author : Sujal Upadhyay
Introduction :
The State Bank of India (SBI) traces its roots to the Bank of Calcutta, established in 1806. In 1955, the Imperial Bank of India was nationalized to form SBI. In 1959, eight former state-associated banks became SBI’s subsidiaries. SBI has since grown to be one of India’s largest and most trusted banks, offering a wide range of financial services to individuals and businesses.
Objective : To find out Beta of State Bank of India and its significance .
Data Collection: Data was collected from nseindia.in
Values of Friday weekly close , then the weekly returns were found using (Yt+1-yt)/Yt*100
Y = State Bank of India
X= Nifty 50
Y was regress on X
Data Analysis : Weekly returns of State Bank of India =0.48
N = 48
R Square = 0.23 ,
Which means 23% of State Bank of India returns are explained by Nifty 50 and the balanced error are influenced by other variables .
F = 14.14 and P value is 0.000476 its is less than 0.05 meaning overall model is statistically significant at 5% level .
Conclusion :
Β < 1 and positive (less than 1) means good for long term investment .