Report: Relationship Between Nifty 50 And Union Bank of India
Author: Umaid Khan Roll No : 81
Introduction:
Union Bank of India is one of the leading public sector banks in India, headquartered in Mumbai. Established in 1919, it was nationalized in 1969 and has since grown into a major financial institution. The bank offers a wide range of services including retail, corporate, and digital banking. After its merger with Andhra Bank and Corporation Bank in 2020, it became one of the largest banks in the country with an extensive branch network.
Objective
To calculate the beta of Union Bank of India and observe its significance
Literature of review:
Studies indicate that digital banking initiatives in Union Bank of India have improved operational efficiency and enhanced customer satisfaction through faster and more accessible services.
Research on bank mergers shows that the 2020 consolidation strengthened Union Bank of India’s market position, increased its customer base, and improved overall financial performance.
Data collection
Data of nifty 50 and Union Bank of India was downloaded from nseindian.in
Period 1/01/2025 to 31/12/2025
Data manipulation: The is filtered to obtain Friday closing prices for both nifty 50 and of Union Bank of India
Variables: weekly returns returns were calculated for nifty 50 designated as a X and Union Bank of India was designated as a Y
Methodology: the simple linear regression was preformed were Y regress X
Data analysis:
Based on summary output
Intercept (α):
0.203025
Beta (β / X Variable 1):
1.693068
P-value (for X Variable 1):
3.28E-06 (≈ 0.00000328)
The regression equation is:
Y = 0.203025 + 1.693068X
Conclusion:
There is a positive relationship between X and Y.
This means: when X increases, Y also increases.
References
1.Reserve Bank of India (2020), Report on Trend and Progress of Banking in India – Discusses the impact of bank mergers on performance and stability.
2. Union Bank of India (2021), Annual Report – Highlights digital transformation and operational efficiency improvements.
