Relationship between Nifty 50 and RBL Finserve Limited

Relationship between Nifty 50 and RBL Finserve Limited 

Author: Rushikesh Dhumal 
Roll No: 0225060 

 

Introduction 

RBL Finserve Limited is a financial services company in India and a subsidiary of RBL Bank Limited. The company operates primarily in the non-banking financial services (NBFC) sector and focuses on providing loans, financial solutions, and credit services to individuals and small businesses. Headquartered in India, RBL Finserve plays an important role in expanding financial inclusion by catering to underserved segments of the economy. 

The company contributes to economic growth by supporting credit access, boosting consumption, and strengthening the financial ecosystem. Its services align with India’s broader financial development goals by enhancing liquidity and enabling business expansion. 

 

Objective 

The primary objective of this study is to calculate the Beta coefficient for RBL Finserve Limited and determine its statistical significance relative to the market (Nifty 50). 

 

Literature Review 

  • GDP Growth and Market Returns: Studies suggest that there is a weak relationship between India’s GDP growth and stock market returns during the period 2008–2024 (Phalle et al., 2026).  

  • Market Drivers: Stock markets are largely influenced by global factors, policy changes, and political stability, with indices like the Nifty 50 reaching record highs due to investor expectations (Joshi, 2024).  

 

Data Collection 

The data for Nifty 50 and RBL Finserve Limited was sourced from NSE India for the period January 1, 2025, to December 31, 2025. 

  • Weekly (Friday closing) prices were collected  

  • Weekly returns were calculated  

  • Market returns (Nifty 50) = Independent variable (X)  

  • Company returns (RBL Finserve) = Dependent variable (Y)  

  • Total observations = 48  

Regression analysis was performed with Y regressed on X. 

 

Data Analysis 

Regression Equation: 
Y = -0.18 + 1.25X 

Particular 

Value 

N 

48 

R Square 

0.912 

F 

479.562 

P-value 

2.11E-25 

t Stat 

21.897 

Beta (B) 

1.25 

 

Interpretation 

The equation shows a positive relationship between Nifty 50 and RBL Finserve Limited. 

  • If the Nifty 50 increases by 1 unit, RBL Finserve increases by 1.25 units  

  • This indicates a highly responsive (aggressive) stock  

Statistical Insights: 

  • Beta = 1.25 → Stock is more volatile than the market  

  • t-stat = 21.897 → Strong significance  

  • P-value = 2.11E-25 (< 0.05) → Beta is statistically significant  

  • R² = 0.912 → 91.2% of returns explained by market movements  

  • Remaining 8.8% is due to other factors  

  • F = 479.562 and its p-value < 0.05 → Model is statistically significant  

 

Conclusion 

Since the Beta for RBL Finserve Limited is 1.25, the stock is more volatile than the market. 

  • It performs better than the market during bullish conditions  

  • It may fall more during bearish trends  

Therefore, this stock is suitable for investors who are willing to take higher risk for higher returns, especially when expecting the Nifty 50 to rise. 

 

References 

  • Joshi, A. (2024). India’s stock market trends and investor expectations. Bloomberg.com  

  • Phalle, M., et al. (2026). Dynamics of GDP growth and stock market performance in India. Advances in Consumer Research  

 

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