{"id":19282,"date":"2023-12-26T08:52:30","date_gmt":"2023-12-26T03:22:30","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=19282"},"modified":"2023-12-26T08:52:30","modified_gmt":"2023-12-26T03:22:30","slug":"relationship-between-nifty-50-and-sbi","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=19282","title":{"rendered":"Relationship between Nifty 50 and SBI"},"content":{"rendered":"

Author:<\/strong> Shivam Srivastava<\/p>\n

Introduction:<\/strong> State Bank of India (SBI) is the largest banking and financial services company in India.\u00a0It’s a public sector bank so 57.6% of the shares is owned by the Government of India. It offers a wide range of products and services, including savings and current accounts, loans, credit cards, investments, and insurance.\u00a0It has operations in over 30 countries.<\/p>\n

Objective: <\/strong>The objective is to determine the value of \u00df (Beta) which is the coefficient of variable X, which denotes the relationship between dependent variable (SBI) and independent\u00a0variable (Nifty 50).<\/p>\n

Views and reviews:<\/strong><\/p>\n

    \n
  1. By 2023, SBI will be nearer 15% ROE, rate hikes to boost NIMs: Dinesh Kumar Khara, Chairman SBI.<\/strong> \u201cInflation is a function of multiple variables, and a major component is fuel-led inflation and also the edible oil-led inflation both of which are essentially on account of the imports which we are having. Going forward, how these two very important factors behave will probably give the trajectory for inflation.\u201d<\/li>\n
  2. On Friday, SBI reported a 41.27 per cent jump in standalone net profit for the quarter ending March at Rs 9,113.53 crore, up from Rs 6,450.75 crore in the same quarter a year ago. There was double digit loan growth, coming at 11%, it is a positive surprise, being above industry trend,\u201d says\u00a0Saurabh Jain<\/strong>, Assistant Vice President \u2013 Research (Retail Equities),\u00a0SMC Global Securities<\/strong>\n<\/li>\n<\/ol>\n

    Data collection: <\/strong>There are two parts in the data collection:<\/p>\n

      \n
    1. Collecting the historical data of Nifty50 from the website of NSE India from 01\/10\/2022 to 30\/09\/2023. After collection of the entire data of the given period only the data of Friday\u2019s are taken by sorting the whole data. According to the closing data of Nifty 50 of the period, return values are collected using the formula of return.<\/li>\n
    2. Collecting the historical data of equity (State Bank of India) from the website of NSE India from 01\/10\/2022 to 30\/09\/2023. After collection of the entire data of the given period only the data of Friday\u2019s are taken by sorting the whole data. According to the closing data of Nifty 50 of the period, return values are collected using the formula\u00a0of\u00a0return.<\/li>\n<\/ol>\n

      Data analysis:
      <\/strong>Correlation = 0.15
      Nifty 50 (X) = Independent Variable
      Sbi (Y) = Dependent Variable
      Sbi = -0.2903 + 0.3684(Nifty 50)
      \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1.0685
      N= 49, Square of R = 0.0237, F = 1.142, P value = 0.290
      The above equation shows us the relationship between Nifty 50 and SBI. SBI is the dependent variable and Nifty 50 is the independent variable. The positive sign shows there is a positive relation between them and that if Nifty 50 rises SBI also rises and vice versa.<\/p>\n

      If Nifty 50 rises by \u20b91, SBI will also increase by 36p.
      t-state for B (Coefficient of Nifty) is 1.068 and the P value is 0.29 which means Nifty is not statistically significant for SBI at 1% level.
      \u00a0Number of observations are 49
      \u00a0R square is 0.0237
      \u00a0which means 2.37% of SBI increase rate is dependent on nifty 50\u2019s.
      \u00a0In other words 97.63% is error which may be due to other variables we are not been taken in the model.
      \u00a0F is 1.142 and the p value is 0.290 which means overall the model is not statistically significant at 1% level.<\/p>\n

      Conclusion:<\/strong> Beta is -0.2903 is less than 1, which means Britannia is good for long term investment.<\/p>\n

      References:<\/strong><\/p>\n

        \n
      1. Khara, D. K. (2023, May 11). By 2023, SBI will be nearer 15% RoE; rate hikes to boost NIMs: Dinesh Kumar Khara.\u00a0The Economic Times<\/a>1<\/sup><\/a><\/li>\n
      2. Jain, S. (2023, May 11). SBI asset quality has improved, loan growth in double digits: Saurabh Jain.\u00a0The Economic Times<\/a>2<\/sup><\/a><\/li>\n
      3. National Stock Exchange of India. (n.d.). Reports & Indices – Historical Index Data.\u00a0Retrieved December 25, 2023, from https:\/\/www.nseindia.com\/reports-indices-historical-index-data\u00a0<\/a>3<\/sup><\/a><\/li>\n
      4. National Stock Exchange of India. (n.d.). SBIN – State Bank of India.\u00a0Retrieved December 25, 2023, from https:\/\/www.nseindia.com\/get-quotes\/equity?symbol=SBIN\u00a0<\/a>4<\/sup><\/a><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

        Author: Shivam Srivastava Introduction: State Bank of India (SBI) is the largest banking and financial services company in India.\u00a0It’s a public sector bank so 57.6% of the shares is owned by the Government of India. It offers a wide range of products and services, including savings and current accounts, loans, credit cards, investments, and insurance.\u00a0It… Continue reading Relationship between Nifty 50 and SBI<\/span><\/a><\/p>\n","protected":false},"author":139081,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-19282","post","type-post","status-publish","format-standard","hentry","category-finance","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19282","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/users\/139081"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19282"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19282\/revisions"}],"predecessor-version":[{"id":19283,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19282\/revisions\/19283"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19282"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19282"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19282"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}