{"id":19648,"date":"2024-01-05T09:23:12","date_gmt":"2024-01-05T03:53:12","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=19648"},"modified":"2024-01-05T09:23:12","modified_gmt":"2024-01-05T03:53:12","slug":"relation-of-pnb-with-nifty","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=19648","title":{"rendered":"Relation of PNB with Nifty"},"content":{"rendered":"

Author<\/u><\/strong>: PRATIK SOMANI<\/p>\n

Roll no<\/u><\/strong>.: 21230023500<\/p>\n

Batch<\/u><\/strong>: F-3<\/p>\n

Introduction<\/u><\/strong>:<\/p>\n

Punjab National Bank<\/strong>. PNB is a state-owned financial services company headquartered in New Delhi, India. It was founded in 1895 and is one of the oldest and largest banks in India. PNB offers a range of banking and financial products and services to individuals, small businesses, and large corporations, including loans, savings and checking accounts, credit cards, insurance, and investment products. It also has a significant international presence, with branches and representative offices in several countries around the world.<\/p>\n

Views and Reviews<\/u><\/strong>:<\/p>\n

Punjab National Bank<\/strong><\/a>\u00a0has seen its shares perform exceptionally well this year so far, rewarding its shareholders with a return of 53%. During this period, the stock has appreciated from\u00a0\u20b956.80 apiece to the current level of\u00a0\u20b986.40.<\/p>\n

This marks the stock’s third consecutive yearly return. In CY21, it gained 12.86%, and in the following year, it rallied another 51.34%. Currently, the stock is ranked as the top gainer in the Nifty Bank index, with a yearly return of 55.4%.<\/p>\n

The bank’s pre-provision operating profit (PPOP) stood at\u00a0\u20b96,216 in Q2FY24, registering a growth of 11.67% over the corresponding quarter of the previous year at\u00a0\u20b95,567 crore.<\/p>\n

The provisions dropped 29.8% YoY to\u00a0\u20b93,444 crore. The drop in provisions and improvement in operating profit growth led the bank to record a net profit of\u00a0\u20b91,756 crore in Q2 FY24, the highest in 14 quarters, with a 327% YoY improvement. During the same period last year, the bank recorded a net profit of\u00a0\u20b9411 crore.<\/p>\n

\u00a0<\/p>\n

Data Collection<\/u><\/strong>:<\/p>\n

Data is carried from the NSE India site.<\/p>\n

Friday closing prices of Nifty50 are followed.<\/p>\n

The weekly returns of PNB are followed.<\/p>\n

The weekly closing returns of Nifty50 are considered X variable, and the weekly closing returns of PNB are considered Y variable.<\/p>\n

Data collection is done from 1st<\/sup> October 2022 to 30th<\/sup> September 2023.<\/p>\n

Weekly returns of Nifty = X<\/p>\n

Weekly returns of RECL Equity = Y<\/p>\n

Linear Regression was carried out.<\/p>\n

\u00a0<\/p>\n

\u00a0<\/u><\/strong><\/p>\n

\u00a0<\/u><\/strong><\/p>\n

\u00a0<\/u><\/strong><\/p>\n

Data Analysis<\/u><\/strong>:<\/p>\n

\u00a0<\/p>\n

The Regression equation is PNB = 0.0117+ 2.2943Nifty50<\/p>\n

The above equation shows the relationship between PNB Limited weekly closing return and Nifty50 weekly closing return.<\/p>\n

R-Square = 0.2828<\/p>\n

There will be a 28.28% change in PNB due to Nifty50.<\/p>\n

Beta= 0.0117<\/p>\n

P-Value= 0.00<\/p>\n

F= 18.5341<\/p>\n

T-Stat= 4.3051<\/p>\n

Nifty rises by one rupee then Equity will rise by 2.2943. t-stat for b (co-efficient of Nifty) is<\/p>\n

4.3051 and the p-value is 0.00, meaning Nifty is statistically significant for Equity at a 5% level. Number of observations are 49. R squared is 0.2828, which means that Nifty explains 28.28% of the change in Equity, which means 71.72% is the error due to variables not included in the model. F is 18.5341 and the p-value is 0.00, which means the overall model is statistically significant at a 5% level.<\/p>\n

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Conclusions<\/u><\/strong>:<\/p>\n

Beta is 0.0117<\/p>\n

Since Beta is 0.0117, less than 1, it is advisable to invest for a long time as it is less volatile.<\/p>\n

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Reference<\/u><\/strong>:<\/p>\n

https:\/\/www.nseindia.com\/market-data\/<\/a><\/p>\n

https:\/\/www.nseindia.com\/get-quotes\/equity<\/a><\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Author: PRATIK SOMANI Roll no.: 21230023500 Batch: F-3 Introduction: Punjab National Bank. PNB is a state-owned financial services company headquartered in New Delhi, India. It was founded in 1895 and is one of the oldest and largest banks in India. PNB offers a range of banking and financial products and services to individuals, small businesses,… Continue reading Relation of PNB with Nifty<\/span><\/a><\/p>\n","protected":false},"author":139214,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-19648","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\/19648","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\/139214"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19648"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19648\/revisions"}],"predecessor-version":[{"id":19649,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19648\/revisions\/19649"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19648"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19648"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19648"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}