{"id":23262,"date":"2025-12-21T00:43:57","date_gmt":"2025-12-20T19:13:57","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23262"},"modified":"2025-12-21T00:43:57","modified_gmt":"2025-12-20T19:13:57","slug":"relationship-of-nifty-with-sbin","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23262","title":{"rendered":"Relationship of Nifty with SBIN"},"content":{"rendered":"

Title : Relationship of Nifty with SBIN<\/span><\/b><\/p>\n

Author:<\/span><\/b> Shubham Parmar<\/span><\/p>\n

Introduction:<\/span><\/b>\u00a0 <\/span>State Bank of India (SBIN)<\/b> is India\u2019s largest public sector bank and a systemically important financial institution. Established in 1955, it offers a wide range of banking and financial services including retail banking, corporate lending, investment banking, and digital payments. SBI has an extensive domestic and international network, serving millions of customers across urban and rural India. The bank plays a crucial role in India\u2019s economic development by supporting infrastructure, MSMEs, and financial inclusion initiatives.<\/span><\/p>\n

Objective:<\/span><\/b> Calculation of beta of SBIN and observe its significance<\/span><\/p>\n

Literature Review: \u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/b><\/p>\n

View 1: Strong Historical Financial Performance but Some Weaknesses<\/span><\/b><\/p>\n

A research paper analyzing SBI\u2019s performance over an 11-year period (2002\u20132012) using financial ratios found that SBI ranked top among public sector banks in India<\/b>, demonstrating sound financial strength and operational performance. The study attributes this strong performance to the bank\u2019s adoption of modern technology, implementation of banking reforms, and effective recovery mechanisms. However, the authors also note that SBI needs improvement in areas such as debt-equity ratios and non-interest income generation, indicating some areas of financial weakness despite overall strong performance. (Sources: Indian Journal of Finance)<\/span><\/p>\n

\ud83d\udccc<\/span><\/b> View 2: Recent Share Price Trends Reflect Broader Economic Impacts<\/span><\/b><\/p>\n

A more recent analytical study on SBI\u2019s share price performance over the last five years (2019\u20132024) highlights that trends in the bank\u2019s stock price are influenced by macroeconomic events, policy changes, and investor sentiment<\/b>. The research suggests that SBI\u2019s share price serves as a bellwether for the broader Indian banking sector, meaning that the performance of SBI stock often reflects larger economic and regulatory conditions affecting the industry as a whole. (Sources: IRR Journal)<\/span><\/p>\n

Data Collection: <\/span>The data of Nifty 50 and the data for SBIN was downloaded from 01-12-2024 to 30-01-2025 form NSE India.com. This data is used for finding out the Friday closing prices for Nifty 50 and Vodafone idea. Weekly return was calculated by the formula (Yt+1-Yt)\/Yt*100 and then weekly returns of the Nifty 50 was taken as X and the equity of Vodafone Idea was taken as Y. Y was regressed on X.<\/span><\/p>\n

Data Collection: <\/span><\/b><\/p>\n

The data of Nifty 50 and the data for SBIN was downloaded from 01-12-2024 to 30-01-2025 form NSE India.com. This data is used for finding out the Friday closing prices for Nifty 50 and Vodafone idea. Weekly return was calculated by the formula (Yt+1-Yt)\/Yt*100 and then weekly returns of the Nifty 50 was taken as X and the equity of SBIN was taken as Y. Y was regressed on X.<\/span><\/p>\n

Data Analysis: <\/span><\/b><\/p>\n

SBIN Returns = \u2212693.61+0.0615(NIFTY\u00a050)<\/span><\/p>\n