Title:\u00a0Relationship of Nifty50 with Yes bank Limited<\/b><\/p>\n
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Author:\u00a0Yash Pawar<\/b><\/p>\n
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Introduction:<\/b><\/p>\n
This study examines the relationship between the stock returns of Yes Bank Limited and the broader market represented by the NIFTY index. As a major private sector bank in India, Yes Bank has experienced significant volatility due to market conditions, regulatory interventions, and firm-specific events. Understanding the degree to which Yes Bank\u2019s stock movements are influenced by market movements is essential for investors, portfolio managers, and financial analysts.<\/p>\n
The study applies the Capital Asset Pricing Model (CAPM) framework to estimate the beta of Yes Bank Limited and analyze its sensitivity to systematic market risk. By examining the relationship between NIFTY returns and Yes Bank returns, the research provides insight into whether the stock behaves in line with the overall market or is driven largely by firm-specific factors.<\/p>\n
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Objective:<\/b><\/p>\n
Calculation of beta of Yes Bank Limited and observe its significance.<\/p>\n
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Literature Review:\u00a0 \u00a0 \u00a0<\/b><\/p>\n
View 1: Goyal, A. and Joshi, V. (2021)<\/b> \u2013 Stock Market Sensitivity of Indian Banking Stocks<\/p>\n
The study analyzed the relationship between stock returns of major Indian banking companies and benchmark indices such as NIFTY and Bank NIFTY. Using weekly data and regression analysis, the authors found that private sector banks exhibit higher beta values compared to public sector banks, indicating greater sensitivity to market movements. The study concludes that banking stocks are significantly influenced by market trends, though firm-specific risks also play a crucial role during periods of financial stress.<\/p>\n
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View 2: Sharma, R. (2023)<\/b> \u2013 Risk and Return Analysis of Indian Private Sector Banks<\/p>\n
This research focused on evaluating the systematic risk of selected private sector banks using the CAPM model. The results revealed that banks with aggressive growth strategies tend to have beta values greater than one, implying higher volatility than the market. The study emphasizes that beta is statistically significant for most private banks, suggesting a strong linkage between stock returns and market movements.<\/p>\n
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Data Collection:<\/b><\/p>\n
The data of Nifty 50 and the data for Yes Bank Limited was downloaded from 01-12-2024 to 30-11-2025 form NSE India.com. This data is used for finding out the Friday closing prices for Nifty 50 and Yes Bank Limited. 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 Yes Bank Limited was taken as Y. Y was regressed on X.<\/p>\n
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Data Analysis:<\/b><\/p>\n
Yes Bank Returns = \u22120.0673+0.1286(NIFTY 50)<\/b><\/p>\n
\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The estimated beta coefficient is 0.1286, which is positive. This indicates that Yes Bank Limited is more volatile than the overall market and tends to amplify market movements.<\/p>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The t-statistic for the beta coefficient is 3.695 with a p-value of 0.001, which is statistically significant at both the 1% and 5% levels of significance. This confirms that the relationship between NIFTY returns and Yes Bank returns is statistically meaningful.<\/p>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The R-square value of 0.229 suggests that approximately 22.9% of the variation in Yes Bank\u2019s returns is explained by movements in the NIFTY index. The remaining variation is attributed to firm-specific factors and unsystematic risk.<\/p>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The F-statistic value of 13.66 with a significance value of 0.000583 indicates that the overall regression model is statistically significant and reliable.<\/p>\n \u00a0<\/p>\n Conclusion:<\/b><\/p>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The study reveals a strong and statistically significant relationship between NIFTY returns and Yes Bank Limited returns. The estimated beta value of 1.0718 indicates that Yes Bank is an aggressive stock, exhibiting higher volatility than the market. This suggests that the stock is highly sensitive to market movements and carries greater systematic risk.<\/p>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The significant R\u00b2 and F-statistic confirm that market movements play an important role in determining Yes Bank\u2019s stock returns. However, a substantial portion of return variation is still driven by firm-specific factors such as management decisions, financial performance, and regulatory developments.<\/p>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Overall, Yes Bank Limited behaves as a market-responsive security, making it suitable for investors with higher risk tolerance who seek higher returns in bullish market condition<\/p>\n \u00a0<\/p>\n References:<\/b><\/p>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Goyal, A. & Joshi, V. (2021). Stock Market Sensitivity of Indian Banking Stocks. Journal of Financial Markets, 8(2), 45\u201358.<\/p>\n \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Sharma, R. (2023). Risk and Return Analysis of Indian Private Sector Banks Using CAPM. International Journal of Finance and Economics, 12(1), 33\u201347.<\/p>\n","protected":false},"excerpt":{"rendered":" Title:\u00a0Relationship of Nifty50 with Yes bank Limited \u00a0 Author:\u00a0Yash Pawar \u00a0 Introduction: This study examines the relationship between the stock returns of Yes Bank Limited and the broader market represented by the NIFTY index. As a major private sector bank in India, Yes Bank has experienced significant volatility due to market conditions, regulatory interventions, and… Continue reading Relationship of Nifty50 with Yes bank Limited<\/span><\/a><\/p>\n","protected":false},"author":139999,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23318","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23318","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\/139999"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23318"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23318\/revisions"}],"predecessor-version":[{"id":23319,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23318\/revisions\/23319"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23318"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23318"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23318"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}