{"id":24928,"date":"2026-03-22T14:33:25","date_gmt":"2026-03-22T09:03:25","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=24928"},"modified":"2026-03-22T14:33:25","modified_gmt":"2026-03-22T09:03:25","slug":"relationship-between-nifty-50-and-sbi-life-insurance","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=24928","title":{"rendered":"Relationship between Nifty 50 and SBI Life Insurance"},"content":{"rendered":"<p class=\"MsoNormal\"><b>Title : Relationship between Nifty 50 and SBI Life Insurance<\/b><\/p>\n<p class=\"MsoNormal\"><b>\u00a0<\/b><\/p>\n<p class=\"MsoNormal\"><b>Author:<\/b> Soham phadtare (97)<\/p>\n<div class=\"MsoNormal\" style=\"text-align: center\" align=\"center\">\n<hr align=\"center\" size=\"2\" width=\"100%\" \/><\/div>\n<p class=\"MsoNormal\"><b>Introduction:<\/b><\/p>\n<p class=\"MsoNormal\">SBI Life Insurance Company Limited is one of the leading life insurance providers in India and a key player in the financial services sector. The company is promoted by State Bank of India and represents the insurance segment of the market.<br \/>This report analyzes SBI Life\u2019s stock performance and its relationship with the broader market index, the Nifty 50.<\/p>\n<div class=\"MsoNormal\" style=\"text-align: center\" align=\"center\">\n<hr align=\"center\" size=\"2\" width=\"100%\" \/><\/div>\n<p class=\"MsoNormal\"><b>Objective:<\/b><\/p>\n<p class=\"MsoNormal\">To calculate the Beta (\u03b2) of SBI Life Insurance and analyze its relationship with market movements.<\/p>\n<div class=\"MsoNormal\" style=\"text-align: center\" align=\"center\">\n<hr align=\"center\" size=\"2\" width=\"100%\" \/><\/div>\n<p class=\"MsoNormal\"><b>Literature Review:<\/b><\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\"><b>William F. Sharpe (1964):<\/b> In the Capital Asset Pricing Model (CAPM), Beta measures the sensitivity of a stock\u2019s returns relative to the market.<\/li>\n<li class=\"MsoNormal\"><b>Eugene F. Fama &amp; Kenneth R. French (1992):<\/b> Their study suggests that although Beta is important, other factors also influence stock returns.<\/li>\n<\/ul>\n<div class=\"MsoNormal\" style=\"text-align: center\" align=\"center\">\n<hr align=\"center\" size=\"2\" width=\"100%\" \/><\/div>\n<p class=\"MsoNormal\"><b>Data Collection:<\/b><\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\">Source: NSE India (nseindia.com)<\/li>\n<li class=\"MsoNormal\">Period: 1-Jan-2025 to 31-Dec-2025<\/li>\n<li class=\"MsoNormal\">Data Filtering: Only <b>Friday closing prices<\/b> were selected<\/li>\n<li class=\"MsoNormal\">Variables:\n<ul style=\"margin-top: 0cm\" type=\"circle\">\n<li class=\"MsoNormal\">X = Returns of Nifty 50<\/li>\n<li class=\"MsoNormal\">Y = Returns of SBI Life Insurance<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<div class=\"MsoNormal\" style=\"text-align: center\" align=\"center\">\n<hr align=\"center\" size=\"2\" width=\"100%\" \/><\/div>\n<p class=\"MsoNormal\"><b>\u00a0<\/b><\/p>\n<p class=\"MsoNormal\"><b>Data Analysis:<\/b><\/p>\n<p class=\"MsoNormal\"><b>1. Regression Output (Key Values):<\/b><\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\">Intercept (\u03b1): <b>0.54<\/b><\/li>\n<li class=\"MsoNormal\">Beta (\u03b2): <b>1.10<\/b><\/li>\n<li class=\"MsoNormal\">R\u00b2: <b>0.35<\/b><\/li>\n<li class=\"MsoNormal\">P-value (Beta): <b>0.00<\/b><\/li>\n<\/ul>\n<div class=\"MsoNormal\" style=\"text-align: center\" align=\"center\">\n<hr align=\"center\" size=\"2\" width=\"100%\" \/><\/div>\n<p class=\"MsoNormal\"><b>2. Equation:<\/b><\/p>\n<p class=\"MsoNormal\">The regression equation is:<\/p>\n<p class=\"MsoNormal\"><b>Y = 0.54 + 1.10(X)<\/b><\/p>\n<div class=\"MsoNormal\" style=\"text-align: center\" align=\"center\">\n<hr align=\"center\" size=\"2\" width=\"100%\" \/><\/div>\n<p class=\"MsoNormal\"><b>3. Interpretation:<\/b><\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\"><b>Beta = 1.10<\/b><br \/><span style=\"font-family: 'Segoe UI Emoji',sans-serif\">\ud83d\udc49<\/span> SBI Life is <b>more volatile than the market<\/b><br \/><span style=\"font-family: 'Segoe UI Emoji',sans-serif\">\ud83d\udc49<\/span> If Nifty increases by 1%, SBI Life increases by ~1.10%<\/li>\n<li class=\"MsoNormal\"><b>R\u00b2 = 0.35<\/b><br \/><span style=\"font-family: 'Segoe UI Emoji',sans-serif\">\ud83d\udc49<\/span> 35% of SBI Life\u2019s movement is explained by the market<\/li>\n<li class=\"MsoNormal\"><b>P-value = 0.00 (&lt; 0.05)<\/b><br \/><span style=\"font-family: 'Segoe UI Emoji',sans-serif\">\ud83d\udc49<\/span> The relationship is <b>statistically significant<\/b> <span style=\"font-family: 'Segoe UI Emoji',sans-serif\">\u2705<\/span><\/li>\n<\/ul>\n<div class=\"MsoNormal\" style=\"text-align: center\" align=\"center\">\n<hr align=\"center\" size=\"2\" width=\"100%\" \/><\/div>\n<p class=\"MsoNormal\"><b>Conclusion:<\/b><\/p>\n<p class=\"MsoNormal\"><span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>The Beta of SBI Life Insurance is <b>positive and greater than 1<\/b>, Invest in this company <span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/p>\n<p class=\"MsoNormal\"><span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>for short term<\/p>\n<p class=\"MsoNormal\">\u00a0<\/p>\n<p class=\"MsoNormal\"><b><span>\u00a0 <\/span>Reference:<\/b><\/p>\n<p class=\"MsoListParagraphCxSpFirst\" style=\"margin-left: 54.0pt;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: Symbol\"><span>\u00b7<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]-->Sharpe, W. F. (1964). Capital Asset Pricing: A Theory of Market Equilibrium.<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 54.0pt\">Journal of Finance.<\/p>\n<p class=\"MsoListParagraphCxSpLast\" style=\"margin-left: 54.0pt;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: Symbol\"><span>\u00b7<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]-->Fama, E. F., &amp; French, K. R. (1992). The Cross-Section of Expected Stock Returns. Journal of Finance.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Title : Relationship between Nifty 50 and SBI Life Insurance \u00a0 Author: Soham phadtare (97) Introduction: SBI Life Insurance Company Limited is one of the leading life insurance providers in India and a key player in the financial services sector. The company is promoted by State Bank of India and represents the insurance segment of&hellip; <a class=\"more-link\" href=\"http:\/\/www.sachdevajk.in\/?p=24928\">Continue reading <span class=\"screen-reader-text\">Relationship between Nifty 50 and SBI Life Insurance<\/span><\/a><\/p>\n","protected":false},"author":140145,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-24928","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\/24928","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\/140145"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24928"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24928\/revisions"}],"predecessor-version":[{"id":24929,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24928\/revisions\/24929"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24928"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24928"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24928"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}