Relationship between Nifty 50 and PNB<\/b><\/p>\n
Author: Pratham Tambe<\/b><\/p>\n
Introduction<\/b><\/p>\n
Punjab National Bank (PNB) is one of India\u2019s leading public sector banks, playing a significant role in the country\u2019s financial system. The Nifty 50 index represents the performance of the top 50 companies listed on the National Stock Exchange (NSE) and serves as a benchmark for the Indian equity market. Understanding the relationship between PNB\u2019s stock returns and Nifty 50 is crucial for investors seeking to evaluate systematic risk and portfolio decisions.<\/p>\n
Objective<\/b><\/p>\n
The objective of this study is to calculate the Beta<\/b> of PNB with respect to Nifty 50 and to observe its significance in determining investment strategies.<\/p>\n
Literature Review<\/b><\/p>\n
Beta is a widely used measure of systematic risk in finance. According to Sharpe (1964), the Capital Asset Pricing Model (CAPM) establishes that the expected return of a security is linearly related to its beta, which reflects sensitivity to market movements.<\/p>\n
Data Collection<\/b><\/p>\n
Data for Nifty 50 and PNB was downloaded from NSE India<\/b> for the period 1 January 2025 to 31 December 2025<\/b>. Weekly closing prices (Friday) were extracted, and weekly returns were calculated.<\/p>\n Data Analysis<\/b><\/p>\n The regression output shows:<\/p>\n Equation:<\/b> Interpretation:<\/b><\/p>\n Conclusion<\/b><\/p>\n Since Beta > 1<\/b>, investors may consider PNB for short-term investment opportunities when Nifty is rising<\/b>.<\/p>\n References<\/b><\/p>\n Relationship between Nifty 50 and PNB Author: Pratham Tambe Introduction Punjab National Bank (PNB) is one of India\u2019s leading public sector banks, playing a significant role in the country\u2019s financial system. The Nifty 50 index represents the performance of the top 50 companies listed on the National Stock Exchange (NSE) and serves as a benchmark… Continue reading Relationship between Nifty 50 and PNB<\/span><\/a><\/p>\n","protected":false},"author":140103,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-24958","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\/24958","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\/140103"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24958"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24958\/revisions"}],"predecessor-version":[{"id":24959,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24958\/revisions\/24959"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24958"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24958"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24958"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\n
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[ Y = 0.085 + 1.331X ]<\/p>\n\n
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