{"id":24960,"date":"2026-03-22T16:08:28","date_gmt":"2026-03-22T10:38:28","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=24960"},"modified":"2026-03-22T16:08:28","modified_gmt":"2026-03-22T10:38:28","slug":"relation-of-nifty-50-with-sbi-cards-and-payments-services-ltd","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=24960","title":{"rendered":"Relation of Nifty 50 with SBI Cards and Payments Services Ltd"},"content":{"rendered":"

Title: Relation of Nifty 50 with SBI Cards and Payments Services Ltd<\/span><\/b><\/p>\n

Author<\/span><\/b>: Sahil Kumbhar – 22<\/b><\/span><\/p>\n

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Introduction:<\/span><\/b><\/p>\n

SBI Cards and Payment Services Limited is one of India\u2019s leading credit card issuers, offering a wide range of credit card products and payment solutions to individuals and businesses. It is a subsidiary of State Bank of India, leveraging the bank\u2019s strong customer base and extensive network to expand financial services and promote digital payments across the country. The objective is to analyze how movements in the overall market influence the returns of SBI Cards and Payments Services Ltd. <\/span><\/p>\n

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Objective: To calculate beta and observe its significance<\/span><\/p>\n

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Literature review:<\/span><\/p>\n

John Lintner (1965) expanded the Capital Asset Pricing Model by explaining how investors balance risk and return in relation to market movements. His work emphasized that systematic risk plays a crucial role in determining expected stock returns.<\/span><\/p>\n

Stephen Ross (1976) introduced the Arbitrage Pricing Theory, stating that multiple economic factors influence stock returns beyond just market risk. His theory highlighted the role of macroeconomic variables like inflation and interest rates.<\/span><\/p>\n

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Data collection:<\/span><\/p>\n

Data for Nifty 50 and SBI Cards and Payments Services Ltd was downloaded from Nseindia.com for the period 1\/1\/2025 to 31\/12\/2025 Friday closing price for Nifty 50 and SBI Cards and Payments Services Ltd were calculated. Weekly returns of Nifty 50 were taken as X and Weekly return of SBI Cards and Payments Services Ltd were taken as Y. Y was regressed on X.<\/span><\/p>\n

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

Y= -0.6105+ 1.0669x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/p>\n

N= 48\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>R Square= 0.34\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>F= 24.01<\/span><\/p>\n

P= 1.22725E-05\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>B= 1.0669\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>T-Stat= 4.9003<\/span><\/p>\n

The above Equation shows the relationship between <\/span>Nifty 50<\/span> and SBI Cards and Payments Services Ltd. Positive means their Direct relation which means if <\/span>Nift<\/span>y <\/span>50 <\/span>stock rises SBI Cards and Payments Services Ltd stock rise and vice versa. If Nifty 50 stock increases by 1 unit, the SBI Cards and Payments Services Ltd stock increases by 1.0669 unit. Number of observations is 48. T-stat for beta is 4.9003. The P value is 1.22725E-05 less than 0.5 meaning Beta is statistically significant at 5% level. R square is 0.34 meaning 34% is explained by market return and 66% is the error due to the variability, not included in model. F is 24.01 and P value is 1.22725E-05 less than 0.5 meaning Beta is statistically significant at 5% level.<\/span><\/p>\n

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Conclusion:<\/span><\/p>\n

B>1, Hence invest for short term if Nifty 50 rise<\/span><\/p>\n

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Reference: <\/span><\/p>\n

\u00a0<\/span>John Lintner (1965). The Valuation of Risk Assets and the Selection of Risky Investments in Stock Portfolios and Capital Budgets.<\/i><\/span><\/p>\n

Stephen Ross (1976). The Arbitrage Theory of Capital Asset Pricing.<\/i> Journal of Economic Theory.<\/span><\/p>\n

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Title: Relation of Nifty 50 with SBI Cards and Payments Services Ltd Author: Sahil Kumbhar – 22 \u00a0 Introduction: SBI Cards and Payment Services Limited is one of India\u2019s leading credit card issuers, offering a wide range of credit card products and payment solutions to individuals and businesses. It is a subsidiary of State Bank… Continue reading Relation of Nifty 50 with SBI Cards and Payments Services Ltd<\/span><\/a><\/p>\n","protected":false},"author":140174,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-24960","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\/24960","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\/140174"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24960"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24960\/revisions"}],"predecessor-version":[{"id":24961,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24960\/revisions\/24961"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24960"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24960"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24960"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}