{"id":25006,"date":"2026-03-22T19:39:13","date_gmt":"2026-03-22T14:09:13","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=25006"},"modified":"2026-03-22T19:39:13","modified_gmt":"2026-03-22T14:09:13","slug":"rbl-bank","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=25006","title":{"rendered":"RBL Bank"},"content":{"rendered":"

Title: Relationship of Nifty50 with RBL Bank Limited<\/span><\/u><\/b><\/p>\n

Author: Riya Govekar <\/span><\/u><\/strong><\/p>\n

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

RBL Bank Limited, founded in 1943, is a fast-growing Indian private sector bank headquartered in Mumbai. It serves over 15 million customers nationwide through 580 branches and 1,300+ business correspondent branches. RBL provides comprehensive financial services across retail, corporate, and SME segments.\u00a0<\/span><\/p>\n

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Objective:<\/span><\/u><\/p>\n

Calculation of Beta & observe its Significance.<\/span><\/p>\n

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Literature Review:<\/span><\/u><\/p>\n

William F. Sharpe (1964) developed the Capital Asset Pricing Model (CAPM), which explains the relationship between risk and return. The study introduced beta as a measure of a stock\u2019s sensitivity to market movements, making it a key tool in analyzing the relationship between individual stocks and market indices like the Nifty 50.<\/span><\/p>\n

Eugene F. Fama and Kenneth R. French (1992) expanded the understanding of stock returns by suggesting that factors beyond beta also influence returns. However, they confirmed that market risk remains a significant determinant in explaining stock performance.<\/span><\/p>\n

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

Data for Nifty50 & RBL Bank Limited was downloaded from NSEindia.com For the period 01-01-2025 to 31-12-2025, Friday closing prices for Nifty50 & RBL Bank Limited were segregated. Weekly returns of Nifty50 & RBL Bank Limited were calculated. Weekly return of Nifty50 were taken as X & weekly return of RBL Bank Limited were taken as Y.<\/span><\/p>\n

Y was regressed on X.<\/span><\/p>\n

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

Equation- Y= 1.1669+1.0507X<\/span><\/p>\n

N= 48,\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>\u00a0<\/span>R square =0.28,\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>\u00a0<\/span>F=18.5987,<\/span><\/p>\n

P value= 8.45E-05,\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>B= 1.05,\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>t stat= 4.3126,\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/span><\/p>\n

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The above equation shows the relationship between Nifty 50 and RBL Bank Limited, there is positive relationship which means if Nifty 50 rises RBL Bank Limited rises and vice-versa, if Nifty 50 rises by 1 unit the RBL Bank Limited will rise by 1.05 units number of observation are 48 Tstat for beta is 4.3126, the P-value for which is 8.45E-05, which is less than .05 meaning beta is statistically significant at 5% level means Nifty 50 impacts at 5% level. R square is 0.28, meaning 28% of RBL Bank Limited is explained by Nifty 50. 72% is the error due to the variables not included in the model. F is 18.5987, and the P-value is 8.45E-05 which is less than .05 it means overall the model is statistically significant at 5% level. <\/span><\/p>\n

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

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

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

William F. Sharpe (1964). Capital Asset Prices: A Theory of Market Equilibrium under Conditions of Risk. Journal of Finance, 19(3), 425\u2013442.<\/span><\/p>\n

Eugene F. Fama & Kenneth R. French (2004). The Capital Asset Pricing Model: Theory and Evidence. Journal of Economic Perspectives, 18(3), 25\u201346.<\/span><\/p>\n

\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Title: Relationship of Nifty50 with RBL Bank Limited Author: Riya Govekar Introduction: RBL Bank Limited, founded in 1943, is a fast-growing Indian private sector bank headquartered in Mumbai. It serves over 15 million customers nationwide through 580 branches and 1,300+ business correspondent branches. RBL provides comprehensive financial services across retail, corporate, and SME segments.\u00a0 \u00a0… Continue reading RBL Bank<\/span><\/a><\/p>\n","protected":false},"author":140167,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-25006","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\/25006","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\/140167"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25006"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/25006\/revisions"}],"predecessor-version":[{"id":25007,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/25006\/revisions\/25007"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25006"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25006"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}