AUTHOR- Aditya Parida
ITM BUSINESS SCHOOL
EX MBA 11, roll no 27
INTRODUCTION- Aditya Birla Capital Limited (ABCL) is one of the largest financial services players in India and has a lending book of Rs. 579 billion as of September 30th, 2018.
In the following report we have studied closing prices of NIFTY and ABCL and compared them with the help of regression.
OBJECTIVE- To find the relationship between closing price of NIFTY and ADITYA BIRLA CAPITAL LIMITED.
DATA COLLECTION- Data has been collected from National Stock Exchange website.
DATA ANALYSIS-
Equation : Y = a+ bX
Y= 249.9114371-0.009766607X
The above equation tells us the relationship between NIFTY and ADITYA BIRLA CAPITAL LIMITED. If NIFTY closing value increase by 1. Then ADITYA BIRLA CAPITAL LIMITED closing price will decrease by 0.0097666
R2 is 0.025778153 which means 2.5% of ADITYA BIRLA CAPITAL LIMITED’s closing price depends upon NIFTY’s closing price.
F is 1.2436. P value for this is also equal to 0.270442061 which means overall model is statistically significant at 3% level of significance.
CONCLUSION- Based on the research and data analysis, I have concluded that this model is significant.