TITLE: Relationship between Simplex Infrastructures Limited
Ltd. and Nifty50
AUTHOR: G Sritam
INTRODUCTION:
Simplex Infrastructures Ltd. is a diversified company established in 1924 and executing projects in several sectors like Transport, Energy & Power, Mining, Buildings, Marine, Real Estate etc.

Simplex is one of the construction leaders in India for nearly 90 years executing projects with consistent quality assurance, cost control and adherence to milestones in a safe environment as per the customer requirements. It promotes the culture of sharing rich and varied experience with staff members, as also with clients and thereby benefits and helps the growth of the construction fraternity and society at large.

The Company has been closely associated with the country’s infrastructure building with over 2600 completed projects spanning almost all the gamut of construction industry.

OBJECTIVES:
To find out Beta for the Simplex Infrastructures Ltd and its significance

VIEWS AND REVIEWS:
• 03 Jan,2020, 03:38PM IST
The Exchange has received the disclosure under Regulation 29(1) of SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011 for Baba Basuki Distributors Pvt LtdNovember 26, 2019: Glenmark Pharmaceuticals Inc., USA (Glenmark) has been granted final approval by the United States Food & Drug Administration (U.S. FDA) for Metformin Hydrochloride Extended-Release Tablets USP, 500 mg and 1000 mg, the generic version of Glumetza®1 Extended-Release Tablets, 500 mg and 1000 mg, of Salix Pharmaceuticals Inc.
• 02 Jan,2020, 02:18PM IST
The Exchange has received the disclosure under Regulation 29(1) of SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011 for Baba Basuki Distributors Pvt Ltd

DATA COLLECTION:
Data for everyday closing price of Nifty50 and Simplex Infrastructures Ltd. from 1st Dec 2018 to 30th Nov 2019 have been collected from NSE website. The data have been converted into weekly closing format. It is then manipulated and done regression analysis of the same.

DATA ANALYSIS:
Equation : Y = -3.7 + 0.02 X
N (no. of observations) = 50
R^2 = 0.09
F = 4.97
t-stat = 2.23

DESCRIPTION:
• The above equation shows as the relationship between Simplex Infrastructures Ltd. ( Y ) and Nifty50 ( X ). If 1 unit of price of Nifty50 increases, the price of per share of Glenmark Pharmaceuticals Ltd. will increase by Rs. 0.02. Positive sign of Beta shows that there is a direct relationship. If price of Nifty50 rises, the price of Simplex Infrastructures also rises, and vice-versa.
• t-stat for Beta is 2.23
• p-value is 0.01, which is less than 0.05, which means Beta is statistically significant at 5% level. It is not 0.
• R square is 0.09, which means 9% of the price of Simplex Infrastructures Ltd depends on the price of Nifty50. Balance 91% is error or other items which we have not taken in the model.
• F is 0.03. The p-value for which is also less than 0.05, which means overall this model is statistically significant.
• In a nut shell, this model is statistically significant, but we will have forecasting error of 97%.