Regression Analysis of Weekly Returns between Glenmark Company & Nifty 50.

Title : Relationship between Glenmark Company and Nifty 50

Name of the Author : Gayatri Hasabnis, MA Economics student at SNDT University.

Glenmark is a research-based, global pharmaceutical company with 15 manufacturing facilities and 3 R&D centers dedicated to the goal of enriching lives across the globe.

Objective : To find out the Beta of the company and observe it’s significance.

Data collection : The data for Glenmark Pvt Ltd and nifty 50 was taken from NSE Website (www.nseindia.com). The data downloaded in csv format from 1st January 2019 to 31st December 2019. The closings prices of Fridays was segregated from the year to find of weekly returns of the company and nifty 50. The weekly returns of Nifty 50 is considered as (Y) and the weekly returns of company is considered as (X). H0 is b is equal to zero and H1 is b is not equal to zero.

Data analysis : The regression analysis driven by the Microsoft Office – Excel (Data Analysis). Firstly, finding out the estimated regression equation i.e. – 0.00018 + 0.0626X + e. Where a = -0.00018 , b = 0.0626. The R Square = 1.0045 and F test = 3.565. The t stats is 12.27. The P value is 1.

Equation : – 0.00018 + 0.0626X + e. N = 245, R Square = 1.0045, F = 3.565

Conclusion : The above equation shows us the relationship between Company’s Weekly returns and Nifty 50’s weekly returns. If the Company’s weekly returns rises by one unit then the Nifty 50 will rise by 0.0626 units. (0.0626X). There is a positive relationship between the X and Y as the positive sign shows the positivity. As the company’s returns rises nifty rises and vice versa. T stats for b is 12.27. The P value is more than 0.05 so the H0 is accepted as it’s statistical not significant. The R Square is 1.0045 which is of company and explained by the nifty 50. The F test is = 3.565 and P value is more than 0.05 than the overall model is statistically insignificant.