Submitted By: Bhuvaneashwari Lokhande (MBA- HR)
Roll No. : 011206
Relationship Between BPCL with nifty
Introduction- Bharat Petroleum Corporation Limited (BPCL) is an Indian government controlled oil and gas company headquartered in Mumbai, Maharashtra.The Corporation operates two large refineries of the country located in Kochi and Mumbai. The company is India’s 2nd largest downstream oil company and is ranked 275th on the Fortune list of the world’s biggest corporations as of 2019. BPCL ranked 672 in the Forbes 2018 list.
Objective-To determine the relationship between average weekly returns of Nifty 50 and. Bharat Petroleum Corporation Limited (BPCL) .
Data collection-Data has been downloaded from 1st Feburary,2019-31st January,2020.Friday closing price were found weekly price of NSE was X and for Page Industries was Y.
Data analysis- Y^= -0.44577+ 1.18234
I. t-stat for b= 3.10908
II. R2 = 0.16
III. F-test= 9.67
P value= 0.031
N=51
Description-
The above equation tells us the relationship between NIFTYFIFTY (X) and Bharat Petroleum Corporation Limited (BPCL) (Y)
If 1 unit of price of Nifty50 increases,the price of per share of Bharat Petroleum Corporation Limited (BPCL)will increase by Rs 1.18
Positive sign of means there is direct relationship which means if, price of Nifty50 rises the price of Bharat Petroleum Corporation Limited (BPCL) also rises and vice-versa.
I. The value of t stat is 3.10908.As per P value(0.031) which is less than 0.05,model is statistically significant at 5% level.
R2 =0.16 which means 16% of weekly return of Bharat Petroleum Corporation Limited (BPCL) depends on nifty50.Balance 84% are other factors which are not in the model.
F-Test=9.67Which means p value for which is less than 0.05 which means overall model is statistically significant.
Conculsion-The model is good and we can depend 16% on it