TITLE – Relationship between Adani power with Nifty 50 and to calculate beta

AUTHOR- Amruta Sargar

OBJECTIVE-To calculate Beta of Adani Power and see its significance.

LITERATURE REVIEW

Impact
The Indian economy is among the fastest-growing economies in the world. Since liberalization, the Indian economic and financial system is transitioning towards a development into a self-sustained system, facilitating balanced growth across all sectors and segments. Beginning with the delicensing of some sectors (in 1990), India’s market capitalization at present accounts for three quarters of its nominal GDP1. About 8000 listed companies exist, channelizing the investment of millions of Indian and foreign investors.(Agarwal,18) The increase in investors’ participation in the Indian capital market at NSE in recent years is provided in Figure 1. As shown, there has been a consistent rise in participation by retail individuals, proprietary firms, partnership firms, LLPs, Trust/Societies, AIF, Depository receipts, PMS clients, Statutory, FDI, OCB, FNs, OFIs, VC Funds, NBEF, etc. (Figure 1). As for the Security and Exchange Board of India, in the last decade, there has been a 100% increase in the Demat accounts, from 19 million in 2011 to 40.8 million in March 2020. Since the opening of the Indian Stock market for foreign investors, there has been a consistent rise in FDIs. With the onset of the pandemic, global financial conditions tightened sharply, precipitating a selloff by portfolio investors, unprecedented both in scale and pace. As per the RBI Financial Stability Report 2020, due to the lack of liquidity in debt markets, mutual funds (MFs) faced high redemption pressures during Q1:2020–21.

Review
However, a series of efforts have been made by stakeholders to improve access of the SMEs to finance in Nigeria. For instance, the governments have established some development banks like the Bank of Industry, Bank of Agriculture, and Microfinance Banks among others to make funds available to the SMEs with less cost and less stringent conditions. Apart from this, some credit allocation schemes championed by SMED AN and the government have been put in place to improve access to finance by SMEs. These efforts appear not to be working owing to the persistent fall in the performance of the SMEs and their incessant exits from business due to lack of funds. Could these two markets in the financial system of Nigeria be held responsible for the problems confronting the SMEs regarding access to finance? This is a pertinent question to be answered by this study.Several studies have assessed issues relating to finance and their source in Nigeria but many of them did not focus on the two markets namely the capital and the money markets (Oke & Aluko, 2015; Eferakeya, 2014).

DATA COLLECTION
https://www1.nseindia.com/products/content/equities/equities/eq_security.htm

DATA ANALYSIS-

SUMMARY OUTPUT

Regression Statistics

Multiple R
0.833956281

R Square
0.6954830786

Adjusted R Square
0.6885622395

Standard Error
16.85811168

Observations
46

ANOVA

df
SS
MS
F
Significance F

Regression
1
28559.17562
28559.17562
100.4911495
0

Residual
44
12504.6209
284.1959295

Total
45
41063.79652

Coefficients
Standard Error
t Stat
P-value
Lower 95%
Upper 95%
Lower 95%
Upper 95%

Intercept
-255.1922303
22.70942428
-11.23728313
0
-300.960067
-209.4243936
-300.960067
-209.4243936

X Variable 1
0.01603260694
0.001599337935
10.02452739
0
0.01280935317
0.01925586071
0.01280935317
0.01925586071

CONCLUSION-

i’=0.01603260694 – (-255.1922303)
n=7 ,Rsquare=0.69,F=100.49

The Above equation tells us the relationship between Y(demand) and X(price) negative sign means it has a reverse relationship if price rises demand falls and if prices falls demand rises .As B is-255.5 ~2.5 if X rises 1 unit demand we fall Y by 2.5 unit And ViceVersa. t-stat for B is -11.23 And P value is less than -0.5 rather it is less than 0.1 which means B is statistically significant at 1% level. RSquare is 0.69 which means 92% Variance in demand is explained by F 100.49 And PValue is less than 0.1 which means overall this model is Statistically Significant at 1% level.

REFERENCE

Agrawal, Anshu. Journal of Risk and Financial Management; Basel Vol. 14, Iss. 9, (2021): 413.
DOI:10.3390/jrfm14090413

Oke, M., Aluko, О., (2015), Impact of commercial banks on small and medium enterprises financing in Nigeria, IOSR Journal of Business and Management, 17(4), 23-26.