Title: Relationship of Larsen and Toubro with the NIFTY 50 and to calculate beta.
Author: Lakshmi Vijayan
Objective: 1. to find the Relationship of Larsen and Toubro with the NIFTY 50
2. To calculate beta of Larsen and Toubro and see its significance.
Literature Review:
1. Most Supportive Company of INDIA
May 22, 2020 04:57 PM
Larsen and Toubro one of largest company of India and also in world wide. This is a professionally managed company. There is no single owner of this company and the company is run by some board of directors. Recently the MD and CEO of the Company is Mr. SNS. In this covid-19 situation L&T donated 150 crore to PM care fund and also take care of his 1, 60, 000 workers by giving them accommodation and food. Also L&T donated 40 crore for the medical kit for fight against covid-19. L&T give lots of benefits to the employees which is the most given by any company in India to his employees. Time to time salary, accommodation, mediclaim, bonus, PLR, travelling bill, phone bill, lots of are there. Economical and personal growth are very high in this company. L&T constructed lots of remarkable and top class construction of India like The Statue of Unity, MIAL international Airport, BIAL airport, and many more which is uncountable. So finally if anyone wants to join the company no doubt he or she can join without any hesitation. Hope L&T will serve India always like they always do.
2. The company for learners
Dec 02, 2009 05:12 PM
I have worked here for about 2.5 years in their design office at Chennai. In fact I started my career with this company. For fresher’s L&T is the best company to work for. You’ll be handed over responsibilities immediately after the incubation period which spans from 6 months to 1 year. Unlike other engineering organizations you’ll be involved in all activities simultaneously which improves confidence. The group in which I worked is the best to work in L&T Chennai. Those who have worked in other groups might have a different opinion. Actual working hours may be little longer than the officially declared working hours. But as you reach the manager level you will have the flexibility about timings. The thing which will irritate you is the beaurocracy practiced there. The thing which makes you bend your head will be the salary. But they have taken many measures to ensure that the salary is at par with the industry standards. It used to be highest paid organization once. Another plus point is that L&T has many very senior experienced loyal employees who have not worked anywhere else. Middle management is almost absent there. Apart from salary, other facilities are same that that of any government organization.

Data Collection:
Data for company and NIFTY has been downloaded from NSE site and then the Friday closing prices are been calculated.
Weekly returns were calculated.
The weekly NIFTY returns of were used as the x and of company was used as y.
Data Analysis:
Larsen and Toubro=0.002+0.442 NIFTY
n=47, R square= 0.52, F=49.99
If Nifty shares raise by 0.002 then L&T shares will rise by 0.442
Conclusion:
This gives a good model.