Title: Relationship Between Linde India Limited and Nifty-50

Author: Lakshmi Suresh Chalwadi

MMS (First year)

Introduction:

Linde India Limited is a listed public company incorporated on 24 January, 1935. It is classified as a public limited company and is located in Kolkata, West Bengal. The company operates as an industrial gases company in India. It operates in two segments, gases and related products and project engineering. Linde India Ltd is a leading supplier of gases and related products and services in India. The company is primarily engaged in manufacture of industrial and medical gases and construction of cryogenic and non-cryogenic air separation plants.

Objective:

Calculate the Beta of the “Linde India Limited” and see its significance.

Data collection:

We have downloaded the data of Linde India Limited and Nifty-50 dated from 1st April 2021 to 31st March 2022 from the website of National Stock Exchange. The data for this period, Nifty equity is downloaded by CSV file. Firstly, we have taken the data and after deleting all the column except date and closing stock we have added the weekday column in the data using weekday function of excel. Then we have added another column named as Return Column named as X for nifty and same Y for equity which will be regression.

Data Analysis:

Equation in the form of Y= a + b(X)

Y= Linde India Limited Returns (Equity)

X = Nifty- 50 Returns

a = intercept and b = slope

Hence the equation,

Y = 1.2256 + 0.8847 X

Linde Returns = 1.2256 + 0.8847 *(Nifty 50 Returns)

(2.0724)

N= 44, R2 = 0.0927 and F = 4.2948

Conclusion:

The above equation tells us the relationship between X & Y.

If x rises by 1 unit y will fall by 0.8847 and vice versa given figure (2.0724) is the t stat for b. The p value for which is (0.0444) which is less than 0.05 which means b is statistically significant at 5% level R2 is 0.0927 which means 0.92% of y is explained by X. F is 4.2948 and the 0.0444 which is less than 0.05 It means the overall model is statistically significant at 5% level.