Relationship Between NCL INDIA & Nifty-50

AUTHOR- Nayan Narayan Patil (MMS)
Popularly known as NCL, a constituent member of the Council of Scientific & Industrial Research (CSIR) India, it was established in 1950. Dr Ashish Lele is the Director of NCL and took charge on April 1, 2021.[1] There are approximately 200 scientific staff working here. The interdisciplinary research center has a wide research scope and specializes in polymer science, organic chemistry, catalysis, materials chemistry, chemical engineering, biochemical sciences and process development. It houses good infrastructure for measurement science and chemical information. National Collection of Industrial Microorganisms (NCIM)[2] is located here and is a microbial culture repository maintaining a variety of industrially important microbial culture stock. There are about 400 graduate students pursuing research towards doctoral degree; about 50 students are awarded Ph.D. degree every year; and the young talent pool adds in every few years. NCL publishes over 400 research papers annually in the field of chemical sciences and over 60 patents worldwide.[citation needed] It is a unique source of research education producing the largest number of PhDs in chemical sciences within India.[
Calculate the Beta of the “NCL INDIA’” and see its significance.

Data collection
We have downloaded the data of NCL INDIA 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= NCL INDIA (Equity)
X = Nifty- 50 Returns
a = intercept and b = slope
Hence the equation,
Y = 0.1288 + (0.6198) X
Cipla Returns = 0.1288+(0.6198) *(Nifty 50 Returns)
N= 44, R2 = 0.07251 and F = 3.2835

The above equation tells us the relationship between X & Y. IF X rises by 1 unit, Y will fall by (0.6198) and vice versa given figure (0.1701) is the t stat for b. The p-value for which is (0.077) which is greater than 0.05 which means b is statistically insignificant at 5% level. R^2 is (0.0725) which means 0.72% of y is explained by X. F is (3.2835) and p value for which is (0.077) which is greater than 0.05 it means overall model is statistically insignificant at 5 % level.