• Title: Relationship of NOCIL LIMITED with Nifty

• Author: Namira Vasta – JDBIMS – MBA Human Resources

Introduction:

NOCIL LIMITED is a part of the AMG (Arvind Mafatlal Group) of Industries, a well-known Business House of India having diversified business interests. NOCIL commenced Rubber Chemicals production in the year 1975. Situated in a designated ‘Chemicals Zone’ about 40 km away from Mumbai City; NOCIL today is the Largest Rubber Chemicals Manufacturer in India with the State-of-the-Art Technology for the manufacture of PILFLEX, Anti-degradants, PILNOX, Antioxidants, PILCURE, Accelerators, Post Vulcanization Stabilizer and PILGARD, Pre-Vulcanization Inhibitor.

• Objective:

To Calculate the beta of NOCIL LIMITED and see its significance

• Data Collection:

I. Secondary Research was done in order to collect relevant data about the company’s financial performance along with NIFTY 50 data

II. The data of the company and Nifty 50 has been downloaded from nseindia.com

III. The data of the company was regressed with Nifty 50 using data analysis technique.

IV. Independent Variable (X) – Nifty Data & Dependent Variable (Y) – Company data.

• Data Analysis:

Y^ = 0.1529+ 1.1749x

In the data, n = 45 ; R^2= 0.201881059; F Value = 10.8767

The above regression equation tells us the relationship between X and Y.
From the equation, it can be seen if X rises by 1 unit, Y will fall by 0.99 units and vice versa.

The figure in bracket is t-stats for b (3.2980), which is less than the table value , which implies that b is not statistically significant at 5% level.

R^2 0.201881059 which means 20.19% is of Y is explained by X and the balance is error.

F = 10.8767 which is less than the table value, which means overall model is not significant at 5% level

Conclusion:

We can conclude based on the data analysis performed, that only 20% of NOCIL LIMITED can be explained by Nifty 50 and the policies of NOCIL LIMITED is responsible for the remaining. b value is not significant because the F value is lesser than table value.