Title: Relationship Between Spice Jet and Nifty-50

Author: Shreya Yogesh Jaiswal
MMS (First year)

SpiceJet Ltd was launched with an objective to deliver the lowest airfares with the highest consumer value, to price-sensitive consumers. The company has alliances with some of the best names known globally like Honeywell, Weber Seats, etc, to ensure the highest safety standards. SpiceJet provides services to cities namely Ahmedabad, Bag Dogra, Bangalore, Chennai, Coimbatore, Delhi, Goa, Guwahati, Hyderabad, Jaipur, Jammu, Kochi, Kolkata, Mumbai, Pune, Srinagar, Varanasi, and Vizag. The airline also brings out an in-flight entertainment magazine called `Spice Route`. The magazine features content related to travel and destinations in India; trendy food, recipes, and restaurants; covering art and culture across the nation including socially conscious citizens, and a section dedicated to children.

Calculate the Beta of the “Spice Jet” and see its significance.

Data collection:
We have downloaded the data of Spice Jet and Nifty-50 dated from 1st April 2021 to 31st March 2022 from the website of the 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 columns except the date and the closing stock we have added the weekday column in the data using the weekday function of excel. Then we have added another column named as Return Column named as X for nifty and the same Y for equity which will be regression.

Data Analysis:
Equation in the form of Y= a + b(X)
Y= Spice Jet (Equity)
X = Nifty- 50 Returns
a = intercept and b = slope
Hence the equation,
Y = -18.6209 + (-0.00068) X
Spice Jet Returns = -18.6209 + (-0.00068) *(Nifty 50 Returns)
N= 45, R2 = 0.011652 and F = 0.506954

The above equation tells us the relationship between X & Y.
If x rises by 1 unit y will fall by -0.00068 and vice versa given figure (-0.71201) is the t stat for b. The p value for which is (0.480306) which is not less than 0.05 which means b is not statistically significant at 5% level R2 is 0.011652 which means 1.16 % of y is explained by X. F is 0.506954 and the 0.480306 which is more than 0.05 It means the overall model is not statistically significant at 5% level.