Name of Author- Niraj Rajendra Ghangrekar (021230022767)
Introduction- Nelco Limited is a telecommunications and information technology company based in India. It was founded in 1995 and is a subsidiary of the Tata Group, one of India’s largest conglomerates. Nelco provides a wide range of products and services in the IT and telecom sectors, including satellite communications, broadband and internet services, managed services, and enterprise solutions. The company has a strong presence in both domestic and international markets and has won numerous awards for its innovative solutions and customer service.
Objective- To calculate the predicted value (β) and its significance
Data collection- The data used for analysis is collected from the site and after that Nelco Ltd. Equity (y) was regressed on Nifty 50 (x).
Data Analysis
Regression equation, β=0.145+1.878(x)
Where x represents the Nifty 50.
No. of observations (N)= 50
R²=0.2587, F=17.108
t-stat for x=4.136
The above equation tells us the relationship between Nelco Ltd. Equity (y) and Nifty 50 (x). The positive sign means there is a direct relationship between them, which means if Nifty 50 increases, then the equity price of Nelco Ltd. will also increase.
If the Nifty 50 rises by 1 point, then the Equity share price will also increase by 0.508 Rs.
T-stat for the Nifty 50 is 4.136 and the p-value is 0.000138 which is less than 0.01 means the data is statistically significant at a 1% confidence level.
N=50, there is a total of 50 observations.
R²=0.2587 means 25.87% of y is explained by x while the rest 74.13% is an error.