Title- Relationship between Nifty 50 and Kama Holdings LTD. Equity price.
Name of Author- Kaustubh Chakravarti (021230022362)
Batch-IFM
Introduction- KAMA Holdings Ltd is a core investment company while the principal activities of its subsidiaries are manufacturing, purchasing, and sale of technical textiles, chemicals, packaging films, and other polymers. Business Segments
The Company receives revenue from the activities of its subsidiary companies.
Technical Textiles business: Nylon tire cord fabric, belting fabric, polyester tire cord fabric,
Objective- To calculate the predicted value (β) and its significance
Data collection- The data used for analysis is collected from the NSE site and after that Kama Holdings Ltd. Equity (y) was regressed on Nifty 50 (x).
Data Analysis
Regression equation, β= 0.362119959 + 1.408608891 (x)
Where x represents the Nifty 50.
No. of observations (N)= 50
R²=0.4164, F=34.2593
t-stat for x=5.8531
The above equation tells us about the relationship between Kama holdings 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 Kama holdings ltd. will also increase.
If the Nifty 50 rises by 1 point, then the Equity share price will also increase by 1.4086 Rs.
T-stat for the Nifty 50 is 5.8531 and the p-value is 4.19915E-07 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=0.4164 means 41.64% of y is explained by x while the rest 58.36% is still unexplained.