Title- Relationship between Nifty 50 and PVR Ltd Equity price.

Name of Author- Parth Panchal (021230022341)

PVR Cinemas has its origin as Priya Cinema in Vasant Vihar, Delhi, the Cinema was named after Priya Jaisinghani and was bought by Ajay Bijli’s father in 1978, who also owned a trucking business, Amritsar Transport Co. In 1988, Bijli took over the running of the cinema hall, which was revamped in 1990, and its success led to the founding PVR Cinemas.
PVR Cinemas is one of the premium multiplex chain of theatres operating in India and Sri Lanka. They are known for their quality in terms of the viewing experience. PVR Cinemas was established in 1997 by Ajay Bijli. The company also has a separate wing called PVR Pictures that deals with movie production and distribution. Here is the inspiring success story of PVR Cinemas and its founder Ajay Bijli. The article also contains the growth, start-up story, funding and challenges faced by the company over the years.

Objective- To calculate the predicted value (B) and its significance

Data collection- The data used for analysis is collected from the NSE site and after that PVR Ltd. Equity (y) was regressed on Nifty 50 (x).

Data Analysis-
Regression equation, B= 0.50905 + 1.00574 (x)
Where (×) represents the Nifty 50.
No. of observations (N) = 50
R square=0.21856, F=13.705213
t-stat for x=3.702055
The above equation tells us about the relationship between PVR 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 PVR Ltd. will also increase.
If the Nifty 50 rises by 1 point, then the Equity share price will also increase by Rs. 0.46751

T-stat for the Nifty 50 is 3.70205 and the p-value is 0.000542 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.
R Square=0.21856 means 21.85% of y is explained by x while the rest 78.15% is an error.