Title: – Relationship Between Nifty and Sree Rayalaseema Hi-Strength Hypo Limited

Author  Konkumutti Sravan Kumar

Introduction 
Sree Rayalaseema Hi-Strength Hypo Limited is an India-based company that is engaged in the manufacturing of industrial chemicals, generation of power and trading activities. The Company operates through three segments: Chemicals, Trading and Power generation. The Company generates power through wind, solar and thermal. The company is also a front-ranking producer of Monochloro Acetic Acid. Manufactured with the scientific crystallizer technology, the product meets international quality standards. Monochloro Acetic Acid is used by all leading manufacturers of Non-Steroid Anti-Inflammatory Drugs, other pharmaceuticals, pesticides, organic chemicals etc.

Objective 
Calculate Beta and its significance

Data Collection 
The raw data was downloaded from National Stock Exchange’s website. Data were edited, cleaned, and manipulated to find the closing price for each weekend. Then with help of this data weekly returns were calculated.

Data Analysis 

Equity Y = 1.505 * Nifty X + 1.159 + e
N = 49, R2 = 0.1534, F = 8.5190
The above equation tells us about the relationship between Equity weekly return Y and Nifty weekly return X. The positive sign means a direct relationship which means if the Nifty weekly return increases, then equities’ weekly return also increases and vice versa.
If Nifty’s weekly return increases by 1% then Equity’s weekly return increases by 1.505%. The T stat of b is shown in bracket i.e., 2.918 and the P value for this is 0.005379 which is less than 0.01 meaning b is statistically significant at a 1% level
N = 49 and R2 is 0.1534 which means 15.3% of Y is explained by X. Balance 51.5% is an error.
F is 8.519 and the P value for this is 0.005379 which is less than 0.01. Thus the overall model is significant at a 1% level

Conclusion 
The Beta is 1.505 i.e., greater than 1 means Oracle Financial Services Software Ltd is suitable for short-term investment.