Author: Nidhi Sinha, PGDM – IFM, 021230022293.
Introduction: Nestlé India Limited is the Indian subsidiary of Nestlé which is a Swiss multinational company. The company is headquartered in Gurgaon, Haryana. The company’s products include food, beverages, chocolate, and confectioneries.

The company was incorporated on 28 March 1959 and was promoted by Nestle Alimentana S.A. via a subsidiary, Nestle Holdings Ltd. As of 2020, the parent company Nestlé owns 62.76% of Nestlé India. The company has 9 production facilities in various locations across India.
Objective: To calculate the Beta and its Significance.

Data Collection: Data for Equity & Nifty has been downloaded from NSE site for the period from 01st Jan,2022 to 31st Dec 2022.The data was edited and manipulated to get Friday closing price, weekly returns were found out of Nifty was considered as” X” and weekly report of equity were considered as “Y”.

Data Analysis:

Demand Y= 0.00298 – 0.375 NIFTY RET (X) + e
(t-sat= -2.3139)
N=49, R^2= 0.1023, F=5.3542
t-sat of b is shown in bracket is (-2.3139).
The P-value for this is 0.0251 which is less than 0.05 meaning ‘b’ is statistically significant at 5% level.
N = 49
R^2 = 0.1023 which means 10.23% of Y is explained by X and balance 89.77% is unexplained i.e., error.
F= 5.3542
P value for this is 0.0251 which is less than 0.05 which means that overall model is statistically significant at 5% level.
The above equation tells us about the relationship between Nifty and Equity returns. Negative (-) sign shows inverse relationship which means if market goes up share price goes up.

As Beta is more than 1 it is good for investment, if Beta is less than 1 it is not good for investment if Nifty rises.