Title: Relationship between Nifty and Larsen & Toubro

Author: Leesha Bharat Patil

Larsen & Toubro Ltd, commonly known as L&T, is an Indian multinational conglomerate company, with business interests in engineering, construction, manufacturing, technology, information technology and financial services, headquartered in Mumbai. The company is counted among world’s top five construction companies. It was founded by Henning Holck-Larsen and Soren Kristian Toubro, who were two Danish engineers taking refuge in India.
As of 2020, L&T Group comprises 118 subsidiaries, 6 associates, 25 joint-venture and 35 joint operations companies, operating across basic and heavy engineering, construction, realty, manufacturing of capital goods, information technology, and financial services.

Objective: To calculate Beta and its significance

Data Collection: Data for equity and Nifty has been downloaded from NSE site for the period 1st 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 Equity was considered as “Y”.
Data analysis: Demand Y =0.185-0.967 Niftyret x + e
(t-stat =20.86)
N= 49, R^2= 0.900, F=435.16
The P-value for this is 1.028 which is less than 0.05 meaning ‘b’ is statistically significant at 5% level.
The above relationship tells us the relationship between Nifty and Equity returns.
Conclusion: As Beta is more than 5 it is good for investment, if beta is less than 5 then it is not good for investment.

Report by:
Leesha Bharat Patil- 021230022269 – OSCM Batch