Title: – Relationship between the Nifty & Bharat Petroleum Corporation Limited

Author: – Bharat Dagur

Introduction: – Bharat Petroleum Corporation (BPCL) traces its history to 1928 when the Burmah Shell Oil Storage & Distribution Company of India was incorporated in England to enter the petroleum products business in India. The Company was incorporated on 3rd November 1952 under the name Burmah shell Refineries Limited (BSR). The entire operations of Burmah Shell in India were nationalised in 1976 and the Refinery and Marketing Companies were merged to form BPCL.
In the year 1992, 20% of the shares were sold by the govt. to various fianancial institutions and Mutual Funds. Thus, presently the President of India holds 80% of the paid-up capital.

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= -0.367+0.994 Nifty ret X+ e
(t-sat= 33.733)
N=50, R^2= 0.959, significance F=4.3659E-05
t-sat of b is shown in bracket is (33.733).
The P-value for this is 4.3659E-05 which is less than 0.05 meaning ‘b’ is statistically significant at 5% level.
N = 50
R^2 = 0.959 which means 9.59% of Y is explained by X and balanced 90.41% is unexplained i.e., error.
Significance F= 4.3659E-05
P value for this is 4.3659E-05 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.

Conclusion: – As Beta is less than 5% it is good for investment, if Beta is more than 5% it is not good for investment if Nifty rises.

Report By: –
Bharat Dagur -OSCM Batch