Title- Relationship between Nifty 50 and Rallis Ltd. Equity price.
Name of Author- Rutvik A. Sardal (021230022963)
Introduction- The company has established a presence across the value chain, with a healthy pipeline of sustainable products and services.
Rallis boasts of a robust product portfolio offering comprehensive crop care solutions, including formulations for crop protection and nutrition. It manufactures and markets a range of Agri-inputs, which include pesticides, fungicides, insecticides, seeds, and plant growth nutrients. The product portfolio under each category covers a broad spectrum of crop-related requirements.
Rallis has evolved its innovation strategy on ‘Serving Farmers through Science’. Accordingly, it develops innovative solutions to enable farmers to improve their productivity.
A strong distribution network with over 6000 + Dealers and 70000 + retailers reach a vast multitude of India’s farmers covering 80% districts and exports to over 58 countries: over various crop segments and across the cultural and linguistic borders.
Rallis India, a subsidiary of Tata Chemicals Limited which is a global company with interests in businesses that focus on LIFE: Living, Industry and Farm Essentials. The story of the company is about harnessing the fruits of science for goals that go beyond business.
Tata Chemicals is the world’s second largest producer of soda ash with manufacturing facilities in Asia, Europe, Africa, and North America. The company’s industry essentials product range provides key ingredients to some of the world’s largest manufacturers of glass, detergents, and other industrial products.
Objective- To calculate the predicted value (β) and its significance
Data collection- The data used for analysis is collected from the NSE site and after that Rallis Ltd. Equity (y) was regressed on Nifty 50 (x).
Data Analysis
Regression equation, β= -0.2001 + 1.2165(x)
Where x represents the Nifty 50.
No. of observations (N)= 50
R²=0.3162, F=22.6627
t-stat for x=0.255
The above equation tells us about the relationship between Rallis 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 Rallis Ltd. will also increase.
If the Nifty 50 rises by 1 point, then the Equity share price will also increase by 0.5623 Rs.
T-stat for the Nifty 50 is 4.099 and the p-value is 0.000017 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.
R²=0.3126 means 31.26% of y is explained by x while the rest 61.74% is an error.
