NAME – VAIBHAV MUKIM
SAPID – 80012100116
DIVISION A
Relation between NIFTY and V2 Retail
Introduction:
V2 Retail Ltd is a portal for all your fashion, lifestyle & home needs. V2 Retail Ltd aims
at providing a hassle free and enjoyable shopping experience to shoppers across the
country with the widest variety of products at best of its value. At V2 Retail Ltd we
strive to achieve the highest level of “Customer Satisfaction” possible. Our cutting-
edge E-commerce platform, highly experienced buying team, agile warehouse
systems and state of the art customer care centre provides customer with V2 Quality
Assurance experience.
Objective:
To calculate the Beta value and find its significance.
Data collection:
The data was gathered from a secondary source, the NSE’s official website. Data on the
NSE’s daily closing stock price and the bank SBI has been gathered. The data has been
narrowed down to the weekend (Friday) closing price only.
Data Analysis:
Regression Equation:
Regression Statistics
Multiple R 0.775826383
R Square 0.601906577
Adjusted R Square 0.592196981
Standard Error 15.0529401
Observations 47
Interpretations:
Here, we can observe that the R square value is 0.414110003, meaning that the 41.4% of
weekly returns of SBI can be explained by Nifty, which is comparatively higher than most
industry trends. We can conclude that SBI does follows the Nifty trend.
ANOVA
df SS MS F
Significance
F
Regression 1 14046.5804 14046.5804 61.99090011 9.92E-10
Residual 41 9290.231231 226.5910056
Total 42 23336.81163
Interpretations:
H0: Nifty is not influencing the weekly returns of V2 Retail.
H1: Nifty is influencing the weekly returns of V2 Retail.
Here as the F value is 61.99090011 which is more than 4, thus we reject the null hypothesis
and accept the alternate hypothesis, concluding that nifty is influencing the weekly returns of
V2 Retail Industries.
Also, the Significance F value is 0.000451232 which is less than 0.05 thus the model is
significant.
Coefficients Standa
rd
Error
t Stat P-
value
Lower
95%
Upper
95%
Lower
95.0%
Upper
95.0%
Intercept -130.2219333 34.135
86953
–
3.8148
12251
0.0004
51232
–
199.16
07204
–
61.283
14621
–
199.16
07204
–
61.283
14621
Closing
price of
NIFTY
0.016213217 0.0020
59232
7.8734
30009
9.92E-
10
0.0120
54514
0.0203
7192
0.0120
54514
0.0203
7192
Interpretations:
We can observe here that the Beta value is 0.016213217 meaning that 1 unit change in Nifty
leads to 0.016213217 change in weekly returns of SBI. Also, the value of beta is positive
indicating the presence of a positive relationship between the two variables.
P value is 0.000451232 which is less than .05 thus the model is significant at 95% confidence
interval.