Report
Title: Relationship of Maruti Suzuki India Limited with Nifty 50
Author: Monalika Nilkanth Donekar
Introduction:
Maruti Suzuki India Limited, formerly known as Maruti Udyog Limited, is an Indian automobile manufacturer, based in New Delhi. It was founded in 1981 and owned by the Government of India until 2003, when it was sold to the Japanese automaker Suzuki Motor Corporation. As of February 2022, Maruti Suzuki has a market share of 44.2 percent in the Indian passenger car market.
Objective:
Calculate beta of the Maruti Suzuki India Limited and see its significance.
Data Collection:
Firstly, i have downloaded the data of Voltas and Nifty-50 dated from 1st April 2021 to 31st March 2022 from the website of National Stock Exchange(nseindia.com). Firstly, i have taken the data of Nifty-50 and after deleting all the column except date and closing stock, i have added the weekday column in the data using weekday function of excel, then we have deleted all rows except the 5th day (Friday) rows. Then we have added another column named as Returns column where we have found the returns by using the values in closing stock column and named it as X (which will be X for regression also). Similarly repeating all these steps for our selected company, i named it as Y (which will be Y for regression also). Here is how i have collected the X and Y values.
Data Analysis:
We can write the equation in the form of Y = a + b(X)
Where, Y = Voltas Returns
X = Nifty-50 Returns
a = intercept and b = slope
Hence, the equation becomes,
Y = 0.029493 + (0.628871) *X
Maruti Suzuki India Limited = (0.029493) + (0.628871) *(Nifty-50 Returns)
(2.741757)
n = 45 R2 = 0.148805 and F = 7.517232
Conclusion:
The above equation in the Data analysis explains us the relationship between X (Nifty-50 Returns) and Y (Maruti Suzuki India Limited).
If X rises by 1 unit, then Y will rise by 0.628871 units and vice versa.
Figure in bracket just below the equation i.e. (2.741757) is the value for t-stat for b.
R2 is 0.148805 which means 14.88% of Y is explained by X and remaining 85.12% is error.
The value of significance F is 7.517232, which is greater than 0.05, which means that the relationship between the two variables i.e. Returns of Maruti Suzuki India limited and Returns of Nifty-50 is statistically not significant at 5% significant level (or 95% confidence level).