Title
Relationship of Reliance and Nifty 50
Author
Richa Malusare
Introduction:-
Reliance Industries Limited is an Indian multinational conglomerate company, headquartered in Mumbai. It has diverse businesses including energy, petrochemicals, natural gas, retail, telecommunications, mass media, and textiles. Reliance is one of the most profitable companies in India, the largest publicly traded company in India by market capitalisation,and the largest company in India as measured by revenue. It is also the tenth largest employer in India with over 236,000 employees. RIL has a market capitalization of US$243 billion as of March 31, 2022.
Objective
To calculate beta of Reliance and see its significance
Data collection
Data for this study has been downloaded from www.nseindia.com for NIFTY50 and equity of Reliance. Collected data taken from the time period of 1 Apr 2021 to 31 Mar 2022 then sorted to get weekly returns for both NIFTY50 as well as Reliance. In this research NIFTY50 is considered as ‘x’ variable and Reliance returns as ‘y’ variable.
Data analysis
Using the regression add-on in Microsoft excel data analytics tool below values were acquired
R square= 0.006341462
a = 0.437947099
b =0.120843624
F = 0.274423
P value =0.392813
Below expression shows the relation between Reliance returns and NIFTY50
Reliance Return= 0.437947099 + 0.120843624 NIFTY50
Conclusion
F is 0.274423 and p value is 0.392813 which shows that F value is greater than P value this overall model is statistically good and significant. So, Reliance is good company as it involve less risk in relation with NIFTY50