Regression Analysis of Weekly Returns between NIFTY50 and Sterlite Technologies Limited.
Author : Sana Maqsood Pathan
MBA HRM
Introduction :
Sterlite Technologies Limited (Formerly Sterlite Tech) is an Indian multinational technology company, headquartered in Mumbai. It is listed on Bombay Stock Exchange and National Stock Exchange of India. It has 636 patents and is active in over 150 countries. The company is specialized in optical fiber and cables, hyper-scale network design, and deployment and network software.
STL has also partnered with other industry entities to design, build and manage such cloud-native software-defined network. It also has offices in China, US, SEA, Europe and MEA. It has facilities in India, Italy, China and Brazil and two software-development centres. To give a boost to Indian government make in India initiative, STL recently invested in 5G assembling an ecosystem of partners.
Objective:
To Calculate beta of Sterlite technologies and see its significance.
Data Collection:
The data has been downloaded from the www.nseindia.com for Nifty 50 Sterlite Technologies Limited and for the period of 1 April 2021 to 31 MAR 2022. From the available data closing price and data where taken and other where deleted .Closing price and date where finding by using formula =weekday(date) and then day where sorted into Friday(5) to find out returns.
Once the data is calculated of Returns, for Nifty50 is considered as ‘X’ and Sterlite technologies.
Data Analysis:
Regression analysis were done using Excel’s Data Analysis we got below values.
R square= 0.007244178
a=0.35522346
b=0.130436452
F=0.322713
P value= 0.255431
Below expression shows the relation between returns Sterlite and NIFTY50 Sterlite Return= 0.35522346+0.130436452 NIFTY50.
Conclusion :
F is 0.322713 and p 0.255431 value is which shows that F value is greater than P value this overall model is statistically good and significant. So, Sterlite Technologies is good company as it involve less risk in relation with NIFTY50