Author- Bhavika Dogra
Introduction-
Bajaj Finserv the financial service arm of Bajaj group was formed in 2007 post the demerger from Bajaj Auto. Bajaj Finserv Ltd is currently engaged in lending, protection and saving, and digital and online platforms offering a wide array of financial products and services in India. Bajaj Finserv through its operating companies serves millions of customers in the financial services space by providing financing option for multiple needs, Investment and saving options, asset protection through general insurance, family protection and income protection in the form of life and health insurance and retirement and savings solutions.
Objectives-
Relationship of Bajaj Finance company with Nifty 50
To calculate Beta of Bajaj Finance company and see its significance
Data collection-
Closing Friday price were calculated by:
Data for this company Bajaj finance has collected from NSE. Date and closing prices of Bajaj finance has been downloaded from nseindia.com ( Indices & Equity- Historical data)
Friday closing prices were calculated in week-returns.
Indices is taken as (X) and Equity is taken by (Y).
Insert one column in between the Date & Closing price column and write the formula for number ( weekday,2) then sort by A to Z and only take Friday values and insert the weekly return column with formula .(C3-C2)/C2*100
Then to put the regression from data analysis we will get the values of Bajaj Finance.
Data Analysis-
Regression Statistics
Multiple R 0.974172
R Square 0.949011
Adjusted R Square 0.947825
Standard Error 188.25
Observations 45
ANOVA
df SS MS F Significance F
Regression 1 28361787 28361787 800.3199 2.01E-29
Residual 43 1523837 35438.06
Total 44 29885623
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept -5771.93 435.9107 -13.2411 9.05E-17 -6651.03 -4892.83 -6651.03 -4892.83
x 0.746449 0.026386 28.28993 2.01E-29 0.693237 0.79966 0.693237 0.79966
Y= a+bx
A= -5771.93
B= 0.747
Y= -5771.93-0.747x
T stat= 28.28
So, P value is less than 0.05. The model is significant @ 5%