Title: – Relationship between the Nifty & Apollo Tyres Limited.
Author: – Ashish Indrabhushan Pandey
Introduction: – Apollo Tyres Limited is an Indian Multinational Tyre manufacturing company headquartered in Gurugram, Haryana. It was incorporated in 1972, and its first plant was commissioned in Perambra in Chalakudy, Kerala (India). The company now has five manufacturing units in India, one in Netherlands and one in Hungary. It has a network of nearly 5,000 dealerships in India, of which over 2,500 are exclusive outlets.
The company generates 69% of its revenues from India, 26% from Europe and 5% from other countries
Objective: – To calculate the Beta and its Significance.
Data Collection: – Data for Equity & Nifty has been downloaded from NSE site for the period from 01st Jan,2022 to 31st Dec 2022.The data was edited and manipulated to get Friday closing price, weekly returns were found out of Nifty was considered as” X” and weekly report of equity were considered as “Y”.
Data Analysis: – Demand Y= 0.799-0.288 Niftyret X+ e
(t-sat= -0.922)
N=49, R^2= 0.017, F=0.851
t-sat of b is shown in bracket is (-0.922).
The P-value for this is 0.360 which is more than 0.01 meaning ‘b’ is not statistically significant at 1% level.
N = 49
R^2 = 0.017 which means 17% of Y is explained by X and balanced 83% is unexplained i.e., error.
F= 0.851
P value for this is 0.360 which is more than 0.01 which means that overall model is not statistically significant at 1% level.
The above equation tells us about the relationship between Nifty and Equity returns. Negative (-) sign shows inverse relationship which means if market goes up share price goes up.
Conclusion: – As Beta is more than 1 it is good for investment, if Beta is less than 1 it is not good for investment if Nifty rises.
Report By: –
Ashish Indrabhushan Pandey -021230022645 -OSCM Batch