Title: Relationship between Nifty and Ashok Leyland
Author : Anand GR
Introduction:
Ashok Leyland is an Indian multinational automotive manufacturer, headquartered in Chennai. It is owned by the Hinduja Group. It was founded in 1948 as Ashok Motors and became Ashok Leyland in the year 1955.[4] Ashok Leyland is the second-most successful manufacturer of commercial vehicles in India (with a market share of 32.1% in 2016), the third-most successful manufacturer of buses in the world,[5] and the tenth-most successful manufacturer of trucks.
Objective: To calculate the Beta and its Significance.
Data Collection: Data for Equity & Nifty has been downloaded from NSEsite 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= 0.194+1.016 Niftyret X+ e
(t-sat= 4.375)
N=49, R^2= 0.289, F=19.148
t-sat of b is shown in bracket is (4.375).
The P-value for this is 6.687E-05 which is less than 0.05 meaning ‘b’ is statistically significant at 5% level.
N = 49
R^2 = 0.289 which means 2.89% of Y is explained by X and balanced 97.11% is unexplained i.e., error.
F= 19.148
P value for this is 6.687E-05 which is less than 0.05 which means that overall model is statistically significant at 5% level.
The above equation tells us about the relationship between Nifty and Equity returns.
Conclusion: – As Beta is less than 5% it is good for investment, if Beta is more than 5 it is not good for investment if Nifty rises.
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Anand GR -021230022465 -OSCM Batch