Author: Sravani Samudrala
Introduction:
An Indian manufacturer of blended fabrics and apparel with a network of retail stores and branded showrooms is Siyaram Silk Mills, Ltd., also known as Siyaram’s and SSM. The Kamala Mills complex in Lower Parel, Mumbai, where Siyaram’s was established in 1978 serves as the location of the company’s headquarters.
The Siyaram Poddar Group includes Balkrishna Industries Ltd. and Govind Rubber Ltd., both of which are listed on the Bombay Stock Exchange, in addition to Siyaram Silk Mills Ltd. (SSM). SSM is a small-cap firm with a market capitalization of 936.75 crores. Siyaram’s produces and sells yarns, ready-to-wear for men and women, home furnishings, and fabrics. Siyaram’s is affiliated with over 1 lakh retail establishments and has over 170 brand-name showrooms scattered across the nation.
Objective:
To find our relationship between NIFTY 50 and Siyaram Silk Mills Limited Equity.
Data Collection:
The NIFTY50 and Siyaram Silk Mills Limited equity data were downloaded from the NSE website for a one-year period beginning on January 1, 2022 and ending on December 31, 2022.
Data Analysis:
Demand Y = 0.5524+0.8159X+ e
(t- stat= 1.7167)
N= 48, R2 = 0.0578, F= 2.9468
Where y = Equity return, x = Nifty return.
t- stat of b is shown in the bracket as (1.7167).
The P- value for this is 0.092 which is more than 0.05 meaning ‘b’ is statistically not significant at the 5% level.
N=48
R2 = 0.0578 which means 5.78% of Y is explained by X and balanced 94.2% is unexplained i.e., error.
F= 2.9468
The p-value for this is 0.092 which is more than 0.05 which means that the overall mode is statistically insignificant at the 5% level.
The above equation tells us about the relationship between Nifty and Equity returns. A positive sign shows direct relationship which means if market goes up share price goes down.
Conclusion:
As can be seen from the regression equation above, the beta is 0.5524 which is less than 1, indicating that it is not suitable for short-term investment.
Report By: Sravani Samudrala – 021230022037- Fintech Batch.