Author: – Deep Sanjaykumar Mehta
Introduction: – Deepak Nitrate is one of India’s leading and fastest growing chemical intermediates manufacturing companies. During our five decades of existence, we have consistently delivered on the expectations of all stakeholders. We are a preferred partner for leading downstream companies across 30 countries in 6 continents, who trust us for our quality, supply reliability, environmentally sustainable operations, and ability to meet their evolving needs. The company’s manufacturing facilities are located at Nandesari and Dahej in Gujarat, Roha and Taloja in Maharashtra and Hyderabad in Telangana. Deepak Nitrite produces a spectrum of chemicals, including agrochemicals, colourants, rubber, pharmaceuticals, speciality and fine chemicals.
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: – Equity_ret Y= -0.3704-0.4143 Nifty_ret X+ e
(t-sat= -1.3234)
N=49, R2 = 0.0359, F=1.7514
t-sat of b is shown in bracket is (-1.3234).
The P-value for this is 0.1921 which is more than 0.05 meaning ‘b’ is not statistically significant at 5% level.
N = 49
R2= 0.0359 which means 3.6% of Y is explained by X and balanced 96.4% is unexplained i.e., error.
F= 1.7514
p-value for this is 0.1921 which is more than 0.05 which means that overall model is not statistically significant at 5% level.
The above equation tells us about the relationship between Nifty and Equity returns. Negative (-) sign shows inverse relationship which means if the market goes up share price goes down.
Conclusion: – As Beta is less than 1 it is not good for investment if Nifty rises, if Beta is more than 1 it is good for investment
Report By: – Deep Mehta – 021230022247 -OMSCM Batch