Author: – RAJNANDINI
Introduction: Reliance Power Limited is a part of the Reliance Group, one of India’s largest business houses. The group operates across multiple sectors, including telecommunications, financial services, media and entertainment, infrastructure and energy. The energy sector companies include Reliance Infrastructure and Reliance Power.
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= 0.011 1.17 Niftyret X+ e
(t-sat= 0.0166)
N=49, R^2= 7.91, F=0.986
t-sat of b is shown in bracket is (0.0166).
The P-value for this is 0.986 which is more than 0.01 meaning ‘b’ is not statistically significant at 1% level.
N = 49
R^2 = 7.91 which means 17% of Y is explained by X and balanced 83% is unexplained i.e., error.
F= 0.986
P value for this is 0.986 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: –
RAJNANDINI-021230022743 -OSCM Batch