AUTHOR: Shrutika Shinde (10022)
INTRODUCTION: COMPANY-Established in 1994, Share India was incepted with the idea of steady growth today to continue multiplying in the future. They are the frontrunners in providing algo-trading solutions to clients in India and abroad. They have been catering to the HNI segment, however, we want our retail segment to cater to the new-age investors. They have managed to expand our services helping our customers grow and multiply their investments. Their transparent, clear, honest and customer-centric approach has enabled Share India to gain the trust of India. The expertise they have garnered over the years has been focused on serving India in a better way.
BETA – The beta regression is a widely known statistical model when the response (or the dependent) variable has the form of fractions or percentages. In most of the situations in beta regression, the explanatory variables are related to each other which is commonly known as the multicollinearity problem.
OBJECTIVE: Calculation of Beta of Share India Company and its significance.
LITERATURE REVIEW: Nifty Next 50 has a higher return compared to Nifty 50, with an average of 10.06% per year. Both Nifty 50 and Nifty Next 50 are overvalued based on P/E ratio compared to Sensex 30. Nifty 50 is less volatile than Nifty Next 50 based on P/B ratio. Nifty Next 50 has a higher standard deviation, beta, Sharpe ratio, Treynor ratio, and alpha than Nifty 50. Both indices have a highly positive correlation and can give positive returns if the benchmark does the same.Nifty Next 50 has a higher return compared to Nifty 50, with an average of 10.06% per year. Both Nifty 50 and Nifty Next 50 are overvalued based on P/E ratio compared to Sensex 30. Nifty 50 is less volatile than Nifty Next 50 based on P/B ratio. Nifty Next 50 has a higher standard deviation, beta, Sharpe ratio, Treynor ratio, and alpha than Nifty 50. Both indices have a highly positive correlation and can give positive returns if the benchmark does the same. (Bhargavkumar , 2018)
The stock market is where trading of listed and unlisted company stocks takes place and includes all national stock exchanges. It is important for listed companies to meet investor expectations, and investors should choose a portfolio based on risk and return proportion. ( Saranya, 2018)
DATA COLLECTION: Data was collected from NSE site from 1st April 2022 to 31st March 2023. Then the data was manipulated by Friday closing price and the weekly returns were calculated. X was closing price and Y was weekly returns. Y was regressed on X.
DATA ANALYSIS: Equation – Company Returns= 0.45+0.95nifty returns
N=51, R^2 = 0.126, F= 7.085, SL=0.05
Result- The above equation shows the relation between Y and X . It is positive means there is a direct relationship which means if X rises Y also rises. In this equation b=0.95 , if X rises by 1units demand will rise by 0.95units . As t stat value for b(= 2.66) is more than the table value so b is statistically significant at 5% level. R^2 = 0.126 which means 12.6% Y is explained by X similarly F = 7.085 which is also more than the table value which means overall model is statistically significant at 5% SL.
CONCLUSION: Beta is less than 1 it is stable and good for long term investment.
REFERENCE: Bhargavkumar R. Paghadal “Performance Analysis of the Index : Nifty 50 & Nifty Next 50”, International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 7, page no.1036-1040, July-2018
SARANYA K, PARTHIBAN T, “A STUDY ON PERFORMANCE EVALUATION OF INFORMATION TECHNOLOGY SECTOR SHARES IN INDIAN STOCK MARKET WITH SPECIAL REFERENCE TO BSE.”, International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.5, Issue 12, page no.327-334, December-2018