TITLE: RELATIONSHIP OF BHEL WITH NIFTY
AUTHOR: BHAVYA SHARMA
INTRODUCTION: Bharat Heavy Electricals Limited (BHEL) is an Indian central public sector undertaking and the largest government-owned power generation equipment manufacturer. It is under the ownership of Government of India and administrative control of the Ministry of Heavy Industries. Established in 1956, BHEL is based in New Delhi.
OBJECTIVE: Calculation of Beta of BHEL & Significance.
LITERATURE REVIEW:
1. Small Wall Blowing System
Smart Wall Blowing System (SWBS), the new product, performed the wall-blowing operation on detecting a decrease in furnace heat transfer. It operated blowers only in the regions where it had detected ash deposit impeding heat transfer. SWBS was automatic and required no manual intervention. The decisions to start/stop and operate/skip the blowing operation depended on analysing relevant data. (Kumar, Dhanuskodi & Kalippan,2020)
2. Leadership
From the Service Profit Chain, it is established that a factor that affects employee satisfaction
is the leadership within the organization. The study concluded that a statistical significant relationship exists between transformational leadership and some factors of employee satisfaction. It found that a statistically significant relationship exists between leadership style
and employee satisfaction levels in BHEL. (Kumari & Singh,2019)
DATA COLLECTION:
Data was collected from Yahoo Finance site of the period 1st April 2022 to 31st March 2023. Then it was manipulated by finding the Friday Closing Price. Then, X & Y & Regression (weekly return of Nifty is X & weekly return of BHEL is Y).
DATA ANALYSIS:
BHEL’s Return = 0.7122 +1.8682 Nifty Returns
(5.5170)
N = 52, R^2 =0.3784, F =30.4370, Significance = 1.21994824302474E-06
RESULT:
The above equation shows the relationship between weekly return’s of BHEL(Y) & weekly return’s of Nifty(X). Positive sign means there is direct relationship which means if X rises then Y also rises & vice versa.
In this equation, b= 1.8682, if X rises by 1 unit then demand will rise by 1.8682 units. Figure in bracket is t-stat for b. It is more than table value so b is statistically significant at 5% level of Y.
R^2 is 0.3784 which means 37.84% of Y is explained by X. Similarly X is 30.4370 which is also more than table value means overall model is 5% level.
CONCLUSION: Beta of BHEL is 1. 8682. It is good for short term investments.
REFERENCE:
1. Abhishek Kumar & R. Dhanuskodi & R. Kaliappan & K. Nandakumar, 2020. “BHEL Smart Wall Blowing System: New Product Development in Manufacturing Industry,” Vikalpa: The Journal for Decision Makers, , vol. 45(4), pages 240-249, December,2020.
2. Neeraj Kumari & Devi Singh, 2019. “Required Leadership Traits for an Organizational Success,” International Journal of Human Resource Studies, Macrothink Institute, vol. 9(3), pages 353-368, December,2019.