Author: Amit Singh ROLL NO-0222056
Introduction:
ABB India Limited is a subsidiary of ABB Group, a global technology company headquartered in Zurich, Switzerland. ABB India is involved in various business segments, including power and automation technologies. Please note that there might have been developments or changes since then, so I recommend checking more recent sources for the latest information.
Objective:
To calculate beta of ABB Ltd and observe its significance.
Views and reviews:
ADRIAN GUGGISBERG Chairman
Megatrends and local impact These shifts of digitalization and e-commerce, electrification, energy efficiency, and sustainability, have helped to demonstrate our Company’s purpose as well as our operating model and strategy with our performance. In India more than 124 partners and customers – medium and large entrepreneurs have joined the global energy efficiency movement initiated by ABB thus formalizing their commitment to embark on a journey of energy optimization. ABB India with its experience and expertise will guide them along the journey.
Data collection:
Data for This Period (1/7/2022 to 30/6/2023) has been downloaded from NSE India Site and Weekly Closing Prices Where Found out Then Weekly Returns of Nifty a Weekly Return of ABB Ltd were Calculated (Nifty Returns Taken as X and Equity Return Taken As Y) Y Was Regress On X.
Data analysis:
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Equation y= -0.9270-0.670x+e |
(ABB Ltd =-0.9270-0.670 Nifty 50 + e)
T stat for b = -1.6985
R2 =0.0556
F= 2.8851
The above equation do not show any relationship between nifty 50 (X) and ABB India Ltd(Y). runs on own fundamentals the t stat for b is -1.6985 not statistically significant at 5 % level, R2is 0.0556 which means 5.56% Y is explained by X. 94.44% is the error in model. 2.8851 Which is less than the table value which means overall them model is not statistically significant at 5% level.
Conclusion:
The Beta Of The ABB India Ltd Is < 1 So The Company Is Good For Long Term Investment.