Title: – Relationship of with Tata Communications Limited Nifty 50
Author: – Tanvi Pandit Waghmare (MMS First Year, Roll no. 0222127)
Kohinoor Business School, Kurla.
Introduction: – Tata Communications Limited is a global telecommunications and digital infrastructure company that provides a comprehensive range of communication services and solutions to businesses, governments, and individuals around the world. Established as part of the Tata Group, one of India’s largest and oldest conglomerates, Tata Communications has emerged as a key player in the global telecommunications landscape.The company’s origins can be traced back to the late 19th century, with the founding of the Tata Group by visionary entrepreneur Jamsetji Tata. Tata Communications, previously known as VSNL (Videsh Sanchar Nigam Limited), began its journey in the early 1980s by focusing on international telecommunication services, connecting India with the rest of the world.
Objective: – To Calculate the Beta of Tata Communications Limited and find out its significance.
Views and Reviews: – Mysore Madhusudhan, Executive Vice President said that,
Connectivity is a key ingredient in today’s fast-paced digital world. An internet that is fast, secure and available at all times is of paramount importance to customers, whether they are individuals or an enterprise.
We are excited to introduce our newest capability in 5G roaming testing ensuring MNO customers are receiving proven services. By ensuring that the tests can take place across geographies, enhances the flexibility available to MNOs for delivering superior and agile services. Armed with fast and uninterrupted connectivity, this generation will accelerate a lot faster than its predecessors!”
Data Collections: – Data is taken from 01-06-2022 to 31-07-2023. It has been downloaded from the NSE site, then Friday’s closing price was sorted and weekly returns of Nifty (i.e. X) and Tata Communications Limited (i.e. Y) were calculated.
Data Analysis: – Equation “Y= 0.1629 + 0.2135 (X)”
(tstat = 4.2396)
n = 50, R2 = 0.2724, F = 17.9748
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Tata Communications Limited (y) the positive sign means a positive relationship meaning if “x” rises “y” rises and vice versa. If “x” rises by 1 unit, “y” rises by 0.2135, “n” means there are 50 observations, and figures in brackets are tstat for “b”, so “b” is not as Calculated tstat for b i.e. 4.2396 is higher than tabulated t(t0.5,49DF=2.0096) so reject H0 and accept H1. R2 is 0.2724 means 27.24% of y is explained by x. As the calculated value of F =17.9748 is more than the tabulated F (F 0.05,1DF,49DF) = 4.10, the overall model is statistically significant at the 5% level.
So overall the model is statistically significant at the 5% level.
Conclusion:
If b<1, Tata Communications Limited share is good for long term investment.
References:
https://www.livemint.com/companies/tata-communications-launches-5g-roaming-lab-for-mobile-network-operators-11692783908159.html