Relationship of D-MART with Nifty 50
Authors Name:- Dhir Jitendra Kharwa.
Roll No. 0222090
D-Mart is a well-known retail company in India, established in 2000. With a focus on hypermarkets, D-Mart offers a wide range of products, including groceries, household items, electronics, and more. It follows a low-cost business model to provide customers with high-quality products at affordable prices. D-Mart is known for its clean and organized store layouts, efficient stock management, and excellent customer service. With a growing customer base, D-Mart continues to expand its presence in various cities across India.
Objective: To calculate the beta of Yes Bank and find out its significance.
Views and reviews:
Radhakishan Damani as the CEO of DMart. As of my last knowledge update in September 2021, I don’t have access to real-time information, and I cannot provide the most current views or opinions of individuals. However, Radhakishan Damani is known as the founder of DMart (Avenue Supermarts Ltd.), a well-known Indian retail chain. His views on DMart could vary depending on the context and the time at which they were expressed. Damani is known for being a private individual and often doesn’t share his views publicly. His actions, strategies, and decisions related to DMart might reflect his beliefs and viewpoints indirectly. If you’re looking for his current views on DMart or any recent developments.
Ignatius Navil Noronha: Noronha is behind the best practices that have helped DMart, which pays its suppliers within 48 hours of delivery. They, in turn, allow an additional 2-3% gross margin to the chain, enabling it to keep prices low. “We want to keep things simple and are not in a hurry to open stores,” is a sentence often used by Noronha about the company’s performance.
The data for the period July 1, 2022 to June 30, 2023 has been downloaded from NSE’s website and Friday’s closing price was found out. The weekly returns of Nifty 50 are represented as X and that of Yes Bank as Y.
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 DMart 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=3075.998+0.039865*x+e |
T stat = 0.467101
R2 = 0.004525
F= 4.043
The above equation shows the relationship between Nifty 50 (X) and Yes Bank (Y). The positive sign means there is a positive relationship, which means, if X rises then Y also rises and vice-versa.
Conclusion:
Since the beta of DMart is 0.039, the share of the company is good for long term investment. This is because b<1