Title: – Relationship of Reliance Industries Limited with Nifty 50
Author: Ritu Ramdhari Yadav (MMS First year, Roll no. (0222065)
Introduction:
From a humble textile unit in Mumbai, Reliance Industries Ltd. has grown into a major force in India. Beginning with textiles, it swiftly rose to prominence. Expanding into petrochemicals and refining in the 1970s, it became a global player by the 1980s. Going public in 1986 and diversifying through its first IPO the next year marked a crucial turning point. The 1990s saw ventures into telecom, power, and finance. The 2002 merger with Indian Petrochemicals Corp. amplified refining, followed by a retail foray in 2005. RIL’s retail presence now spans groceries, hypermarkets, and online. With Jio’s 2016 launch, RIL emerged as a telecom leader and invested in renewables, digital services, and healthcare, all while maintaining a global presence in 100+ countries.
Objective:
To calculate beta of Reliance Industries Limited and observe its significance.
Views and reviews:
Reliance Industries CEO and Managing Director Mukesh Ambani
The global economic crisis remains unabated, but despite the continued economic turbulence we succeeded in retaining our position as the leading private enterprise in India. The FY 2013-14 was another record-setting year for us. Our refining business delivered the highest-ever profits with a sharp recovery in gross refining margins towards the end of the year. Petrochemical earnings grew significantly with a margin expansion across polymers and downstream polyester products. At Reliance, growth is not just centered on profits; we place sustainable development at the core of our business decisions and align our sustainability strategy with our business goals. This means concern for safety, environment and communities percolates in our decisions to design, build and develop all our projects. We therefore take it upon ourselves to produce, provide and deliver in the right way.
Data collection:
Data for This Period (1/7/2022 to 30/6/2023) has been downloaded from NSE India Site and Weekly Closing Prices Were Found out Then Weekly Returns of Nifty a Weekly Return of Bharat Petroleum Corporation Ltd were Calculated (Nifty Returns Taken as X and Equity Return Taken As Y) Y Was Regress on X.
Data analysis: Equation “^Y= -0.040 – 0.1031(X)” (tstat = -0.4428)
n = 50, R2 = 0.00407, F = 0.1961
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Reliance Industries Limited. The negative sign means negative relationship. Meaning if X rises Y falls and vice versa. If X rises by one unit Y falls by -0.1031 units. N means there are 50 observations. Figure in bracket is T stat for (B -0.4428). So, B is statistically significant at 5% level. R2 is 0.00407 means (0.41%) of Y is explained by X and balance (99.59%) is error due to the variable which are not model. F is 0.1961 which is less than the table value so overall the model is statistically not significant at 5% level.
Conclusion:
The Beta of the Reliance Industries Limited Is < 1 So the Company Is Good for Long Term Investment.