Relationship of Tata Consultancy Services with nifty
Author: Tejas Pagare
Introduction:
TATA Consultancy Services Limited (TCS) is an Indian multinational information technology (IT) services and consulting company with its headquarters in Mumbai, Maharashtra. It is a part of the Tata Group and operates in 150 locations across 46 countries. In July 2022, it was reported that TCS had over 600,000 employees worldwide. TCS is the second largest Indian company by market capitalization and is among the most valuable IT service brands worldwide, and is the top Big Tech (India) company. In 2015, TCS was ranked 64th overall in the Forbes “World’s Most Innovative Companies” ranking, making it one of the highest-ranked IT services companies and a top Indian company. As of June 2023, it is the world’s 2nd largest IT employer.
Objective:
To calculate beta of Tata Consultancy Services and observe its significance.
Views and reviews:
N Chandrasekaran Chairman
- The global environment is going through considerable changes. At the same time, the world is navigating several important transitions: the Energy transition, the Supply Chain transition and the AI transition. Undoubtedly, these transitions will require significant investments in technology and innovation, and offer a huge growth opportunity for the IT industry
- I strongly believe that technology is at its most transformational when combined with the strength of human capital. In FY 2022, our employee strength grew to 592,195 with a record net addition of 103,546 employees. You will be proud of the way your company supported its employees and their families in dealing with the pandemic, including organizing what was perhaps the largest vaccination drive in corporate India for employees and families of not just TCS, but also of its extended ecosystem of partners and other group companies.
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 Tata Consultancy Services were Calculated (Nifty Returns Taken as X and Equity Return Taken As Y) Y Was Regress On X.
Data analysis:
|
Equation y= -0.029+0.1854x+e |
(Tata Consultancy Services =-0.029+0.185 Nifty 50 + e)
T stat for b = 0.719
R2 = 0.01066
F= 0.517
The above equation show any relationship between nifty 50 (X) and Tata Consulting Services (Y). Tata Consultancy Services runs on own fundamentals the t stat for b is 0.719 not statistically significant at 5 % level, R2is 0.01066 which means 1% Y is explained by X. 99% is the error in model. 0.517 Which is less than the table value which means overall them model is not statistically significant at 5% level.
Conclusion:
The Beta Of The Tata Consultancy Services Is < 1 So The Company Is Good For Long Term Investment.