Title: – “Relationship of Vedanta Ltd. With Nifty50”
Author: – Vighnesh Jadhav (MMS First Year, Roll no. 0222018)
Kohinoor Business School, Kurla.
Introduction: – Vedanta Ltd. is an Indian natural resources company headquartered in Mumbai. It operates globally and is a major player in mining and metals, including zinc, copper, aluminum, and iron ore. The company is also involved in oil and gas exploration and power generation. Despite its diverse operations, Vedanta has faced criticism for environmental and social issues. It’s listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in India.
Objective: – To Calculate the Beta of Vedanta Ltd. and find out its significance.
Views and Reviews: –
Sunil Duggal, CEO of Vedanta Limited said – Our commitment to operational excellence has helped us deliver record performance across our key businesses. We have delivered the highest-ever free cash flow (pre-capex) of Rs 28,068 crore, enabling us to reinvest for business growth and provide our valued shareholders with attractive dividends.”
Anil Agarwal, Chairman of Vedanta Group said – Entrepreneurship can be a very lonely experience. If you know someone who is on this journey, try to empower them in some way, big or small. He concluded his post alongside an image of himself with a backdrop that said empowering.
Data Collections: – Data is taken from 01-06-2023 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 Vedanta Ltd. (i.e. Y) were calculated.
Data Analysis: – Equation “Y=-0.0517-0.3787(X)”
n = 50, R2 = 0.0284, F = 1.4016
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Vedanta Ltd. (y) the negative sign means a negative relationship meaning if “x” rises “y” falls and vice versa. If “x” rises by 1 unit, “y” falls by 0.3787, “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. 1.1839 is lower than tabulated t(t0.5,49DF=1.677) so accept H0 and Reject H1. R2 is 0.0284means 2.84% of y is explained by x. As the calculated value of F =1.4016 is less than the tabulated F (F 0.05,1DF,49DF) =4.038, the overall model is not statistically significant at the 5% level.
So overall the model is statistically not significant at the 5% level.
Conclusion:
If b<1, Vedanta Ltd. share is good for long term investment.