Title – Relation of Siemens Limited with Nifty Fifty and to calculate Beta.
Author – Shreeya S. Iyer
Introduction – Siemens Limited is a leading multinational corporation with a strong presence in India. Specializing in technology and engineering, Siemens offers a diverse range of products and services in sectors such as energy, healthcare, and industry. The company is known for its cutting-edge innovations and solutions, contributing to advancements in infrastructure, manufacturing, and healthcare systems. With a history dating back over a century, Siemens Limited continues to be a key player in shaping the modern industrial landscape in India and globally.
Objectives – To calculate Beta of Siemens to see its significance.
Literature Review –
- Siemens Limited, formerly known as Siemens India Limited, was founded in 1867 and is based in Mumbai, India. It operates as a subsidiary of Siemens Aktiengesellschaft. The company is a key player in Industry, Energy, and Healthcare, with a diverse range of businesses in these segments. In Automation and Controls, Siemens provides intelligent system solutions for building automation, process control, and plant operation systems. In the Energy sector, the company combines expertise in Power Generation and Power Transmission & Distribution. Siemens Healthcare division focuses on improving healthcare by enabling early and accurate disease diagnosis. Osram, a Siemens company, is a major player in the global lighting industry. Siemens is also involved in Mobility, offering products and solutions for railway signaling, safety systems, traffic control, electrification, and mass transit vehicles.
- Siemens Limited manufactures and sells electrical equipment globally. It operates in four segments: Energy (products and services for oil, gas, and power), Smart Infrastructure (transmission and distribution solutions), Mobility (railway and transportation products), and Digital Industries (integrated technology solutions). The company serves various sectors, including utilities, industrial, and infrastructure. The Energy segment focuses on oil, gas, and power generation, while Smart Infrastructure provides electrical solutions for grids and buildings. Siemens Limited is a key player in the global market for electric motors, generators, transformers, and related equipment.
Data Collection – The data for Nifty and Equity of Siemens has been downloaded from nseindia.com and finance.yahoo.com from 1st November, 2022 to 31st October, 2023. Data was manipulated to calculate the Friday closing price.
Data Analysis –
Siemens share = 0.253 + 0.342nifty
n= 48, Rsquare = 0.114, F = 6.046
The above equation shows the relationship of Siemens with Nifty.
If Nifty rises by 1 unit, Siemens will rise by 0.342 units.
t-stat for b is -2.459 and the p value is 0.018 which is less than 0.05, so b is not equal to 0, meaning Nifty impacts Siemens.
Rsquare is 0.11, meaning 11% of Siemens share are explained by the movement in Nifty, and 89% depends upon other things like fundamentals.
F = 6.04, and p value is less than 0.05, so the model is statistically significant at 5% level.
Conclusions –
As Beta is (0.342) is less than 1, so good for long term investments.
References
https://finance.yahoo.com/quote/SIEMENS.NS/profile?p=SIEMENS.NS
https://www.moneycontrol.com/india/stockpricequote/infrastructure-general/siemens/S
VERY GOOD