Title: RELATIONSHIP OF ADANI PORTS LTD WITH NIFTY-50
Author: Aarjvi Pant
Objective: To calculate Beta of Adani Ports and find its significance
Views and Reviews:
Adani Ports and Special Economic Zone Limited is an Indian multinational port operator and logistics company, based in Ahmedabad, India. A subsidiary of Adani Group, APSEZ is India’s largest private port operator with a network of 12 ports and terminals, including India’s first deep water Transshipment Port Vizhinjam International Seaport Thiruvananthapuram and India’s first port based SEZ at Mundra. It was incorporated as Gujarat Adani Port Limited on May 26, 1998, and commenced phased operations at Mundra Port in October 1998 with commercial operations beginning in October 2001.
Data Collection: The data for Nifty 50 and Equity of Adani Ports has been collected from nseindia.com from 1st December 2022 to 30th November 2023. Friday closing weekly returns have been calculated.
Data Analysis: Y = a + b x + e
Adani Ports Equity = 0.116 + 0.022 (Nifty 50)
N= 49, R SQUARE = 0.012, F = 0.570, P Value = 0.45
The above equation shows the relationship between Nifty 50 and Adani Ports.
Here, X is the independent variable, i.e., Nifty 50 and Y is the dependent variable, i.e., equity of Adani Ports.
T-stat for b is 0.75 and the p value is 0.56 which is greater than 0.005. This means that the coefficient is not statistically significant, and we cannot reject null hypothesis. Hence, there is no significant relationship between a one unit increase in Nifty and change in Adani Ports Ltd.
R Square is 0.012, which is quite low, this signifies that the model does not explain much of the variability in Adani Ports Limited based on the independent variable.
Conclusion:
As beta is 0.022 which is less than 1, Adani Ports Limited is good for long term investment. However, while there is an estimated positive impact based on the beta value, the model does not provide strong evidence to suggest that a one-unit increase in Nifty is associated with a significant change in Adani Ports Ltd.
References:
https://www.nseindia.com/get-quotes/equity?symbol=ADANIPORTS
https://www.moneycontrol.com/company-facts/adaniportsspecialeconomiczone/history/MPS
https://en.wikipedia.org/wiki/Adani_Ports_%26_SEZ