Relationship of Kalyani with Nifty

  • Relationship of KALYANI with Nifty 
    Author – Komal Matolia 
     
    Introduction of of the Company – The Kalyani Group is an Indian
    multinational conglomerate that operates in various key sectors including engineering steel,
    automotive and non-automotive components, renewable energy and infrastructure, and specialty
    chemicals. The group has also expanded its operations into the defense manufacturing sector,
    which was showcased at the DefExpo 2020.
     
    Objective- To calculate Beta and Find the significance 
     
    Views and Reviews –
    1. Pune-based Kalyani Group showcased its range of indigenous
    products at Lucknow. Three new artillery platforms unveiled by
    them at the show included MarG Extended Range, a 155mm/52 cal
    UltraLight Howitzer; Garuda-105 V2, which is a 105mm gun
    mounted on their Go Anywhere Vehicle; and 4×4 MGS, which is a
    155mm/39 cal gun system mounted on a 4×4 platform.
     
    2. Saab and the Kalyani Group have entered into a strategic alliance to
    partner and address key Indian Army air defence projects, including
    the VSHORAD and SRSAM requirements. The agreement was signed
    by Saab’s CEO and President Håkan Buskhe with Baba Kalyani,
    Chairman of the Kalyani Group during Defexpo. The agreement will
    initially focus on the VSHORAD and SRSAM programmes for India.
    Saab is o<ering a system based on the RBS 70 NG missile system
    for VSHORAD, delivering a highly accurate, man-portable system
    with 24/7 all-target capability that is immune to countermeasures.
     
    Data collection from NSE India were Friday closing were found weekly.
    Data Analysis – Y= 1.169+ 0.989Y
    The regression analysis indicates a strong relationship between the independent variable X
    and the dependent variable Y (Multiple R = 0.95). The model explains approximately 90% of
    the variability in Y, as depicted by the Adjusted R square of 0.90. The regression equation is
    Y = -1.169 + 0.989X, where X has a significant impact (p < 0.001) on Y, supported by a high
    t-statistic of 21.08. The intercept’s p-value is 0.0858, indicating it might not be significantly
    different from zero. The ANOVA results further strengthen this relationship, showcasing a
    significant F-statistic (444.553) and a very low significance level (6.4759E-26). Overall, X appears to be a highly influential factor in determining Y based on this regression analysis

    with 50 observations.

    Conclusion   – In the context of the beta values provided is 1.69 which is more than 1. This suggests that the company’s stock tends to exhibit higher volatility compared to the market. Higher volatility can indicate a potentially high risky investment. The company might be considered more suitable for short term investment.

     

     

    Reference: www.nse.com  

     

     

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