Report
Title: Relationship Of Voltas With Nifty50
Author: Vanshika Rathore
Introduction:
Voltas Limited established in 1954 is a listed public company and part of the leading Indian multinational Tata group which has operations in over 100 countries across 6 continents and has more than a million employees. We are a Trusted brand well known for the quality of our products, extensive range, our reach & sensible pricing. Voltas is India’s largest air conditioning company and offers a comprehensive range of cooling & home appliances including room air conditioners, air coolers, air purifiers, domestic refrigerators, washing machines, water dispensers, dishwasher, microwave, commercial refrigeration, and accessories in its portfolio. We are delighted to have provided comfort and convenience to millions of households across India.
Objectives:
To Calculate Beta And Find Its Significance.
View And Reviews:
Voltas Limited has been providing turnkey electro-mechanical solutions internationally for more than four decades with a significant level of projects and operations in the Middle EastAt Voltas, we believe in engineering smart, intuitive and innovative solutions, to craft a world that is more efficient. A world that keeps people’s needs at its core.
Data Collection:
Data was downloaded from nseindia.com for 02/12/2022 to 24/11/2022 for Nifty as well as for Voltas . All the columns were deleted for both the sheets except date and closing price and the Friday closing price were found for both of them. Returns for X and Y were calculate, X being Nifty and Y being Voltas . Finally data analysis was done.
Data Analysis:
Equation- Return of voltas = 86518.11
-233.088
(Return of Nifty 50)
(1.89036)( t-stat for b)
R Square = 0.070659
F = 3.573455
The above equation shows the relationship between Nifty 50 and Voltas. Return of Voltas is dependent variable and Return of Nifty 50 is independent variable. Positive sign means if Nifty50 increases Voltas also increases. If Nifty50 price rises by 1 unit, Voltas share price will rise by -233.088 and vice versa. No of observation are 50. Figure which is written in bracket that is (1.89036) is t- stat for b. The P value for which is 0.064885 which means Nifty 50 is statistically insignificant at 5% level. R square 0.070659 is which means 7.0659%of variances in Voltas share price are explained by Nifty 50 in other words 123.30% is error means 123.30 % is due to the variables which are not in the model. F is 3.573455. Overall model is statistically insignificant at 5% level.
Conclusion:
Beta 86518.11 is which is more than 1, therefore it is good for Short term investment.
References:
https://www.voltas.com/