Title: Relationship of ACC Ltd. with Nifty50
Author: Ashmit Gupta
Introduction: ACC Limited (Formerly the Associated Cement Companies Limited) an Indian cement producer, headquartered in Mumbai. It is a subsidiary of Ambuja Cements and a part of the Adani Group. On 1 September 2006, the name of The Associated Cement Companies Limited was changed to ACC Limited. The company was established in Mumbai, Maharashtra on 1 August 1936. The management control of company was taken over by Swiss cement manufacturer Holcim Group in 2004.
Objectives: To calculate beta and find its significance.
Views & reviews: ACC Ltd.’s share price has been relatively stable in recent years, although it has faced some fluctuations due to market conditions. You can find detailed financial reports and analyst reviews on their website or financial news platforms. ACC cement generally receives positive reviews for its quality and durability. Users often mention specific product lines like ACC Gold and ACC Concreto being reliable for various construction projects.
Data Collection: Data is downloaded from
https://www.nseindia.com/get-quotes/equity?symbol=ACC
https://www.nseindia.com/reports-indices-historical-index-data
for 1-12-2022 to 30-11-2023 period. And then this Friday cost price was found.
Data Analysis:
Regression Equation: Return of ACC LTD. = 886.4976 + 0.052402 (Return of NIFTY 50)
R Square = 0.033614 (1.292124)
F = 1.669584
Interpretation: The above equation shows the relationship between NIFTY 50 and ACC Ltd. share. Return of ACC Ltd. is dependent variable and Return of NIFTY 50 is independent variable. Positive sign means if Nifty 50 price rises ACC Ltd. share price also rises. If NIFTY 50 price rises by 1 unit, ACC Ltd. share price will rise by 0.052402 unit & vice versa. No. of observations are 50. Figure which is written in bracket is test for b. The P value for which is 0.202501 which means NIFTY 50 is statistically insignificant at 5% level. R square is 0.033614 which means 3.36% of variances in ACC Ltd. share price are explained by NIFTY 50 in other words 96.64% is error means 96.64% is due to the variables which are not in the model. F is 1.669584. Overall model is statistically insignificant at 5% level.
Conclusion: Beta is 886.4976 is more than 1 it means ACC Ltd. is good for short – term investment.
References:
https://www.nseindia.com/get-quotes/equity?symbol=ACC
https://www.nseindia.com/reports-indices-historical-index-data
https://en.wikipedia.org/wiki/ACC_%28company%29