TITLE: Relationship of ADANI Enterprise with NIFTY50
Author: Ankita Mahendra Lagde.
Introduction:
Adani Enterprise Limited (AEL) is an Indian multinational publicly listed holding company and a part of Adani Group. Adani Enterprise Limited is recognized as India’s largest listed business incubator, with a focus on four core sectors: energy and utility, transportation and logistics, consumer goods, and primary industry.
Objectives: To calculate beta and find its significance
Views and Reviews: The price trend of Adani Enterprise is constantly changing. Adani Enterprise is good for short term investment.
DATA COLLECTION: from https://www.nseindia.com/
For 01/12/2022 to 30/11/2023
Data Analysis:
Regression Equation:
Return of Adani Enterprise = 1.81573 + 1.01858(Return on Nifty50)
R Square = 0.53097 (7.3716)
N = 49
F = 54.33983
Interpretation:
The above equation shows the relationship between Adani Enterprise shares and Nifty50. Return on equity is dependant variable and return on Nifty50is an independent variable.
If Nifty rises by one unit, Adani enterprise will rise by 1.01858 unit. Number of observations are 49. Figure written in bracket 7.3716 is t-test for b. The P value for which is 1.99 which is more than 0.05, which means Nifty does not affect Adani Enterprise shares.
R square is 0.5309 which means 53.09% of Adani Enterprise share prices are explained by Nifty 50 in other words 46.01% Adani Enterprise is depends on other fundamentals. F is 54.33983 and p value is 1.99 is more than 0.05. So, the model is not statistically significant at 5% level.
Conclusion:
As a Beta is 1.01858 which is more than 1% which means company is good for short term investment.