Title: Relationship of ACC Limited with Nifty50.
Author: Amisha Raj
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.
Objectives: To calculate beta and find its significance.
Views & Reviews:
- Rakesh Jhunjhunwala: The “Big Bull” of Indian stock market reportedly held a stake in ACC in 2022. While he might not have explicitly commented on it in recent times, his past positive stance on the cement sector and ACC’s strong fundamentals suggests potential continued faith in the company.
- YK Hamied, Founder of Cipla: Commended ACC’s social responsibility initiatives, highlighting their efforts in healthcare, education, and community development.
Data Collection:
Data is downloaded from https://www.nseindia.com/reports-indices-historical-index-data , https://www.nseindia.com/get-quotes/equity?symbol=ACC for 1-10-2022 to 30-09-2023 period.
DATA ANALYSIS:
Regression Equation: Return of ACC limited = 2178.83 – -0.01361(Return of Nifty 50)
R Square = 0.001515 (0.001515)
F = 0.001515
Interpretation: In the above equation shows the relationship between Nifty 50 and ACC limited. Return of ACC limited is dependent variable and Return of Nifty 50 is independent variable. Negative sign means if Nifty 50 price rises, ACC limited share price falls. If Nifty 50 price rises 1 unit, ACC limited share price will fall by 0.01361 unit & vice versa. No of observation are 50. Figure which is written in bracket 0.001515 is t test for ACC limited. The P value for which is 0.79061 which means Nifty 50 is statistically insignificant at 5% level. R square is 0.001515 which means 0.15% of variances in ACC limited share price are explained by Nifty 50 in other words 99.85% is error means 99.85% is due to the variables which are no in the model. F is 0.001515. Overall model is statistically insignificant at 5% level.0.
Conclusion: Beta is 2178.83 more than 1 it means ACC limited is good for short term investment.
References:
https://www.nseindia.com/reports-indices-historical-index-data
https://www.nseindia.com/get-quotes/equity?symbol=ACC