RESEARCH REPORT
Title: Relationship between Nifty50 & Gillette
Author: Gaurav Poojary
Introduction:
Gillette is an American brand of safety razors and other personal care products including shaving supplies owned by multinational corporation Proctor Gamble (P&G). Based in Boston, Massachusetts United States, it was owned by The Gillette Company, a supplier of products under various brands until that company merged into P&G in 2005. The Gillette Company was founded by King C. Gillette in 1901 as a safety manufacturer.
Objectives: To find out relationship between Beta and its significance
Views and Reviews:
On January 13, Gillette released a new ad that takes the company’s 30-year-old slogan, “The Best a Man Can Get,” and turns it into an introspective reflection on toxic masculinity very much of this cultural moment. Titled “We Believe,” the nearly two-minute video features a diverse cast of boys getting bullied, of teens watching media representatives of macho guys objectifying women, and of men looking into the mirror while news reports of #MeToo and toxic masculinity play in the background. A voiceover asks “Is this the best a man can get?” The answer is no, and the film shows how men can do better by actively pointing out toxic behaviour, intervening when other men catcall or sexually harass, and helping protect their children from bullies. The ad blew up; as of Wednesday afternoon, it has more than 12 million views on YouTube, and #GilletteAd has trended on Twitter nationwide. Parents across Facebook shared the YouTube link in droves, many mentioning how the ad brought them to tears.
Data collection:
Data was downloaded from nseindia.com for the period 01-10-2022 till 30-09-2023. For finding out the returns all the columns were deleted expect for date and closing price wherein only Friday closing price were taken into consideration. Returns for X and Y were calculated, X being returns of Nifty 50 and Y being returns of Gillette. Finally, data analysis for regression was carried out successfully.
Data analysis:
Equation: Returns on Gillette = 258.872009 – 0.28710015 return on Nifty 50
t-stat for b = -0.77391
R Square = 0.83592388
F = 244.5472
The above equation shows the relationship between Nifty 50 and Gillette. Return on Gillette is dependent variable and return on Nifty 50 is independent. Negative sign means if Nifty 50 decreases Gillette also decreases. If Nifty 50 price falls by 1 unit, Gillette’s share price decrease by 0.287100 and vice versa. The p value which is 0.442782 which indicates that Nifty 50 is statistically significant at 5% level. R -square is 0.835923 which means 83.5923% of variances in Gillette share price are explained by Nifty 50 in other words 0.164077 is error which also explains 16.4077 is due to the variables which are not in the model. F is 244.5472. Overall model is statistically significant.
Conclusion:
Beta is – 0.28710015 which is less than 1, therefore it is good for long term investment.
References:
https://www.nseindia.com/get-quotes/equity?symbol=GILLETTE