Title: Relationship between Panasonic Appliances Ltd & Nifty
Author: Pravita Jagtap
Roll No – 21230023305
Introduction
The Company was incorporated as a public limited company on 9th September 1988 in the name of Indo Matsushita Appliances Company Limited. The Company was promoted as a joint venture by Mr. P Panasonic came into the country in 1972 but it was in 1994, when the foreign direct investment regulations were further relaxed, that Panasonic became a wholly owned subsidiary in India. Panasonic made several investments during that period and was a strong player until around 2000.20 Jan 2022
Objective:
To calculate beta and significance
Views/Reviews:
Panasonic selects 12 startups as part of 1st cohort of “PANASONIC IGNITION” Corporate Accelerator program in partnership with 100X.V
The sensors are compliant with the highest Automotive Safety Integrity Level (ASIL-D) defined in ISO26262 Function Safety Standard
Data Collection:
Data was downloaded from the website nseindia.com. Data was extracted for the period 1-10-22 to 30-09-2023, and all the data except the date and closing price for the end of the week excluded. The returns were calculated with the previous week’s return as the base.
Weekly returns of Nifty = X
Weekly returns of Panasonic Appliances Ltd. = Y
Linear Regression is conducted.
Data Analysis: Y = 0.5960 + 0.3275X
T-Stat: 0.9574
N: 48
R-square: 0.0195
F: 0.9166
P-value: 0.3433
The above equation shows the relationship between Nifty 50 and Panasonic Ltd., Panasonic is dependent variable and Nifty 50 is independent variable. The positive sign shows that is Nifty 50 rises Panasonic also rises and vice – versa.
If Nifty 50 rises by 1rs Panasonic will increase 0.32 paisa. Income is statistical at 1% level.
No. of. Observers are 50. R-square is 0.195 which means 90% of Axis Bank depends on Nifty 50. In other words, 10% is error which may be due to other variables which are not taken in the model. F is 0.9166 and P-value is 0.3433 which means overall, the model is statistically significant at 1% level.
Conclusion:
Beta is 0.319948 which is less than 1 so it is better for long term investment.
Reference:
https://www.panasonic.com/in/corporate/news/articles/panasonic-selects-12-startups-as-part-of-1st-cohort-of-panasonic-ignition-corporate-accelerator-program-in-partnership-with-100x-vc.html
