Title: Relationship Of Voltas with Nifty 50
Author: Vishal Gupta (21230023804)
Introduction:
Voltas Limited is an Indian multinational home appliances company headquartered in Mumbai. It designs, develops, manufactures, and sells products including air conditioners, air coolers, refrigerators, washing machines, dishwashers, microwaves, air purifiers, water dispensers. Voltas is India’s largest air conditioning company by market share. The company was incorporated on 6 September 1954 in Mumbai, as a collaboration between Tata Sons and Volkart Brothers. The company is currently chaired by Noel Tata and Pradeep Bakshi is the company’s current chief executive officer and managing director.
Objectives:
To Calculate Beta and Find Its Significance.
View And Reviews:
Voltas Limited has been providing turnkey electro-mechanical solutions internationally for more than four decades with a significant level of projects and operations in the Middle East At Voltas, we believe in engineering smart, intuitive and innovative solutions, to craft a world that is more efficient. A world that keeps people’s needs at its core.
Data Collection:
The data of this has been downloaded from nseindia.com from 01/11/2022 to 31/10/2023 from Nifty as well as for Voltas. All the columns were deleted for both the sheets except date and closing price. Weekly returns of Nifty are X and Weekly returns of Voltas is Y.
Data Analysis:
Equation : (Y= 486.0017+0.012858X)
(1.740391)( t-stat for b)
R Square = 0.061779
F = 3.028962
The above equation shows the relationship between Nifty 50 and Voltas. Return of Voltas is dependent variable and Return of Nifty 50 is independent variable. Positive sign means if Nifty50 increases Voltas also increases. If Nifty50 price rises by 1 unit, Voltas share price will rise by 0.012858 and vice versa. No of observation are 50. Figure which is written in bracket that is (1.740391) is t-stat for b. The P value for which is 0.088477 which means Nifty 50 is statistically insignificant at 5% level. Overall model is statistically insignificant at 5% level.
Conclusion:
Beta 0.012858 which is less than 1, therefore it is good for Long term investment.
References:
https://www.voltas.com/