Title – Relationship between Nifty 50 index and Nippon life india assest management Limited
Author – Nilesh choudhary
F1 Batch
Introduction
Nippon Life India Asset Mgt. is engaged in managing mutual funds including exchange traded funds (ETFs); managed accounts, including portfolio management services, alternative investment funds and pension funds; and offshore funds and advisory mandates.
Objective
To find beta and its significance.
Views and Reviews
1. The sales of Nippon life india asset management are constantly growing from previous 7 years and the net profit is also growing which is a sign mature company .
2. The Board has also recommended a final dividend of Rs. 7.50/- per Equity Share of Rs. 10/- each for the financial year ended March 31, 2023, for the approval of the shareholders at the ensuing Annual General meeting
Data Collection
The data for the analysis was collected from Historical data of Nifty 50 index and Nippon life india assest management limited from yahoo Finance further the data was classified into date from 04-11-2022 to 27-10-2023 and there closing balance for the day till Friday and then calculated the returns of both nifty 50 index (X) and Nippon life india assest management (Y) in the table form in excel and then considering the returns of both we find regression.
Data Analysis
The regression equation for the data is –
Y=0.084779517+0.19053485x
The above equation shows the relation between Nifty50 and Nippon life india assest management
Return of Nippon life india assest management. is dependent variable and return of Nifty50 is independent variable.
The number of observations are 45.
4.170236928 is the t-stat for Y, the p-value for which is 0.000144665.
R square is 0.287971912 which means 28% =of variances in Nippon life india assest management are explained by Nifty.
F is 17.3909 , p-value for this is 0.000144665 which means the model is statistically significant at the 1% level.
Conclusion
Here the beta is 0.19053485x which is less than 1, which means Nippon life india assest management Limited is good for long term investment.
Reference
Source of data is collected from Yahoo Finance and Screener Yahoo Finance – Stock Market Live, Quotes, Business & Finance News , Popular Stock Screens – Screener