Report
Title: Relationship Of PAGEIND With Nifty50
Author: Pratham Yadav (21230023092)
Introduction:
PAGE Industries Limited is an Indian company that has gained prominence in the textile and apparel industry, particularly in the manufacturing and marketing of innerwear, loungewear, and sportswear. The company has a significant presence in India and other countries, owing much of its success to its exclusive license agreement with JOCKEY International Inc. (USA), a globally recognized brand in the innerwear and activewear segment.
Objectives:
To Calculate Beta And Find Its Significance.
View And Reviews:
PAGE Industries Limited based on the perspectives of different stakeholders, including investors, industry analysts, customers, and the general public. Industry analysts may view PAGE Industries positively if the introduction positions the company as an industry leader with a competitive edge. Insights into market trends, innovation, and strategic initiatives can contribute to favorable assessments.
Data Collection:
Data was downloaded from nseindia.com for 01/10/2022 to 30/09/2023 for Nifty50 as well as for PAGE Industries Limited. All the columns were deleted for both the sheets except date and closing price and the Friday closing price were found for both of them. Returns for X and Y were calculate, X being PAGEIND and Y being Nifty50.Finally data analysis was done.
Data Analysis:
Beta = 0.06265
R Square = 0.020083
F = 0.963257
t-stat for b = 0.981457
The above equation shows the relationship between Nifty 50 and PAGE Industries Limited. Return of PAGEIND is dependent variable and Return of Nifty 50 is independent variable. Positive sign means if Nifty50 increases PAGEIND also increases. If Nifty50 price rises by 1 unit, PAGEIND share price will rise and vice versa. No of observation are 50. Figure which is written in bracket that is (0.981457) is t- stat for b. The P value is 0.309 for Intercept, 0.331 for X Variable, P-values test the null hypothesis that the corresponding coefficient is equal to zero. R square 0.020083 in the regression output for PAGE Industries Limited indicates that approximately 2.01% of the variances in PAGE Industries Limited share price are explained by Nifty 50 in other words 92.83% is error means 92.83% is due to the variables which are not in the model. F is 0.963257. Overall model is statistically insignificant at 5% level.
Conclusion:
Beta 0.06265 is less than 1, therefore it is good for long term investment.
References: