Relationship between Kalyan Jewellers with Nifty
Author: – Khushbu Kabra (F-3)
Roll. No.: -21230023056
Introduction: –
Kalyan Jewellers is a renowned Indian jewelry brand known for its exquisite craftsmanship and wide array of gold, diamond, and gemstone-studded jewelry. Established in 1993, it has grown into a prominent name in the jewelry industry, offering high-quality pieces, traditional designs, and a diverse collection catering to various tastes and occasions. With a presence across India and abroad, Kalyan Jewellers is recognized for its commitment to quality, authenticity, and customer satisfaction.
Objective: –
To Calculate Beta(β) and its significance of the equity stock of Kalyan Jewellers.
Review: –
Amitabh Bachchan: He has been the brand ambassador for Kalyan Jewellers for many years. Amitabh’s association with Kalyan Jewellers, known for its emphasis on purity. His emotive performances in Kalyan Jewellers ads, often portraying heartwarming father-daughter bonds, emphasize the emotional attachment associated with buying and gifting jewellery.
Narendra Modi: Kalyan Jewellers has been associated with supporting national initiatives and sponsoring events attended by Prime Minister Modi. This suggests a potential positive perception from the government level regarding their contributions and ethical practices. Exploring user feedback on platforms like Google Reviews, social media, and independent review websites can offer insights into customer experiences and satisfaction with Kalyan Jewellers.
Data Collection: –
Data was downloaded from nseindia.com for 01/10/2023 to 30/09/2023 for Nifty as well as for Kalyan Jewellers. All the columns were deleted for both the sheets except date and closing price and the Friday closing price were found for both. Returns for X and Y were calculated, X being Nifty and Y being Kalyan Jewellers. Finally, data analysis was done.
Weekly returns of Nifty = X
Weekly returns of Kalyan Jewellers = Y
Linear Regression was carried out.
Data Analysis: –
The regression equation has the form:
Y = a + bX
Where, Y is the dependent variable,
X is the independent variable,
a is the intercept,
b is the slope.
In our case Kalyan Jewellers is the dependent variable and Nifty 50 is the independent variable.
Intercept, a = 1.59
Slope, b = 1.20
R Square = 0.0523
F = 2.595977
So, the regression equation is given by-
Y (Kalyan Jewellers) = 1.59+1.20x(Nifty)
The above equation shows us the relationship between Kalyan Jewellers and Nifty. The positive sign indicates that if Nifty rises then the price of Kalyan Jewellers shares will also rise and vice versa. If Nifty rises one unit i.e., Nifty rises by one rupee then Equity will rise by 120 and vice versa. t-stat for b (co-efficient of Nifty) is 1.61 and the p-value is 0.113832, statistically significant for Equity at 95% level. The number of observations is 50.
Conclusion: –
Beta is 1.20, which is greater than 1, it means Kalyan Jewellers is good for short-term investment.
Reference: –
https://www.nseindia.com/get-quotes/equity?symbol=KALYANKJIL
