Title– Relation of NESCO Ltd with Nifty 50
Author-Nakshatra Jain
Batch– finance f3
Roll no-21230023353
Introduction:-
NESCO LTD formerly operating under the name of Nundanee Company Limited founded the Industrial Products Department in 1979 upon the belief that the latest in Fire Protection Technology must be combined with the highest level of service in order to provide value to their customers. They have grown up rapidly and today they are among leaders in providing advanced fire protection and life safety technology.
They are specialized in meeting their customers’ requirements with creative, innovative and cost-effective solutions, no matter how challenging the task might be. They protect their customers from the ravages of fire, help save lives, protect their property and ensure business continuity.
They have departments dedicated for new projects, as well as after sales service for all installed fire protection equipment. They offer the service of Engineers and Technicians within 24 hours for emergency requirements.
Furthermore they also provide Maintenance Contracts to ensure the smooth functioning of the range of Fire Fighting Systems/Equipment throughout the year to private and public sectors.
NESCO provides the following to our valued clients:
- Designing and engineering of all types of fire protection systems
- Fire Alarm installation, inspection and repair
- Sprinkler system (wet, dry, foam, deluge) installation, inspection and repair
- Fire Pump, Fire Hydrant installation, inspection and repair
- Clean Agent (FM-200), carbon dioxide installation, inspection and repair
- Kitchen Fire Suppression (Range Guard).
- Portable Fire Extinguisher installation, inspection and repair
- Hydro-testing, recharging and repairs of all types of cylinders
- Training and fire drill Facilities
Data collection:
Data is carried from NSE India site.
Friday closing price of NIFTY50 are followed.
The weekly return of NESCO Ltd company are followed
The weekly closing returns of Nifty50 are considered X variable, and the weekly closing returns of NESCO LTD considered Y variable.
Data collection is done from 1st October 2022 to 30th September 2023.
Data Analysis:
The Regression equation Y=0.1449987 + 0.957880057 (X) Nifty50
The above equation shows the relationship between Asian Paints limited weekly closing return and Nifty50 weekly closing return.
R-Square = 0.2036%
There will be a 0.2036% change in Asian paints due to Nifty50.
Beta= 0.957
P-Value= 0.0011
F= 12.01
T-Stat= 3.466
Nifty rises by one rupee then Equity will rise by 95 paise. t-stat for b (co-efficient of Nifty) is
3.466 and the p-value is 0.00, meaning Nifty is statistically significant for Equity at a 0.1% level. Number of observations are 49. R squared is 0.2036, which means 2% of the change in Equity is explained by Nifty, which means 98% is the error due to variables, which are not included in the model. F is 12.01 and the p-value is 0.001, which means the overall model is statistically significant at a 0.1% level.
Conclusions:
Beta is 0.957
Since Beta is 0.957 which is less than 1, it is advisable to invest for a long time as it is less volatile.
Reference:-
https://www.nseindia.com/reports-indices-historical-index-data
https://www.nseindia.com/get-quotes/equity?symbol=NESCO
https://www.nseindia.com/market-data/live-market-indices
https://en.wikipedia.org/wiki/NESCO
https://www.nesco-ltd.com/about-us/