Relationship of NIFTY 50 with Suzlon Energy

Relationship of NIFTY 50 with

Suzlon Energy

Author – Shaunak Pachpute

 

Introduction: –

Suzlon, established in 1995, is a global leader in renewable energy solutions, pioneering sustainable energy across the world. They are headquartered in India and hold the title of the country’s leading renewable energy solutions provider. Their expertise lies in wind energy, where they offer a comprehensive package encompassing everything from wind turbine generators (WTGs) to installation and maintenance. With over 12,860 WTGs installed across six continents, they play a significant role in the global transition to clean energy. Additionally, Suzlon is actively exploring solar power and plans to offer integrated wind-solar solutions in the future, solidifying their commitment to a sustainable future.

Objective of the study: – To calculate the Data of Suzlon and its significance.

Views and Reviews: –

  1. Vinod Tanti (SUZLON, Chairman): Suzlon is India’s leading renewable energy solutions provider offering a 360-degree total solutions package to its customers that covers the entire spectrum of wind energy projects. For more than two decades, our turnkey solutions and lifetime support combined with the best-in-class products have created value for our customers throughout the globe.
  2. Board of Directors Report: Vinod Tanti brings to Suzlon, his vast experience of the complete wind energy value chain as well as his process centricity and drive for innovation. Suzlon established and continues to maintain its technology and service leadership in India under his supervision.

Data Collection: –

Historical data has been downloaded from 01/02/2023 to 31/01/2024 from www.nseindia.com, and the weekly returns of NIFTY 50 and SUZLON are calculated from the same.

Y = a + b X

Here Y is the dependent variable (Weekly Returns of SUZLON) and X is the independent variable (Weekly Returns of NIFTY 50)

SUZLON Weekly Returns = 3.539 – 0.0058 (NIFTY 50 Weekly Returns)

The above equation shows the relationship between Weekly Returns of SUZLON and NIFTY 50.

Data Analysis: –

  • of Observations are 49.
  • R2 means (0.7756) 77.5% of SUZLON Weekly Returns is explained by NIFTY 50 Weekly Returns. The rest 23% are errors which are not considered by the model.
  • T stat and P value for b is -12.745 and 7.32E-17 respectively, it is less than 0.05 which means that NIFTY 50 Weekly Returns are statistically significant at 5% level.
  • F = 162.45 and P = 7.32E-17 which is less than 0.05 that means the overall the model is statistically significant.

 

Conclusion: –

Beta (β) is -0.005, it is less than 1 which means that we should invest for long term.

 

 

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