Relationship of Nifty 50 with Pidilite Industries Limited Equity
Author-Payal Tiwari
Introduction– Pidilite Industries Limited is an Indian adhesive manufacturing company based in Andheri (East), Mumbai. The company is the dominant and leading adhesives company in India. Pidilite also manufactures products across verticals such as art materials and stationery; food and fabric care; car products, adhesives, and sealants; and speciality industrial products like adhesives, pigments; textile resins, leather chemicals, and construction chemicals.
Objective- To calculate Beta of Pidilite Industries Limited and its significance.
View and Review
“Vision to take Pidilite to the next level and build an organization not just for today, but for centuries to come in a people friendly, global atmosphere has attracted top class talent”. – Madhukar Balvantray Parekh Chairman of Pidilite.
Data collection –The data is downloaded from the 1st of February 2023 to the 31st of January 2024 for Nifty 50 and Pidilite Industries Limited.
Where, Nifty 50 is independent Variable.
Pidilite is Dependent Variable.
Data Analysis:
The equation for the data is:
Pidilite Industries Limited =(-0.0610)+(0.5275)=0.4665
Where Nifty(X)=0.5275and Equity(Y)=-0.0610
N=48, R square=0.1318577, F value=6.98670
- The above equation shows the relationship between nifty 50 and pidilite industries limited. Where, nifty 50 is independent variable and Pidilite Industries Limited is dependent variable.
- The Positive sign in the equation means that there is Direct relationship between Nifty 50 and Equity of Pidilite Industries Limited i.e. If the return of Nifty50 increases then the return will also increase.
- The number of observations is 48.
- R-Square= 0.1318
- Which means13% of Pidilite Industries Limited is explained by Nifty 50. 31% are errors due to factors which are not in order.
- Figures in brackets is the t-stats for b and the p value of it is 0.01118 It is less than 0.5 which means Nifty 50 is statistically significant at 5% level.
- F is 6.9867 and the P value is 0.0118 which is also less than 0.05 which means that overall, the model is statistically significant.
Conclusion: The beta is less than 1, therefore, we should invest for long term purpose.