Title– Relationship between Nifty 50 with Bharat forge
Author- Baljitsing Harpalsing Rajput (21230023490) (Financial markets)
Introduction –
Bharat Forge, born in 1961, has risen to become a global giant in metal forming. They’re the world’s second-largest forging company, specializing in crafting high-precision components for industries like automotive, power, aerospace, and defense. From crankshafts for cars to aerostructures for airplanes, their forgings power machines across the globe.
Headquartered in Pune, India, they’ve grown to encompass 12 plants across 5 countries, making them India’s leading exporter of these critical components. But they’re not just about size; they’re deeply invested in innovation, constantly pushing boundaries in research and development. Sustainability is also a core value, with a focus on reducing environmental impact throughout their operations.
Looking ahead, Bharat Forge’s ambition burns bright. They aim to solidify their position as a global leader in metal forming, capitalizing on emerging opportunities with their diverse product portfolio, global reach, and unwavering commitment to progress.
Objective –
To calculate the beta of Bharat forge and its significance.
Views & Reviews-
B N Kalyani Chairman and Managing Director
Dear Stakeholders
It gives me immense pleasure to address all of you and provide a review of the year’s performance and our progress towards a stronger tomorrow. At the outset, I thank each one of you for the continued encouragement and support. FY 2023 has been a challenging year with continued geo-political tension, impact of which was visible in the higher energy and food prices, elevated inflation across all nations and supply chain related tightness. Despite this, for the Company, FY 2023 was a year of progress on many fronts. Right from the acquisition of JS Autocast providing entry into the high potential industrial casting sector, to securing maiden exports orders in the defence vertical, and improving our ESG scores, we saw it all transpire.
Data Collection –
The data is downloaded from the 1st of February 2023 to the 31st of January 2024 for Nifty 50 and Bharat Forge.
Nifty 50 is the independent variable.
Bharat Forge is the dependent variable.
ANOVA TABLE –
Data Analysis –
The equation for the data is –
X- Nifty 50; Y- Bharat Forge.
Y=0.350532789+1.043602387X
N= 48, R Square= 0.259247677, F value= 16.09903
The above equation shows the relationship between Nifty 50 return and Bharat Forge stock return. Where Nifty 50 is the independent variable and Bharat Forge is the dependent variable. The positive sign in the equation shows that there is a direct relationship. If, the return of Nifty 50 increases then the return of Bharat Forge will also increase and vice versa.
The number of observations is 48.
R-square is 0.259247677 which means 25.92% of Bharat Forge is explained by nifty 50 is 74.08% are errors that are not in the model.
Figures and brackets are the T stats is R-square. The P-value of this is 0.000219, it is less than 0.5 which means nifty 50 is statistically significant at the 5 % level.
F is 16.09903 and the P-value is 0.000219 which is also less than 0.5 which means the overall model is statistically significant.
Conclusion –
The beta is more than 1 for the given model which means that we should invest for the short-term period.
Reference:
- https://www.nseindia.com/get-quotes/equity?symbol=BHARATFORG
- (www.bharatforge.com)