Title– Relationship between Nifty 50 with Siemens AG
Author- sanjeet ramdhani kashyap(21230023022) (Financial markets)
Introduction –
Siemens AG is a German multinational company with a long history dating back to 1847. It is a major player in the technology sector, encompassing various industries like:
Automation and digitalization in manufacturing and processing industries
Intelligent infrastructure for buildings and distributed energy systems
Rail transport solutions
Health technology and digital healthcare services
Key facts about Siemens:
Largest industrial manufacturing company in Europe
Global market leader in industrial automation and industrial software
Employs approximately 320,000 people worldwide
Listed on the DAX and Euro Stoxx 50 stock market indices
History:
Founded in 1847 by Werner von Siemens and Johann Georg Halske
Initially focused on telegraphy and electric technologies
Expanded into various industries like electric trains, light bulbs, and medical equipment
Faced controversy for its involvement in the Nazi regime and bribery scandals
Committed to a clean energy future and exited the nuclear sector after the Fukushima disaster
Current structure:
Comprised of five principal divisions: Digital Industries, Smart Infrastructure, Mobility, Healthineers, and Financial Services
Siemens Healthineers and Siemens Mobility operate as independent entities
Other major business divisions spun off in the past include:
Infineon Technologies (semiconductor manufacturer)
Siemens Mobile (mobile phones)
Gigaset Communications (telephones)
Osram (lighting)
Siemens Energy
Objective –
To calculate the beta of Siemens AG and its significance.
Views & Reviews-
Deepak S. Parekh , Chairman
Dear Shareholders, The global economy continued to face headwinds in financial year 2023 due to geo-political tensions, high inflation and tighter monetary policies by most central banks around the world. The prognosis of a looming recession setting in during the financial year 2023 did not materialize, though uncertainties related to economic recovery and slowing growth rates across the major economies lingered. On the other hand, India’s economy remained resilient. While it is not immune to the global environment, India is in the spotlight due to its strong domestic consumption-driven economy. The capital expenditure cycle, both public and private, grew stronger, with the engineering and manufacturing sector being a key beneficiary during the financial year 2023. The energy and infrastructure sectors have been the driving force behind the increase in the order book for Corporate India.
Data Collection –
The data is downloaded from the 1st of February 2023 to the 31st of January 2024 for Nifty 50 and Siemens AG.
Nifty 50 is the independent variable.
Siemens AG is the dependent variable.
ANOVA TABLE –
Data Analysis –
The equation for the data is –
X- Nifty 50; Y- Siemens AG.
Y=0.498653553+0.496138638X
N= 48, R Square= 0.051389458, F value= 2.491976393
The above equation shows the relationship between Nifty 50 return and Siemens AG stock return. Where Nifty 50 is the independent variable and Siemens AG 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 Siemens AG will also increase and vice versa.
The number of observations is 48.
R-square is 0.051389458 which means 5% of Siemens AG is explained by nifty 50 is 95% are errors that are not in the model.
Figures and brackets are the T stats is R-square. The P-value of this is 0.1210802, it is less than 0.5 which means nifty 50 is statistically significant at the 5 % level.
F is 2.491976393 and the P-value is 0.1210802 which is also less than 0.5 which means the overall model is statistically significant.
Conclusion –
The beta is less than 1 for the given model which means that we should invest for the long-term period.
Reference:
- https://www.nseindia.com/get-quotes/equity?symbol= SIEMENS AG
- (www. siemensag.com)