Title: Relationship of Vedanta ltd. with Nifty50
Author: – Vibhuti Madan Ghodke
Introduction: Vedanta Limited is one of the world’s foremost natural resources
conglomerates, with primary interests in aluminium, zinc-lead-silver, oil and gas, iron ore,
steel, copper, power, ferro alloys, nickel, semiconductor, and glass. With world-class
strategic assets based across India, South Africa, Namibia, and Liberia, we are rightly
positioned to create long-term value with superior cash flows.
Objectives: To calculate beta and find its significance.
Views & reviews: Vedanta ltd. share price has been relatively stable in recent years, although
it has faced some fluctuations due to market conditions. You can find detailed financial
reports and analyst reviews on their website or financial news platforms.
Data Collection: Data is downloaded from.
https://www.nseindia.com/reports-indices-historical-index-data
https://www.nseindia.com/get-quotes/equity?symbol=VEDL
Data Analysis:
Regression Equation: Return of Vedanta Ltd. =
Y= A + B * X
Y=0.3674+0.084*X
R Square = 0.00119505
P value =0.815558821 F = 0.055038085
N=48
Interpretation: The above equation shows the relationship between NIFTY 50 and Vedanta
Ltd. share. Return of Vedanta Ltd. is dependent variable and Return of NIFTY 50 is
independent variable. Here the value is positive means there is a direct relationship. That
means when the Nifty50 rise Share price also rise and when the Nifty50 decrease the share
price decreases. If NIFTY 50 price rises by 1 unit, Vedanta Ltd. share price will rise by
0.00119505 unit & vice versa. No. of observations are 48. We know that in regression we
determine the relationship between the two variables from P value. When the P value is more
than 0.05 Null Hypothesis and the P value less than 0.05 is Alternate Hypothesis. Null
hypothesis means there is no relationship between the two variable and Alternate Hypothesis
means there is relationship between the two variables. Here the P value for which is 0.8156
which means Null Hypothesis. Here the standard error is 3.484. This is happened due to some
other condition, or we can say for other variable which are not in this model. Here the F value
is 0.05503 and the P value is 0.8156 which means overall model is statically significant at 5%
significant level.
Conclusion: After doing all the analysis we conclude that our B value is 0.084, it would mean
that for every one unit increases in EPS, the stock price is estimated to increase by 0.084units,
assuming all other factors remain constant. That if you want to go for short term investment it’s a
good option for you.
References: https://www.nseindia.com/reports-indices-historical-index-data
https://www.nseindia.com/get-quotes/equity?symbol=VEDL
https://www.vedantalimited.com/eng/businesses-overview.php