Title– Relationship between Nifty 50 with HCL Technologies
Author- Harshil Bolpelwar(21230023212) (OPS)
Introduction –
HCL Technologies, or HCLTech, is a leading Indian IT services company founded in 1991. It’s known for its:
Global reach: Operating in 52 countries, including major hubs in the US, Europe, and Asia.
Diverse services: Offering solutions in digital transformation, engineering, cloud computing, AI, and more.
Growth through acquisitions: Expanding its capabilities through strategic acquisitions like IBM products and Geometric Ltd.
Partnerships: Collaborating with industry leaders like Google Cloud and Dell.
HCLTech started as a software services unit within HCL and became a separate company in 1991. It went public in 1999 and has grown significantly, reaching $10 billion in revenue by 2021. In 2022, it rebranded to HCLTech to better reflect its core business.
Objective –
To calculate the beta of HCL Technologies and its significance.
Views & Reviews-
Roshni Nadar Malhotra
Dear Shareholder,
FY23 has been another year of strong growth for our company as we crossed the $12.5 billion revenue mark, now going to market as ‘HCLTech’ with a refreshed purpose: to bring together the best of technology and our people to supercharge progress. We delivered this performance in the backdrop of a challenging global economic environment. This underscores the strength and resilience of our diversified portfolio that makes us a preferred partner of global enterprises. Another notable milestone this year was HCLSoftware crossing the $1 billion ARR (Annual Recurring Revenue) mark, validating our investment in this business segment. Technology continues to be a top priority for enterprises as they recalibrate their business models for enhanced efficiencies, serving customers in a digital-first world and weaving in sustainability agendas into their strategy. While the current economic headwinds may force some businesses to defer low-priority technology spends in the short-term, co
Data Collection –
The data is downloaded from the 1st of February 2023 to the 31st of January 2024 for Nifty 50 and HCL Technologies.
Nifty 50 is the independent variable .
HCL Technologies is the dependent variable.
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ANOVA TABLE –
Data Analysis –
The equation for the data is –
X- Nifty 50; Y- HCL Technologies.
Y=0.317936X
N= 48, R Square= 0.203735515, F value= 11.769749
The above equation shows the relationship between Nifty 50 return and HCL Technologies stock return. Where Nifty 50 is the independent variable and HCL Technologies 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 HCL Technologies capital will also increase and vice versa.
The number of observations is 48.
R-square is 0.203735515 which means 20% of is HCL Technologies explained by nifty 50 is 80% are errors that are not in the model.
Figures and brackets are the T stats is R-square. The P-value of this is 0.001281647, it is less than 0.5 which means nifty 50 is statistically significant at the 5 % level.
F 11.769749 is and the P-value is 0.001281647 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://finance.yahoo.com/quote/HCLTECH.NSE/history/
- https://www..com/board_of_directors.html
- https://finance.yahoo.com/quote/%5ENSEI/history/