- Relationship of nifty 50 with Dabur Industries Ltd.
- Author: Dakshata Mahadik
- Introduction:
Dabur India Limited is a leading Indian consumer goods company with interests in Hair Care, Oral care, Health Care, Skin care, Home care and food and Beverages. Dabur Ltd is an Indian multinational consumer goods company founded by S. K. Burman and headquarter in Ghaziabad.
- Objectives:
To find out of company and its significance.
- Data Collection:
Data for Nifty 50 and Dabur industry has been downloaded from Yahoo finance.com for the period 1-02-23 to 31-02-24 weekly closing prices were found , weekly returns where calculated , weekly returns of Dabur industries where regressed on weekly returns of Nifty 50.
- Data Analysis :
Format of regression equation is Y = + (x)
Equation of regression of weekly returns of Dabur Industries Ltd on weekly returns of Nifty 50 index
Weekly returns of Dabur Industries Ltd Y=547.4161+2.922283 weekly returns of Nifty 50 index. (2.56393632)
Where,
Number of observations: 48
R square = 0.125039
F = 0.013681
P value=0.013681
t stat=2.56393632
- Interpretation:
The above equation shows relationship between weekly returns of Dabur industries Ltd Company and weekly of Nifty 50 Index.
A positive sign means direct relation, meaning if weekly returns of Nifty 50 index rise then weekly returns of Dabur industries Ltd also rises and vice – versa
If weekly returns of Nifty 50 Index rise by one unit, weekly returns of Dabur industries Ltd rise by 2.922283 unit and vice- versa.
Figure in bracket shows t – stat for, P value for which is 0.013681 greater than 0.05 meaning is not significant at the 5 % significance level.
Number of observations are 48, R square value is 0.125039 meaning approximately 12% of weekly returns of Dabur industries ltd are explained by weekly return of nifty 50 index.
Balance -87.4987(approximately) is error due to other variables which are not in the model.
F is 0.013681, the P- value of which is 0.013681, which is more than 0.05 meaning overall, the model is not statistically significant at 5% significance level.
- Conclusion:
If (2.922283) is more than one it is good to invest for short – term.