Relationship of Motilal Oswal Financial Limited Services With Nifty-50
Authors: Mayuri Wankhade.
Introduction:
Motilal Oswal Financial Services Limited, a prominent player in India’s financial sector, shares a dynamic relationship with the Nifty-50 index, reflecting its integral role in the country’s stock market landscape. As a leading brokerage firm and wealth management entity, Motilal Oswal’s interactions with the Nifty-50 are multifaceted, spanning research, investment advisory, and market analysis. With a reputation for insightful market perspectives and robust financial services, Motilal Oswal’s correlation with the Nifty-50 index underscores its influence on investor sentiment and market trends.
Objective: To calculate β (Beta) & find its significance.
Data Collection: Data for NIFTY 50 and Motilal Oswal Financial Services Limited was downloaded from NSE website from period “1/3/2023 – 28/2/2024”.Friday closing prices were calculated and weekly returns were found out .Weekly returns of Motilal Oswal Financial Services Limited were regressed on NIFTY 50 .
Data Analysis:
EQUATION : MOTILAL OSWAL = 0.555361 + 0.806073 (NIFTY 50)
(t-stats= 3.628517961)
N =48 ,
R-Square =0.553342
F=56.98701
p-value=0.000713
INTERPRETATION :
The above equation shows the relationship between closing price for Motilal Oswal Financial Services and Nifty -50. Positive sign means direct relationship if nifty – 50 price rises then Motilal Oswal Financial Services price also rises and vice versa. If Nifty -50 price rises by 1 unit then Motilal Oswal Financial Services price will increases by 0.806073 units and vice versa. T-stats for b is given in the bracket and the p- value for this is 0.000713 which is less than 0.05 meaning b is statistically significant at 5% level of significance meaning price of nifty-50 plays a significant role for Motilal Oswal Financial Services price. Number of observations are 48, R- Square is 0.553342 meaning 55% of nifty – 50 price is explained by
Motilal Oswal Financial Services price balance 45% error due to the variables not taken in the model . F value is 56.98701 the p – value for which is 0.000713 which is less than 0.05 so the overall model is statistically significant .
Conclusion: As β = 0.806073, is less than 1, therefore company is good for long term investment.