Title: Relationship between Systango Technologies Limited with Nifty50.
Author: Satyajeet Patil
Introduction: – Incorporated in 2007, Systango Technologies Ltd deals in supplying Software and Development Services. The Company’s solutions enable companies to design, implement and manage their own customized digital platforms including Web2, Web3 and mobile applications with emphasis on data and analytics.Systango Technologies Ltd is a reputable software development firm renowned for its expertise in web, mobile, and custom software solutions. Established with a commitment to excellence, Systango employs cutting-edge technologies to deliver high-quality products and services tailored to meet the specific needs of clients globally. With a track record of success and a focus on innovation, Systango stands as a trusted partner for organizations seeking top-tier software development solutions.
Data Collection:
Data for NIFTY 50 and Systango Technologies Limited has been downloaded from NSE India website for Period of 1st March 2023 to 28th February 2024, Friday closing prices were calculated and weekly returns were found out. Weekly Returns of Systango Technologies Limited were regressed on weekly returns on NIFTY 50.
Objective: To calculate beta and its significance.
Data Analysis:
Format of regression equation is Y= α + β(X)
Equation of Systango Technologies= 2.081 + 1.279x
Equation of regression of weekly returns of Systango Technologies ltd on weekly returns of nifty50 index –
Interpretation- The above equation shows relationship of Systango Technologies and Nifty 50.
Negative sign means inverse relationship, if Nifty 50 falls then the return of Systango Technologies falls
and vice versa.
If Nifty 50 falls by 1 unit, return of Asian Paints will rise by 1.279 units vice versa.
T-stat for b is 1.150 and the p value is 0.256 which is more than 0.05, meaning b is not
statistically significant at 5% level, meaning Nifty 50 does not play a significant role for
return of Systango Technologies.
Numbers of observations are 44.
R-square is 0.030, meaning 3% of returns of Systango Technologies Limited share is explained by Nifty 50
balance 99.99% is error due to the variables not taken in the model.
F is 1.324, the P value for which is 0.256 which is more than 0.05. So the overall model is not
statistically significant.
Conclusion: –
As beta =1.279, is More than 1, therefore company is good for Short term investment.