Title: Relationship of Raymond Ltd with Nifty 50.
Author: Ruchi Shrivas
Introduction: Raymond is a diversified group with a strong foothold in the textile and apparel sectors. Alongside, it ventures into consumer care, realty, and engineering across national and international markets. The company’s presence spans various segments, reflecting its multifaceted business approach and global outreach.
Objective: To calculate Beta and find significance.
Data Collection: Data from Nifty 50 and Raymond Ltd was downloaded from NSE site for the period 01-03-2023 to 28-022024. Friday closing prices were calculated and weekly returns were found out. Weekly returns of Raymond Ltd were regressed on weekly returns of Nifty 50.
Data Analysis: Raymond Ltd Returns = 0.841121 + 0.022252 Nifty 50
T-stat = 1.088566
N = 48
R2 = 0.00004117
F = 0.001853
P value = 0.282141
Interpretation: The above equation shows the relationship between Nifty 50 and Raymond Ltd, Positive sign means Direct relationship. If the returns of Nifty 50 increases, the returns of Raymond Ltd increases and vice versa. This equation indicates that for every 1-unit increase in the returns of the Nifty 50 index, the returns of Raymond Ltd are expected to increase by 0.022252 units and vice versa. T- stat for Raymond Ltd is (1.088566) and P- value for which is 0.282141 which is more than 0.05, meaning Nifty 50 is not statistically significant at 5% significance level, meaning Nifty 50 returns does not play a significant role for Raymond Ltd. Number of observations are 48. R2 is 0.00004117 meaning 4% of Raymond Ltd returns is explained by Nifty 50 returns. Balance 96% is error due to the variable not taken in the model. F value is 0.001853, P value for Nifty 50 is 0.282141 which is more than 0.05. So, the overall model is not statistically significant.
Conclusion: As Beta is 0.022252 which is less than 1, so Raymond Ltd is good for long term investment.