Title: Relationship between Voltas with Nifty50.
Author: Vaibhav Ghane
Introduction: –
Voltas Limited established in 1954 is a listed public company and part of the leading Indian multinational Tata group which has operations in over 100 countries across 6 continents and has more than a million employees. We are a Trusted brand well known for the quality of our products, extensive range, our reach & sensible pricing
Data Collection:
Data for NIFTY 50 and Voltas has been downloaded from NSE website for Period of 1st March 2023 to 28th February 2024, Friday closing prices were calculated and weekly returns was found out. Weekly Returns of Voltas were regressed on weekly returns on NIFTY 50.
Data Analysis:
Voltas share= -0.32 – 0.01x
The above equation shows relationship of Voltas and Nifty 50. Negative sign means inverse relationship, if price rises demand falls. If price rises by 1 unit, demand will fall by 0.01 units.
T-stat for b is -0.033 and the p value is 0.97 which is less than 0.05, meaning b is statistically significant at 5% level, meaning price does play a significant role for demand. Numbers of observations are 48.
R-square is 2.37, meaning 2.37% of Voltas share is explained by the movement in Nifty, Balance meaning 97.63% is error due to the variables not taken in the model.
F is 0.001091 the P value for which is 0.97 which is more than 0.05 so the overall model is not statistically significant.
Conclusion: –
As beta = – 0.01, is less than 1, therefore company is good for long term investment.