Relationship of Nifty50 with Sigachi Industries.
Author : Sakshi Wagh – 125
Introduction : Sigachi Industries Limited is a pioneering name in the realm of specialty chemicals and excipients, renowned for its innovative solutions and steadfast commitment to quality. With a robust presence in the pharmaceutical, food, and nutraceutical industries, Sigachi Industries has emerged as a significant player, consistently delivering value-added products and services to its clientele. As a testament to its growth and market prominence, Sigachi Industries finds itself listed on the prestigious Nifty50 index, a reflection of its strong fundamentals, strategic vision, and enduring success in the competitive landscape of the chemical and allied sectors.
Objective : To find out of Sigachi Industries and its significance.
Data Collection : The data for Nifty50 and Sigachi Industries has been downloaded from nse.india.com for the period 1/2/2023 to 31/1/2024. Weekly closing prices was found out . Weekly returns were calculated. Weekly returns of Sigachi Industries were regress on weekly returns of Nifty.
Data Analysis :
Format of regression equation is Y= α + β(X)
Sigachi Industries share = 18.40 + 1.47
N = 49 , = 0.00023 , t-stat = -0.10438 , f = 0.0108 , P value = 0.91
The above equation shows the relationship between demand and price negative sign means inverse relationship meaning if price rises demand false and vise versa. If price rises by 1 unit demand will fall by 1.47 units and vice versa. Figure in bracket is t-stat (-0.10438) for b.
The P value for 0.91 which is greater than the 0.05 meaning b is statistically not significant . Number of observations are 49 , is 0.00023 meaning 23% o demand is explained by price (x). Balance 77% is the error due to other variables which are not in the model.
F is 0.0108 the p value of which is 0.91 which is greater than 0.05 meaning overall the model is statistically not significant .
Conclusion : As β = 1.47 is greater than 1, therefore it is good to invest for short term.