TITLE : relationship of nifty 50 with blue star ltd
AUTHOR : sayyed Bajahat ali
INTRODUCTION : Blue Star Ltd is an Indian multinational home appliances company, headquartered in Mumbai. It specializes in air conditioning, commercial refrigeration and MEP (mechanical, electrical, plumbing and firefighting). It is the country’s second largest homegrown player in the air conditioning space
OBJECTIVE : To find out beta of blue star ltd and its significance
DATA COLLECTION : data for nifty 50 and blue star ltd was downloaded from NSE site for the period 1-3-23 to 28-2-24 day Friday . weekly closing prices were calculated and weekly returns of the blue star ltd were regressed on weekly returns of nifty 50
DATA ANALYSIS : equation of blue star ltd share = -0.534156683+0.000529349
Equation of regression of weekly returns of blue star ltd on weekly returns of nifty 50 index+weekly returns of blue star ltd and weekly returns of nifty fifty index
Number of observations = 48
R square = 1.58
F = 7.25
P value = 0.997
T stat = 0.0026
INTERPRETATION :
The above equation shows the relationship between weekly returns of blue star ltd company and weekly returns of nifty fifty
Positive sign means direct relationship if weekly returns of nifty fifty of rises , blue star ltd returns rises if nifty fifty rises by 1 unit blue star ltd will rise by 0.0005 units
T stat for b is 0.002693 and the p value is 0.99786 which is more than 0.05 meaning b is not statistically significant at 5% level meaning price does not play a significance role for demand the number of observations is 48
R square is 1.58 meaning 0.19654 8932of blue star ltd shares are explained by the movement in nifty 50 balance meaning 0.997862771 is error due to the variables not taken in the model
F is 7.25 the p value for which is 0.997 which is more far than 0.05 so the over all model is not statistically significant
CONCLUSION : As Beta = 0.000529349 which is less than 1 the blue star Ltd is good for long term investment
