TITLE: Relationship of Nifty 50 with Manyavar Vedant Fashions Limited.
AUTHOR: Mangesh Karoti
INTRODUCTION: Manyavar Vedant Fashions Limited is a prominent Indian ethnic wear brand founded by Ravi Modi in 1999. Specializing in men’s wedding attire and traditional wear, Manyavar boasts high-quality craftsmanship and elegant designs. With a strong online and offline presence, it’s a go-to choice for men seeking culturally rich attire. Blending traditional aesthetics with contemporary trends, Manyavar offers a wide range of products suitable for weddings and festivities.
OBJECTIVE: To find out Beta of Manyavar Vedant Fashions Limited and its Significance.
DATA COLLECTION: Data for Nifty 50 and Manyavar Vedant Fashions Limited has been downloaded from NSEindia.com for the period 1-2-23 to 31-2-24. Weekly closing prices were found out. Weekly returns were calculated. Weekly returns of Railtel Corporation of India were regressed on weekly returns of Nifty.
DATA ANALYSIS: Format of Regression equation is Y = a + B(X)
Equation of regression of weekly returns of and Manyavar Vedant Fashions Limited on weekly returns of Nifty 50 Index – weekly returns of and Manyavar Vedant Fashions Limited Limited = 0.5865 – (-0.6071) x weekly returns of Nifty 50 Index
Where,
Number of Observations = 48,
R Square = 0.04724,
F = 2.2808,
P-value = 0.1378
Interpretation:
- The above equation shows relationship between weekly returns of Manyavar Vedant Fashions Limited and weekly returns of Nifty 50 Index.
- Positive sign means direct relation, meaning if weekly returns of Nifty 50 Index rise then weekly returns of Railtel Corporation of India Limited Company also rise and vice-versa.
- If weekly returns of Nifty 50 Index rise by 1-unit, weekly returns of Railtel Corporation of India Limited Company will fall 6071 by unit and vice-versa.
- Figure in bracket shows t-stat for B, P-value for which is 0.1378, which is greater than 0.05 meaning ß is not statistically significant at 5% significance level.
- Number of Observations are 48, R-square value is 0.04724 meaning 4% of weekly returns of Manyavar Vedant Fashions Limited are explained by weekly returns of Nifty 50 Index. Balance 96% is error due to other variables which are not in the model.
- F is 2.2808, the P-value of which is 0.1378, which is more than 0.05 meaning overall, the model is not statistically significant at 5% significance.
CONCLUSION: As Beta (-0.6071) is less than 1, Manyavar Vedant Fashions Limited Company is good to invest for long term.