TITLE :- RELATIONSHIP OF NIFTY WITH REPRO INDIA LIMITED.
AUTHOR :- RASHI AGRAWAL
INTRODUCTION :- Repro India Limited is a leading integrated print solutions provider headquartered in Mumbai, India. With a robust presence in the printing and publishing industry, Repro India offers end-to-end printing services, including pre-press, printing, and post-press solutions. The company specializes in providing innovative printing technologies and customized solutions to meet the diverse needs of its clients across various sectors. Leveraging cutting-edge technology and a commitment to quality, Repro India has established itself as a reliable partner for businesses seeking high-quality printing services globally.
OBJECTIVE :- To find out BETA of REPRO INDIA LIMITED and its Significance.
DATA COLLECTION :- The Data for NIFTY 50’ and REPRO INDIA LIMITED has been taken from NSEindia.com for the period 1-02-2023 to 31-01-2024. The Data was manipulated to bring the results of Friday. Weekly Closing prices were found out. Weekly returns of Nifty and Company were calculated. Weekly returns of selected company were regressed on weekly returns of nifty50.
DATA ANALYSIS :-
Equation of regression of weekly returns of Repro India Limited (Y) on weekly returns of Nifty 50 Index (X)-
Format of Regression equation is Y = α + β(X)
weekly returns of Repro India Limited = 2.028540457 – 0.009167464 × weekly returns of Nifty 50 Index(X)
(-0.01031)
Where,
Number of Observations = 48,
R Square = 0.000023,
F = 0.00011,
P-value = 0.9918
Tstat value = -0.01031
INTERPRETATION :-
- The above equation shows relationship between weekly returns of Repro India Limited Company and weekly returns of Nifty 50 Index.
- Negative sign means inverse relation, meaning if weekly returns of Nifty 50 Index rise then weekly returns of Repro India Limited Company falls and vice-versa.
- If weekly returns of Nifty 50 Index rise by 1-unit, weekly returns of Repro India Limited Company will fall by -0.009167464 unit and vice-versa.
- Figure in bracket shows t-stat for β, P-value for which is 0.9918 which is greater than 0.05 meaning β is not statistically significant at 5% significance level.
- Number of Observations are 48, R-square value is 000023 meaning 0.002% of weekly returns of Repro India Company Limited are explained by weekly returns of Nifty 50 Index. Balance 99.998% is error due to other variables which are not in the model.
- F is 00011, the P-value of which is 0.9918, which is more than 0.05 meaning overall, the model is not statistically significant at 5% significance level.
Conclusion:
As β (-0.009167464) is less than 1, it is good to invest in Repro India Company Limited for long term.