Title: Relationship between mahanagar gas limited with Nifty50.
Author: MAYURESH SURYARAO
Introduction: –
Mahanagar Gas Limited (MGL) is a prominent natural gas distribution company based in Mumbai, India. Established in 1995, it’s a joint venture between GAIL (India) Limited, the Government of Maharashtra, and BG Group (formerly British Gas). MGL specializes in distributing compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai, Thane, and neighboring areas. With a focus on safety and innovation, MGL has become a key player in providing clean and sustainable energy solutions to residential, commercial, and industrial sectors. The company’s services have significantly reduced pollution levels and promoted environmental sustainability. MGL is renowned for its reliability, customer service excellence, and adherence to the highest standards of safety and environmental responsibility. It actively engages in community development initiatives and contributes to the socio-economic progress of the regions it serves.
OBJECTIVE: To calculate Beta and find SignificanceTop of Form
DATA COLLECTION: Data for NIFTY50 and MAHANAGAR GAS LTD was downloaded from NSE site for the period from 01-03-2023 to 28-02-2024, Friday closing prices were calculated an weekly retum of VIP INDUSTRIES LTD were regressed on weekly return of NIFTY50.
Data Analysis:
Format of regression equation is Y= α + β(X)
Mahanagar gas limited share= 0.33 + 0.14x
The above equation shows the relationship of Mahanagar gas limited and Nifty 50. Positive sign means direct relationship, if weekly return of Nifty50 rises, State Bank of India’s returns rises. If price rises by 1 unit, demand will fall by 0.14 units.
T-stat for b is 3.00 and the p value is 0.004 which is less than 0.05, meaning b is statistically significant at 5% level, meaning price does play a significant role for demand. The Number of observations is 48.
R-square is 0.16, meaning 16% of Mahanagar gas limited share is explained by the movement in Nifty, Balance meaning 86% is error due to the variables not taken in the model.
F is 9.01, the P value for which is 0.004 which is less than 0.05 so the overall model is statistically significant.
Conclusion: –
As β = 0.14, is less than 1, therefore the company is good for long term investment.