Title:– Relationship of Adani Ports & Special Economic Zone Ltd with Nifty 50
Author:- Anuj Shelar
Introduction:
Adani Ports & Special Economic Zone Ltd (APSEZ) is a leading private port operator in India, part of the Adani Group. They manage 13 ports and terminals across the country, including key locations like Mundra and Hazira1. Recently, APSEZ reported a 14% growth in cargo volumes for September 2024, driven by strong performance in container handling and liquid/gas segments.
Objective:- To Find out Beta of Adani Ports & Special Economic Zone Ltd and its significance.
Data Collection:- NSE and Adani Ports & Special Economic Zone Ltd was downloaded from period 01/05/2023 to 30/04/2024 from NSE site. We found Friday weekly closing prices of NSE and Adani Ports & Special Economic Zone Ltd. Weekly returns were calculated by the formula (Yt-1 – Yt)/Yt*100 . Weekly Returns of NIFTY is X and Adani Ports & Special Economic Zone Ltd is Y
Y is regressed on X.
Data Analysis:- Weekly Return = -0.43 + 1.90 weekly returnsmof nifty 50, N=48, R2= 0.33, F= 22.69,
P Value=1.93.
The above equation shows the relationship between NIFTY 50 and Adani Ports & Special Economic Zone Ltd positive sign before the coefficient of Nifty 50 tells us that there is a positive relationship if nifty rises 1 unit Adani Ports rises by 1.90 and vice versa.
T Stats(4.76) and P value for which is 1.93 which is more than 0.05 meaning, it is statistically significant. N=48 , R2 =0.33 means 30% of Adani Ports return are explained by NIFTY 50.
F=22.69 and P value for that is 1.93 is more than 0.05 meaning overall model is -0.43 + 1.90 model is significant at 5% level.
Conclusion:- 1.909 > 1 and positive (more than 1) means good for short term investments.