Title: Relationship of Polycab India Limited with Nifty 50.
Author: Purva Sameer Joshi
Introduction:
Polycab India Limited is a leading manufacturer of wires and cables in India, and also produces fast-moving electrical goods (FMEG). Polycab’s products include power cables, control cables, instrumentation cables, solar cables, building wires, flexible cables, electric fans, LED lighting, switches, switchgear, solar products, and conduits.
Objective: To find out Beta of Polycab India Limited and its Significance.
Data Collection: Data was collected from nseindia.in . Values of Friday weekly close, then the weekly returns were found using (Y t+1 – Yt) / Yt *100.
Y = Polycab India Limited
X = Nifty 50
Y was regress on X
Data Analysis: Weekly returns of Polycab India Limited = – 0.56 +0.75 of Nifty 50
(0.99) t-stat
N = 48, R Square =0.02, F= 0.99, P value= 0.32
Above equation shows relationship between Nifty 50 and Polycab India Limited. Positive science before the coefficient of Nifty 50 tells us that there is a positive relationship. If Nifty 50 rises 1 unit, Polycab India Limited rises by 0.75 points and vice versa. Figure in bracket is that for t-stat and the P value which is 0.32 is more than 0.05 the beta is not statistically significant.
N= 48, R square= 0.02 which means 2 % Polycab India Limited returns are explained by Nifty 50 and the balanced error are influenced by other variables
F= 0.99 and the P value is 0.32 it is more than 0.05 meaning overall model is not statistically significant at 5 % level.
Conclusion:
β< 1 and positive (less than 1) means good for long term investment.