Title : Relationship of Reliance Industries with Nifty 50.
Author : Riya Kashte
Introduction : Reliance Industries Limited (RIL) is one of India’s largest companies, involved in sectors like petrochemicals, refining, telecommunications, and retail. Founded in 1960 by Dhirubhai Ambani, it has become a major player in both the Indian and global markets. RIL is best known for its telecom arm, Reliance Jio, which transformed the industry in India. The company is a significant part of the Nifty 50 index, impacting market trends with its large market presence. Historically, its stock performance has influenced the overall equity market in India.
Objective : To find out Beta of Reliance Industries and it’s significance.
Data Collection : Data for Nifty 50 and Reliance was downloaded from (www.nseindia.com) for the period (1-4-2023) to (31-3-2024) . Data was manipulated to get Friday closing prices and weekly returns were calculated by formula : (Yt−1−Y+)/Yt * 100 . Weekly returns of Reliance Industries were regressed on weekly returns of Nifty 50 .
Data Analysis :
Weekly return of Reliance Industries =−0.54 – 0.01 ×(Weekly Return Nifty 50)
(−0.1395)
N = 49 , R Square = 0.0004 , F = 0.0195 , P value = 0.89 .
The above equation shows the relationship between Nifty 50 and Reliance Industries. The Negative sign before 0.01. Negative sign means if Nifty 50 fall , Reliance Industries will also fall and vice versa. The coefficient of Nifty 50 has t stat = −0.1395 and the P value of which is 0.89 it is more than .05 meaning Nifty 50 is not statistically significant to increase the price of Reliance Industries . R square = 0.0004 meaning 0.04% of Reliance Industries prices are explained by Nifty 50 99.96% depends upon other factors like fundamentals are other factors and the P value for this is 0.89 meaning its more than .05 meaning the overall model is not statistically significant.
Conclusion : -0.01 is Negative avoid this for any investment.