Title: RELATIONSHIP OF SHOPPERS STOP LTD WITH NIFTY 50
Author: Siddhi Phofaliya
Introduction to Shoppers Stop Ltd:
. Shoppers Stop is an Indian department store chain, owned by the K Raheja Corp. There are 108 stores across 45 cities in India, with clothing, accessories, handbags, shoes, jewelry, fragrances, cosmetics, health and beauty products, home furnishing, and decor products. Shoppers Stop is listed on the BSE and NSE.
Objectives:
To find out β of Shoppers Stop Ltd and its significance
Data Collection:
Data of Shoppers stop Ltd and Nifty 50 is downloaded for period of 1st May 2023 to 30th April 2024 from NSE. And data is manipulated to get Friday closing prices. Weekly returns of Nifty 50 is taken as “x“ value and returns of Shoppers Stop Ltd is taken as “y“. Weekly returns of shoppers stop Ltd was regressed on weekly returns of Nifty 50.
Data Analysis:
Weekly returns of Shoppers Stop Ltd =-0.27(Intercept)+0.97(weekly returns of Nifty 50) 2.95 (T-stat)
N(observation)- 48, – 0.16, F- 8.73, P Value- 0.005
Interpretation
The above equation shows the relationship between weekly returns of Shoppers Stop and weekly returns of Nifty 50. The plus sign by coefficient of Nifty 50 tells if Nifty rises Shoppers Stop will also rise and vise versa. If Nifty 50 rises 1 unit, company will also rise by 0.90 unit.
2.95(Tstat per β) of p value which is 0.005 which is less than 0.5 meaning β is statistically significant at 5% Level
– 0.16 meaning 16% of companies return are explained by Nifty 50, the remaining 84% maybe due to fundamentals.
F is 8.73 and P value is 0.005 that means DATA IS STATISTICALLY SIGNIFICANT.
Conclusion:
- If β is more than 1 and Nifty is at low, invest for short term
- If β is less than 1 and Nifty at high, invest for long run.
- If β is negative, avoid it.