Title: Relationship of PVR Inox Ltd with Nifty 50.
Author: Payal Prashant Athikary
Introduction:
Current price: As of October 4, 2024, PVR Inox Ltd.’s share price was Rs 1,593.75, which was a 2.40% decrease from the previous closing price. Year-to-date performance: PVR Inox’s share price has decreased by 3.59% this year. 5-day performance: PVR Inox’s share price has decreased by 8.07% in the last 5 days. 1-month performance: PVR Inox’s share price has increased by 4.74% on BSE in the last 1 month. 3-month performance: PVR Inox’s share price has increased by 8.85% on BSE in the last 3 months. 12-month performance: PVR Inox’s share price has decreased by 5.71% on BSE in the last 12 months
Objective:
To Find out Beta of PVR Inox ltd and its significance.
Data Collection:
Data Of PVR Inox Ltd and Nifty 50 was downloaded from NSE from date 1 May 2023 to 30 April 2024. The data was manipulated to get Friday closing prices. Weekly return of Nifty 50 was taken X and weekly return of PVR Inox Ltd was taken as Y. Weekly return of PVR Inox Ltd was regressed on Nifty 50.
Data Analysis:
Weekly Return of PVR Inox Ltd= -0.04 +0.10 (weekly returns of nifty 50)
(-0.19)
N=48, R Square= 0.001, f= 0.06, p= 0.80
The above equation depicts the relationship between weekly return of PVR inox ltd and weekly return of nifty 50. The plus sign before the coefficient of nifty50 tells that if nifty50 rises PVR Inox Ltd will also rise and vice versa. If nifty50 rises by 1 unit then PVR Inox Ltd will rise by 0.90 unit. Figure in the bracket is t stats for beta. P value for which is 0.80 which is more than 0.05 meaning beta is statistically not significant at 5% level. R Square= 0.001 meaning 0.01% of companies return are explained by nifty50.The balance 99.9% may be due to fundamentals. F is 0.06 and p is 0.80 meaning overall model is not statistically significant.
Conclusion:
Beta is less than 1 invest for long term in PVR inox ltd