Relation of NESCO with NIFTY 50
AUTHOR: Neha Mishra
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SUMMARY OUTPUT |
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Regression Statistics |
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Multiple R |
0.90986366 |
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R Square |
0.827851879 |
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Adjusted R Square |
0.824109529 |
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Standard Error |
571.6079513 |
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Observations |
48 |
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ANOVA |
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df |
SS |
MS |
F |
Significance F |
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Regression |
1 |
72277763.85 |
72277763.85 |
221.2117 |
3.41283E-19 |
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Residual |
46 |
15029839.9 |
326735.65 |
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Total |
47 |
87307603.75 |
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Coefficients |
Standard Error |
t Stat |
P-value |
Lower 95% |
Upper 95% |
Lower 95.0% |
Upper 95.0% |
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Intercept |
12472.225 |
520.1967762 |
23.97597519 |
1.23E-27 |
11425.1232 |
13519.3268 |
11425.1232 |
13519.3268 |
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X Variable 1 |
11.97709593 |
0.805280969 |
14.87318886 |
3.41E-19 |
10.35614941 |
13.59804245 |
10.35614941 |
13.59804245 |
INTRODUCTION: NESCO Ltd is a diversified Indian based company with business interest in the engineering, realty and service sector. Company has no debt for last 5 years. Company has spent 2.24% of its operating revenues towards interest expenses and 3.6% towards employee cost in the year ending March 31,2023.
OBJECTIVE: To find out Beta of NESCO and its significant
DATA COLLECTION: Data of NESCO of NIFTY 50 was downloaded of 1st May 2023 to 30th April 2024 from NCE site and was found out weekly closing price of Friday were found of NESCO’s Equity and Nifty 50. Weekly returns was calculated by formula C3-C2/C2*100 Nifty 50 is depicted as X and Equity prices are depicted as Y.
DATA ANALYSIS:
Weekly return of NESCO = 12472.26 + 11.98 = 12484.
N=48
R2= 0.83
F= 221.21
P value /Significance value= 3.41
The Above equation, shows the relationship between Nifty50 &NESCO. Positive sign before the co- efficient of NIFTY 50 tells us that there is the positive relationship. If NIFTY rises 1 unit NESCO will rise by 11.98 and visa versa. t-stat for beta and p value for which is 14.87 which is more than 3.41 means Beta is statistically significant. N=48 (N= observation), R2= 0.83 which means 83 % of NESCO’s return are explained by NIFTY 50. F=221.21 and p value for that is 14.87 it is less than 3.41 means over all model is statistically significant at 341 % level.
CONCLUSION:
If Beta is more than1 and positive, NESCO is good for short term investment if NIFTY is at bottom.