Title: RELATIONSHIP OF MAHINDRA AND MAHINDRA (M&M) WITH NIFTY 50
Author: Manan Khamesra
Introduction: Mahindra & Mahindra is an Indian automobile manufacturing company, established in 1945 and headquartered in Mumbai, Maharashtra. Mahindra & Mahindra (M&M) started as a steel trading business and has since grown into a global brand. Mahindra & Mahindra (M&M) is a large cap company that manufactures passenger cars, tractors, and commercial vehicles. As of now, Mahindra & Mahindra’s stock price is ₹3,060.20, with a market capitalization of ₹3,80,663 crore.
Objective: To find out Beta of Mahindra and Mahindra and its significant.
Data Collection: Data for Nifty 50 and Mahindra and Mahindra was downloaded from NSE site for the period 01st April 2023 to 31st March 2024. Data was manipulated to get Friday closing prices and weekly returns were calculated by the formula: (Yt-1 – Yt) / Yt*100 weekly returns of Mahindra and Mahindra was regressed on weekly returns of Nifty 50.
Data Analysis: Weekly return of Mahindra and Mahindra = -1.08 + (0.30)
N = 45, R2 = 0.0105, t stat = (0.6761), F = 0.4571, P-value = 0.5025
The above equation shows the relationship between Nifty 50 & Mahindra and Mahindra. The positive sign before 0.30 means if Nifty decrease Mahindra and Mahindra raises & vice versa. The Coefficient of Nifty 50 has t stat = (0.6761) & the P value of which is 0.5025 meaning Nifty 50 is not statistically significant. To increase the prices of Mahindra and Mahindra, R2 is 0.0105 meaning 1.05% of Mahindra and Mahindra prices are explained by Nifty 50. 98.95% depends upon other factors. F is 0.4571 & the P value of this is 0.5025 meaning it is more than 0.05 meaning the overall model is not statistically significant.
Conclusion:
0.30 coefficient is positive, so Mahindra and Mahindra is good for long term investment.