Relationship of Dalmia Bharat Ltd. with Nifty50
Divyansh Bohara
Introduction: Dalmia Bharat Ltd., established in 1939, is a leading Indian cement manufacturer known for its focus on sustainability and innovation. The stock saw strong performance in the second half of 2023 and early 2024, peaking at ₹2,390 in January 2024. However, it declined to below ₹1,800 by May 2024, reflecting market volatility and external factors impacting investor sentiment.
Objective: To find out the Beta of Dalmia Bharat Ltd. & its significance.
Data Collection: Data of Nifty50 & Dalmia Bharat Ltd. was downloaded from the nseindia.com, for period 1st June 2023 to 31st May 2024. Data was manipulated to get Friday closing prices & weekly returns were calculated by the Formula: Weekly returns of Dalmia Bharat Ltd. were regressed on weekly returns of Nifty50.
Data Analysis: Weekly return of Dalmia Bharat Ltd. =0.58+(0.24) (0.51)
N = 49, R2 = 0.005, F = 0.26, P-value = 0.61
The above equation shows the relationship between Niffty50 & Dalmia Bharat Ltd. The Negative sign before -0.2443 means if Nifty50 raises Dalmia Bharat Ltd. falls & vice versa. The Coefficient of Nifty50 has t stat = -0.5129 & the P value of which is 0.6103 which is more than 0.05 meaning nifty 50 is not Statistically Significant to Increase the Prices of Dalmia Bharat Ltd. To increase the prices of Dalmia Bharat Ltd., R2 is 0.0055, meaning 0.55% of Dalmia Bharat Ltd. prices explained by Nifty50. 99.9% depend upon other factors like fundamentals are other factors. F is 0.2631 & the P value of this is 0.6103 meaning it is more than 0.05 meaning the overall all model is not statistically significant.
Conclusion: Weekly return Coefficient is (0.2443) which is less than 1 so it is good for long-term investment.