Title: Relationship of SKF India Limited with Nifty50.
Authors: Sweety Dhumal
Introduction: SKF India is a leading technology and solutions provider specializing in bearings and services. The company is part of the global SKF Group, which is known for its innovative engineering solutions and high-quality products. SKF India has a reputation for paying regular dividends, which is often seen positively by investors. SKF India’s stock price has generally shown an upward trend over the years, reflecting its strong market position and consistent growth in revenue and profitability
Objective: To find out beta of SKF India Ltd and its significance.
Data collection: Data for Nifty50 and SKF India Ltd. was downloaded from NSE website from the period 1/4/2023 to 31/3/2024. Data was manipulated to get Friday closing price and weekly returns were calculated by the formula (Yt_1-Yt)/Yt*100. Weekly returns of SKF India Ltd. were regress on weekly returns of Nifty50.
Data analysis: Weekly Return of SKF India Ltd = 0.20+ (-0.81)
N= 46, R2= 0.019, t stat= 0.479, F= 0.86, P-Value= 0.36
The above Equation shows the relationship between Nifty50 and SKF India Ltd. The positive sign before the (-0.81) means if Nifty50 rises and SKF India Ltd will also rises and vice versa. The coefficient of Nifty50 has t stat (-0.93) and P-value which is 0.36 it is more than t-stat value. Nifty50 is not statistically significant to increase the price of SKF India Ltd. R2= 0.019 meaning 1.9% of SKF India Ltd. prices are explained by nifty50. 98.1% depends upon other factors like fundamentals are other factors. F= 0.86 is and the P-value for this 0.36 meaning it is more than 0.5 meaning the overall model is statistically significant.
CONCLUSION: The coefficient is (-0.81) which is negative. Therefore, avoid this for any investment.