- TITLE– RELATIONSHIP OF HINDUTSTAN ZINC LTD. WITH NIFTY 50.
- AUTHOR– HIMANSHI ANIL DHAWAN.
- INTRODUCTION– Hindustan Zinc Limited (HZL) is one of the leading integrated producers of zinc, lead, and silver in India. Established in 1966, it operates several mining and processing facilities across the country. The company is a subsidiary of Vedanta Resources Limited and plays a significant role in the Indian zinc industry. HZL’s shares are listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), making it a popular investment option for those interested in the mining and metals sector.
- OBJECTIVE– T0 FIND OUT BETA OF HINDUSTAN ZINC LTD. AND ITS SIGNIFICANCE.
- DATA COLLECTION– The data of NIFTY 50 & HINDUSTAN ZINC LTD. company was download from the NSE website from 1-06-2023 to 31-05-2024. Data was manipulated to find the Friday closing price & weekly return was calculated by the formula. weekly data of nifty50 termed as X, weekly data of HINDUSTAN ZINC LTD. termed as Y and find regression of Y on X weekly return = (y3-y2)/y2*100.
- DATA ANALYSIS– Weekly return of HINDUSTAN ZINC LTD.= 1.20+1.66 Weekly return of nifty50 (2.38)
tStas=2.38, N =49, R(square)=0.11, F=5.65, P Value = 0.22.
INTERPRETATION– The above equation shows the relationship between nifty50 & weekly return of HINDUSTAN ZINC LTD. The positive design before the coefficient of weekly return of nifty means there is a positive relation. If nifty rise by 1 unit, the HZL will rise by 1.66 & vise-versa tStats for Bita is written in bracket and the p value is 0.22 which is more than 0.05 which means Bita is not statistically significant at 5% level. N=49, R(square)=0.11, which means 11% of weekly return of your company are explained by nifty 50, Rest 91% are the outsider errors. F=5.65 & the P value for this is 0.22 meaning overall the model is statistically significant at 5% level.
- CONCLUSION– BITA IS 1.66, THEREFORE INVEST IN SHORT TERM.