TITLE:- Relationship of D-MART with Nifty50
Author:- Dhiren Subudhi
Introduction:-
DMart, is an Indian retail corporation that operates a chain of supermarkets and hypermarkets. The company was founded by Radhakishan Damani and is based in Mumbai. As of March 2024, DMart has 365 stores across 12 states and union territories in India. It is listed as Avenue Supermarts Limited.
Objective:- To Find out Beta of D-Mart and its significance
Data Collection:-
Data of D-Mart and Nifty 50 was downloaded from dated 1 May 2023 to 30 April 2024 from NSE. The data was manipulated to get Friday closing prices. Weekly return of Nifty 50(X) and weekly return of D-Mart(y). Weekly return of Nifty 50 was regressed on weekly return of D-Mart .
Data Analysis:-
- Weekly return of D-Mart = -0.05 + 1.35 weekly return of Nifty 50
- T-stats = 3.43
- N = 48
- R Square = 0.20
- F = 11.76
- P value = 0.001
The above equation shows the relationship between weekly return of D-Mart and weekly return of Nifty 50, positive sign before the coefficient of Nifty 50 tells that there is a positive relationship, if Nifty rises 1 unit then D-Mart will rise by 1.35(Coefficient) and vice versa .
Figure in the bracket is t-stat for beta and P value for which is 0.001, which is less than 0.5, meaning beta is statistically significant . R square is 0.20 which means 20% company’s return are explained by Nifty 50. The balance error 80% are explained by the other variable which are not in the model.
F =11.76 and P value is 0.001,it is less than 0.05 meaning overall model is statistically significant at 5% level.
Conclusion:-
Beta=1.18 , which is more than 1 and positive means good for short term investment , if Nifty is at the buttom.
