Introduction: MTNL is a government-owned road transport corporation in the Indian state of Maharashtra. It operates a vast network of buses across the state, connecting major cities, towns, and villages. MTNL plays a crucial role in providing affordable and accessible transportation to the people of Maharashtra.
Objective: To find out BETA of MTNL and its significance.
Data Collection: Data of Nifty50 and MTNL was downloaded from https://www.nseindia.com/ from 1st June 2023 to 30th May 2024. Weekly returns of Nifty50 which was denoted as “X” and weekly returns of Vardhman Textiles Ltd which was denoted as “Y” were calculated for Friday closing by the Formula: (y_(y-1)-〖 y〗_t)/y_t ×100. Then, “Y” was regressed on “X”.
Data Analysis: Weekly returns of MTNL
N=49, R square is 0.01, F = 0.53, P-value=0.46
Interpretation: The above equation shows the relationship between nifty50 and weekly returns of MTNL.
The positive sign before 0.61 means there is a positive relationship. The coefficient of nifty50 has t-stat 0.73 and the p-value is 0.46 which is more than 0.05 meaning, BETA is statistically significant to MTNL.
The number of observations is 49 (N=49), R square is 0.01 meaning 1% of MTNL prices are explained by nifty. F value is 0.53 and p-value is 0.46 meaning it is more than 0.05. This means that the overall model is not statistically significant.
Conclusion: Weekly returns Coefficient is 0.61 which is less than 1 so it is good for long-term investment.