Relationship of Dalmia Bharat Ltd. with Nifty50
Author- 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 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
Interpretation: The above equation shows the relationship between Nifty50 & Dalmia Bharat Ltd. The negative sign before -0.2443 means there is a negative relationship. The Coefficient of Nifty50 has t stat = -0.5129 & the P value is 0.6103 which is more than 0.05 meaning Beta is not Statistically Significant.
R square is 0.0055, meaning 0.55% of Dalmia Bharat Ltd. prices explained by Nifty50. F is 0.2631 & P value is 0.6103 meaning it is more than 0.05 meaning the overall model is not statistically significant.
Conclusion: Weekly return Coefficient is (0.2443) which is negative so, this type of investment should be avoided.