1.TITLE -: RELATION OF VOLTAS WITH NIFTY50
2.AUTHOR -: Vidhi Sharma
3.INTRODUCTION -: Voltas Limited, a part of the Tata Group, is a prominent Indian engineering and air conditioning company founded in 1954. Known for its innovative cooling solutions and commitment to energy efficiency, Voltas serves both residential and commercial markets across various sectors. The company also engages in project execution and provides services in various sectors such as water management and engineering solutions.
4.OBJECTIVE -: To find out Beta of Voltas & its significance
Data Collection -: The data of nifty50 & Voltas 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 VOLTAS termed as Y and find regression of Y on X weekly return = (y3-y2)/y2*100.
5.Data Analysis -:
Weekly return of VOLTAS = (-1.17) + 0.60 Weekly return of nifty50
Tstat = 1.28, N = 49, R(square) = 0.03, F = 1.66 , P Value = 0.20
INTERPRETATION -: The regression analysis for Voltas indicates that its weekly return can be expressed as a linear function of the weekly return of Nifty 50, with a constant of -1.17 and a coefficient of 0.60. This suggests that for each 1% increase in Nifty 50, Voltas return is expected to increase by 0.60%. However, the T-statistic of 1.28 implies that this relationship is not statistically significant. With a sample size of 49, the R-squared value of 0.03 indicates that only 3% of the variation in Voltas returns is explained by fluctuations in Nifty 50, reflecting a very weak correlation. The F-statistic of 1.66 further suggests that the overall model is not significant. Additionally, the P-value of 0.20, which is less than 0.5, meaning beta is statistically significance for 5% level.
6.CONCLUSION -: Beta is 0.60 then invest for long term.