1.TITLE -: RELATION OF PAYTM WITH NIFTY50
2.AUTHOR -: Pratiksha Gandhi
3.INTRODUCTION -: Paytm (Pay Through Mobile) is an Indian digital payment and financial services platform founded in 2010 by Vijay Shekhar Sharma. It began as a mobile recharge and utility bill payments app and has since expanded into various services, including e-commerce, financial services, UPI, and Paytm Wallet. It is widely used for mobile payments, online transactions, and financial services like savings accounts, insurance, and mutual funds. Paytm played a crucial role in popularizing digital payments in India, especially after the 2016 demonetization, and has grown to become one of the country’s leading fintech companies.
4.OBJECTIVE -: To find out Beta of Paytm & its significance
Data Collection -: The data of nifty50 & PAYTM 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 PAYTM termed as Y and find regression of Y on X weekly return = (y3-y2)/y2*100
5.Data Analysis -:
Weekly return of PAYTM = -0.58+(-0.75) Weekly return of nifty50
T Stats= -0.74, N =49, R(square)=0.01, F=0.57,
P Value = 0.45
INTERPRETATION -: The analysis of Paytm’s weekly returns in relation to the Nifty50 reveals a weak and statistically insignificant relationship. The regression equation suggests a negative association, where for every 1% increase in the Nifty50’s weekly return, Paytm’s return is expected to decrease by 0.75%. However, the low t-statistic of -0.74, coupled with a p-value of 0.45, indicates that this relationship is not statistically significant. Additionally, the R-squared value of 0.01 shows that only 1% of the variability in Paytm’s returns is explained by Nifty50, suggesting that Nifty50 is not a strong predictor of Paytm’s performance. The F-statistic of 0.57 further confirms that the overall model does not provide significant explanatory power.P-value(0.45) is less than 0.5 which meaning beta is statistically significant for 5% level.
6.CONCLUSION -: Beta is -0.75 then avoid the investment.