Title: Relationship of ACC LTD. with Nifty 50.
Authors: Abhishek Prasad
Introduction: ACC LTD. is a listed Company, with 51.34% holding of Government of India and the balance is held by Institutional Investors and public. ACC LTD. has experienced notable ups and downs in its share price from April 1, 2023, to March 31, 2024, reflecting market trends and energy sector dynamics. While regulatory changes and energy demand shifts have influenced its performance, ACC LTD. remains a strong option for long-term investment due to its stable revenue and essential role in India’s energy infrastructure.
Objective: To find out Beta of ACC LTD. and its significance.
Data collection: Data for Nifty 50 and ACC LTD. was downloaded from NSE site from the period 1-4-2023 to 31-3-2024. The Data was manipulated to get Friday closing price and weekly returns were calculated by using formula (Yt-1 – Y t) Yt * 100. Weekly returns of ACC LTD. were regressed on weekly return of Nifty 50.
Data analysis:
Weekly returns of ACC LTD. =1.59 + weekly returns of Nifty 0.05
3.880
N= 46, R2=0.2553, F=0.0003, P value= 0.0003
The above equation shows the relationship between Nifty 50 and ACC LTD.. The positive sign before 0.05 means if Nifty 50 rises ACC LTD. will also rise and vice versa. The coefficient of Nifty 50 has t-stat=3.880 and P value of which is 0.37. It is more than 0.50 meaning Nifty 50 is not statistically significant to increase the prices of ACC LTD. R2=0.2553 meaning 0.01% of ACC LTD. prices are explained by Nifty 50, 99.9% depends upon other factors like fundamentals. F=0.0003 and the P-value for this is 0.0003 meaning it is more than 0.05 means overall model is statistically significant.
Conclusion: With a beta of 0.05, which is less than 1, therefore it is considered a stable option for long-term investment.