Title : Relationship of Nifty 50 with PAGE INDUSTRIES .
Author name : piyush jagtap
Introduction :
Page Industries Limited located in Bangalore, India is the exclusive licensee of JOCKEY International Inc. (USA) for manufacture, distribution and marketing of the JOCKEY® brand in India, Sri Lanka, Bangladesh, Nepal and the UAE. Page Industries is also the exclusive licensee of Speedo International Ltd. for the manufacture, marketing and distribution of the Speedo brand in India.
Objective :
To determine the beta value of Page industries limited relative to the Nifty 50 index and assess its statistical significance.
Literature Review :
1.Stock Market Analysis:
A study titled “Impact of Muhurat Trading on Stock Return: A Case Study of Page Industries Ltd.” examines the effect of festival trading sessions on the company’s stock returns. The study concluded that stock returns are not significantly affected by holidays, providing insights into the stock’s behavior during specific trading sessions. (kumar &singh,2023)
2. Brand Strategy and Market Penetration:
A case study titled “From Lingerie to Leisurée: A Case of Page Industries Limited” examines the company’s successful brand strategy in India. The study highlights how Page Industries transformed consumer perceptions towards innerwear, a product traditionally associated with inhibitions, through effective marketing strategies and leadership. The company’s approach led to the widespread acceptance and popularity of the Jockey brand in India.( Yashaswini,2020)
Data Collection :
Data for Page Industries Limited and Nifty 50 was downloaded for the period from 1st January, 2024 to 31st December, 2024. The data was manipulated to calculate the Friday closing prices for both indices. The Nifty 50 was represented as X and Axis Bank Limited as Y. A linear regression analysis was performed where Y was regressed on X.
Data Analysis :
Equation : The regression equation (Y = -0.448+ 0.104X)
Interpretation :
The regression equation describes the relationship between the Nifty 50 (X) and the Page Industries share price (Y). Indicating that the Page Industries share price is the dependent variable, while the Nifty 50 is the independent variable. The positive coefficient of 0.104277 suggests that for every 1% increase in the Nifty 50’s weekly return, Page Industries’ weekly share price is expected to increase by approximately 0.104%. With 47 observations, the model’s R-squared value is 0.00234, implying that approximately 0.234% of the variation in Page Industries’ weekly share price returns can be explained by changes in the Nifty 50’s weekly returns, while the remaining 99.766% is attributed to other factors not included in the model. The p-value for the slope is 0.746763, which is significantly higher than the conventional threshold of 0.05, indicating that the relationship between the Nifty 50’s weekly returns and Page Industries’ weekly share price returns is not statistically significant at the 5% level. Consequently, this model does not provide evidence of a significant linear relationship between the Nifty 50’s weekly returns and Page Industries’ weekly share price returns, suggesting that market movements have a negligible impact on the company’s share price returns compared to other potential influencing factors.
Conclusion :
Since the beta (0.1043) is less than 1 , it indicates that Page Industries Limited is a moderately risky stock compared to Nifty 50. The statistical significance of the model confirms that Nifty 50 impacts Page Industries Limited performance, but other factors also play a role.
References :
1.. Kumar, G., & Singh, B. (2023). Impact of Muhurat Trading on Stock Return: A Case Study of Page Industries Ltd. IOSR Journal of Business and Management, 25(9), 40-44.
2. Yashaswini, V., Anusha, K. V., & Nair, J. (2020). From Lingerie to Leisurée: A Case of Page Industries Limited. MDIM Business Review, 1(2), 84-95.