Author: Soham Patare
Siemens Ltd, a leading global conglomerate headquartered in Germany with significant operations in India, specializes in electrification, automation, and digitalization. The company established its Indian presence to serve various industrial sectors including manufacturing, energy, and infrastructure. Siemens plays a vital role in India’s industrial and technological advancement.
To determine the Beta of Siemens Ltd with respect to Nifty 50 and assess its statistical significance.
An Analysis of Siemens Ltd’s Performance in Industrial Sector – Industrial Performance Studies, 2023
Siemens Ltd has demonstrated consistent growth in India’s industrial automation and engineering sectors from 2014-2024. The company’s focus on sustainable technologies and digital solutions has driven operational growth. Analyst reports highlight stable market positioning and technological innovation as key drivers (Prabhudas Lilladher, 2023).
The data for Siemens Ltd and Nifty50 were collected for the period from 06-Dec-2024 to 01-Feb-2025. The dataset was manipulated to extract Friday closing prices, where Nifty50 was treated as the independent variable X and Siemens Ltd as the dependent variable Y. A regression analysis was conducted on this data.
Equation
Siemens Ltd = 31276.1042 + 81.0363 Nifty50
Interpretation
The regression equation describes the relationship between the Nifty 50 (X) and the Siemens Ltd share price (Y). The positive coefficient of 81.0363 suggests that for every 1% increase in the Nifty 50’s weekly return, the Siemens Ltd share price is expected to increase by approximately 81.04 points. With 19 observations, the model’s R-squared value is 0.0380, implying that approximately 3.80% of the variation in Siemens Ltd’s weekly share price returns can be explained by changes in the Nifty 50’s weekly returns, while the remaining 96.20% is attributed to other factors. The p-value for the slope is 0.4240, which is greater than the conventional threshold of 0.05, indicating that the relationship is not statistically significant at the 5% level.
Siemens Ltd beta of 81.0363 indicates a positive but weak relationship with Nifty 50. The high p-value (0.4240) suggests that market movements have limited statistical influence on Siemens Ltd’s share price, making it driven primarily by company-specific factors rather than broader market indices.
[1] Industrial Performance Studies. (2023). Siemens Ltd in Indian Industrial Sector. Journal of Industrial Analysis.
[2] Prabhudas Lilladher. (2023). Siemens Ltd Coverage Report.