Relationship between Nifty & Nestle India
\nIntroduction \u2013
\nNestl\u00e9 India Limited is the Indian subsidiary of Nestl\u00e9 which is a Swiss multinational company. The company is headquartered in Gurgaon, Haryana. The company’s products include food, beverages, chocolate, and confectioneries.
\nThe company was incorporated on 28 March 1959 and was promoted by Nestle Alimentana S.A. via a subsidiary, Nestle Holdings Ltd. As of 2020, the parent company Nestl\u00e9 owns 62.76% of Nestl\u00e9 India.The company has 9 production facilities in various locations across India.
\nNESTL\u00c9 India set up its first manufacturing facility at Moga (Punjab) in 1961 followed by its manufacturing facilities at Choladi (Tamil Nadu), in 1967; Nanjangud (Karnataka), in 1989; Samalkha (Haryana), in 1992; Ponda and Bicholim (Goa), in 1995 and 1997, respectively; and Pantnagar (Uttarakhand), in 2006. In 2012, Nestl\u00e9 India set up its 8th manufacturing facility at Tahliwal (Himachal Pradesh).<\/p>\n
The 4 Branch Offices located at Delhi, Mumbai, Chennai and Kolkata help facilitate the sales and marketing activities. The NESTL\u00c9 India\u2019s Head Office is located in Gurgaon, Haryana.
\nObjective
\nTo calculate \u03b2 & find its significance
\nData collection
\n The data was gathered from a secondary source, the NSE\u2019s official website. Data on the NSE\u2019s daily closing stock price & the Nestle India has been gathered. The data has been narrowed down to the weekend (Friday) closing price only.
\nData Analysis<\/p>\n
Regression Statistics
\nMultiple R\t0.842170836
\nR Square\t0.709251718
\nAdjusted R Square\t0.708069814
\nStandard Error\t575.4416442
\nObservations\t248<\/p>\n
Interpretations:
\nHere, we can observe that the R square value is 0.842170836, which means that 84.21% of weekly returns of Nestle India Industries can be explained by Nifty.
\nWe can infer that to the given extent Nestle India does follow the Nifty trend.<\/p>\n
Interpretations:
\nH0: Nifty is not influencing the weekly returns of Nestle India
\nH1: Nifty is influencing the weekly returns of Nestle India
\nHere as the F value is 600.0927 which is more than 4, thus we reject the null hypothesis & accept the alternate hypothesis, concluding that nifty is influencing the weekly returns of Nestle India
\n \tCoefficients\tStandard Error\tt Stat\tP-value\tLower 95%\tUpper 95%\tLower 95.0%\tUpper 95.0%
\nIntercept\t739.2919\t68.1186838\t10.853\t1.12E-22\t605.1217\t873.4622\t605.1217\t873.4622
\nX Variable 1\t0.015951\t0.004119612\t3.87201\t0.000138\t0.007837\t0.024065\t0.007837\t0.024065<\/p>\n
\tCoefficients\tStandard Error\tt Stat\tP-value\tLower 95%\tUpper 95%\tLower 95.0%\tUpper 95.0%
\nIntercept\t5639.552149\t521.4661511\t10.8148\t1.48162E-22\t4612.44417\t6666.660132\t4612.444167\t6666.660132
\nX Variable 1\t0.769179825\t0.031399209\t24.49679\t6.20192E-68\t0.70733424\t0.831025409\t0.707334241\t0.831025409<\/p>\n
Interpretations:
\nWe can observe here that the Beta value is 66.66660 meaning that 1 unit change in Nifty leads to 66.66 change in weekly returns of Nestle India. Also, the value of beta is positive indicating the presence of a positive relationship between the two variables.
\nThe P value is 1.48162E-22 which is less than 0.05, thus the model is significant at 95% confidence interval.<\/p>\n","protected":false},"excerpt":{"rendered":"
Relationship between Nifty & Nestle India Introduction \u2013 Nestl\u00e9 India Limited is the Indian subsidiary of Nestl\u00e9 which is a Swiss multinational company. The company is headquartered in Gurgaon, Haryana. The company’s products include food, beverages, chocolate, and confectioneries. The company was incorporated on 28 March 1959 and was promoted by Nestle Alimentana S.A. via… Continue reading Relationship with Nifty-50 and Nestle India<\/span><\/a><\/p>\n","protected":false},"author":91966,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-16019","post","type-post","status-publish","format-standard","hentry","category-finance","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16019","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/users\/91966"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16019"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16019\/revisions"}],"predecessor-version":[{"id":16167,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16019\/revisions\/16167"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16019"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16019"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16019"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}