Introduction:
\nLarsen & Toubro Ltd, commonly known as L&T, is an Indian multinational conglomerate, with business interests in engineering, construction, manufacturing, technology and financial services, headquartered in Mumbai. The company is counted among world’s top five construction companies.<\/p>\n
Objective:
\nTo calculate \u03b2 & find its significance<\/p>\n
Data collection:
\nThe data was gathered from a secondary source, the NSE\u2019s official website. Data on the NSE\u2019s daily closing stock price & Larsen & Toubro Ltd the data has been gathered. The data has been narrowed down to the weekend (Friday) closing price only.<\/p>\n
Data Analysis:
\nRegression Statistics
\nMultiple R\t0.918495
\nR Square\t0.843633
\nAdjusted R Square\t0.840158
\nStandard Error\t80.57424
\nObservations\t47<\/p>\n
Interpretations:
\nHere, we can observe that the R square value is 0.843633, which means that 84% of weekly returns of Larsen & Toubro Ltd can be explained by Nifty. We can infer that to the given extent Larsen & Toubro Ltd does follow the Nifty trend.<\/p>\n
ANOVA
\n \tdf\tSS\tMS\tF\tSignificance F
\nRegression\t1\t1576203\t1576203\t242.7838\t9.47E-20
\nResidual\t45\t292149.4\t6492.208
\nTotal\t46\t1868352\t \t \t <\/p>\n
Interpretations:
\nH0: Nifty is not influencing the weekly returns of Larsen & Toubro Ltd
\nH1: Nifty is influencing the weekly returns of Larsen & Toubro Ltd
\nHere as the F value is 242.7838 which is more than 4, thus we reject the null hypothesis & accept the alternate hypothesis, concluding that nifty is influencing the weekly returns of Larsen & Toubro Ltd.<\/p>\n
\tCoefficients\tStandard Error\tt Stat\tP-value\tLower 95%\tUpper 95%\tLower 95.0%\tUpper 95.0%
\nIntercept\t-894.913\t163.9466\t-5.45856\t1.97E-06\t-1225.12\t-564.707\t-1225.12\t-564.707
\nX Variable 1\t0.15546\t0.009977\t15.58152\t9.47E-20\t0.135365\t0.175555\t0.135365\t0.175555<\/p>\n
Interpretations:
\nWe can observe here that the Beta value is 0.175555 meaning that 1 unit change in Nifty leads to 0.175555 change in weekly returns of Larsen & Toubro Ltd. Also, the value of beta is positive indicating the presence of a positive relationship between the two variables. The P value is 9.47E-20 which is less than 0.05, thus the model is significant at 95% confidence interval.<\/p>\n","protected":false},"excerpt":{"rendered":"
Introduction: Larsen & Toubro Ltd, commonly known as L&T, is an Indian multinational conglomerate, with business interests in engineering, construction, manufacturing, technology and financial services, headquartered in Mumbai. The company is counted among world’s top five construction companies. Objective: To calculate \u03b2 & find its significance Data collection: The data was gathered from a secondary… Continue reading Relationship between Nifty & Larsen & Toubro Ltd.<\/span><\/a><\/p>\n","protected":false},"author":91660,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[1644],"class_list":["post-16068","post","type-post","status-publish","format-standard","hentry","category-finance","tag-lt","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16068","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\/91660"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16068"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16068\/revisions"}],"predecessor-version":[{"id":16102,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16068\/revisions\/16102"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16068"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16068"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16068"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}