Relationship between Nifty & ACC
\nIntroduction \u2013
\nACC Limited (Formerly The Associated Cement Companies Limited) is one of the largest producers of cement in India. It is a subsidiary of the Holcim Group. On 1 September 2006, the name of The Associated Cement Companies Limited was changed to ACC Limited. The company had been established in Mumbai, Maharashtra on 1 August 1936.
\nACC network of over 6,400 employees, 17 cement manufacturing sites, 80 concrete plants and a nationwide presence of over 56,000 channel partners help us serve our customers. The brand ACC is a hallmark of quality and durability in cement and ready-mix concrete – to build homes for all Indians, across cities, towns, villages as well as enduring structures for infrastructure and industry. The success over the years can be attributed to our unrelenting focus on customer centricity, ethical business practices and sustainable development. The differentiated offerings are the result of our deep understanding of every home builder\u2019s needs. This approach makes our portfolio dynamic – spanning cement, construction chemicals, dry mix products and ready-mix concrete.
\nACC\u2019s brand architecture comprises the Gold range and Silver range of products assuring superior quality for general construction as well as for specialised applications and environments. Our Leak Block range of construction chemicals help provide 360 \u00b0 water resistance to structures<\/p>\n
Objective
\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 ACC has been gathered. The data has been narrowed down to the weekend (Friday) closing price only.
\nData Analysis
\nRegression Statistics
\nMultiple R\t0.811713838
\nR Square\t0.658879355
\nAdjusted R Square\t0.657492686
\nStandard Error\t112.3360832
\nObservations\t248<\/p>\n
Interpretations:
\nHere, we can observe that the R square value is 0.6588, which means that 65.88% 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.
\nANOVA
\n \tdf\tSS\tMS\tF\tSignificance F
\nRegression\t1\t5996137.136\t5996137\t475.1525\t2.20501E-59
\nResidual\t246\t3104371.314\t12619.4
\nTotal\t247\t9100508.449\t \t \t <\/p>\n
Interpretations:
\nH0: Nifty is not influencing the weekly returns of ACC
\nH1: Nifty is influencing the weekly returns of ACC
\nHere as the F value is 475.1525 which is more than 4, thus we reject the null hypothesis & accept the alternate hypothesis, concluding that nifty is influencing the weekly returns of ACC
\n \tCoefficients\tStandard Error\tt Stat\tP-value\tLower 95%\tUpper 95%\tLower 95.0%\tUpper 95.0%
\nIntercept\t-38.92722988\t101.7991408\t-0.38239\t0.7025\t-239.4363326\t161.5818728\t-239.4363326\t161.5818728
\nX Variable 1\t0.13361438\t0.006129664\t21.79799\t2.21E-59\t0.121541061\t0.1456877\t0.121541061\t0.1456877<\/p>\n
Interpretations:
\nWe can observe here that the Beta value is 161.58 meaning that 1 unit change in Nifty leads to 61.58 change in weekly returns of ACC. Also, the value of beta is positive indicating the presence of a positive relationship between the two variables.
\nThe P value is 0.006129664 which is less than 0.05, thus the model is significant at 95% confidence interval.<\/p>\n","protected":false},"excerpt":{"rendered":"
Relationship between Nifty & ACC Introduction \u2013 ACC Limited (Formerly The Associated Cement Companies Limited) is one of the largest producers of cement in India. It is a subsidiary of the Holcim Group. On 1 September 2006, the name of The Associated Cement Companies Limited was changed to ACC Limited. The company had been established… Continue reading Relationship with Nifty-50 and ACC<\/span><\/a><\/p>\n","protected":false},"author":91999,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-16070","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\/16070","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\/91999"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16070"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16070\/revisions"}],"predecessor-version":[{"id":16100,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16070\/revisions\/16100"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16070"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16070"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16070"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}