CALCULATION OF BETA OF NESTLE INDIA
\n LIMITED AND ITS SIGNIFICANCE<\/p>\n
NAME OF THE AUTHOR: NASRIN PILLAI<\/p>\n
INTRODUCTION
\nNestle 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. They have more than 2000 brands ranging from global icons to local favorites, and are present in 191 countries around the world.
\nOBJECTIVES
\nTo calculate beta of Nestle India Limited and its significance<\/p>\n
DATA COLLECTION
\nData of Nestle India Limited from 01-12-2021 to 30-11-2022 from NSE website
\n\u2022\tFriday weekly closing prices has been found out
\n\u2022\tWeekly Return have been calculated with the formula of (Y2-Y1)\/Y1*100
\n\u2022\tWeekly Return of Equity have been regressed on Weekly Return of Nifty<\/p>\n
DATA ANALYSIS
\nWeekly Return of Nestle India = -0.0416 + 0.552 Weekly Return of Nifty + E
\n\u2022\tt-stat = 3.809
\n\u2022\tR2 = 0.235
\n\u2022\tF = 14.508
\n\u2022\tN = 49
\nThe above equation tells us the relationship between Weekly Return of Nestle India and Weekly Return of Nifty. The negative sign means that there is a indirect relationship. If nifty rises, equity falls and if nifty falls, equity rises. The co-efficient of weekly return of nifty is 0.0416, which means if nifty rises by 1 unit, Godrej properties will rise by 0.0416 units and vice versa.
\nNumber of Observations are 49 and t-stat is 3.809.
\nP value is 0, which is less than 0.05, means that b is statistically significant at 5%. Even it is less than 0.01, b is statistically significant at 1% level.
\nR2 is 0.235, which means that 23.5% of Y (Nestle India) is explained by X (nifty), balance of 76.5% is error. Error is due to the variables which are not in the model.
\nF is 14.508, the P value for which is 0 < 0.01, means overall the model is statistically significant.<\/p>\n
CONCLUSION
\nSince b = 0.552 is lesser than 1, it is statistically not significant.
\nNestle India Limited is not a good option for investment because for every increase in nifty there will an decrease in the equity of Nestle India.<\/p>\n","protected":false},"excerpt":{"rendered":"
CALCULATION OF BETA OF NESTLE INDIA LIMITED AND ITS SIGNIFICANCE NAME OF THE AUTHOR: NASRIN PILLAI INTRODUCTION Nestle 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. They have more than 2000 brands ranging… Continue reading Calculation of beta of Nestle India Limited and its significance<\/span><\/a><\/p>\n","protected":false},"author":108128,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,38,68,70,10],"tags":[],"class_list":["post-16872","post","type-post","status-publish","format-standard","hentry","category-economics","category-finance","category-hindi-literature","category-micro-economics","category-sales-marketing","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16872","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\/108128"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16872"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16872\/revisions"}],"predecessor-version":[{"id":16873,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16872\/revisions\/16873"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16872"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16872"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16872"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}