Relationship of Page Industries with NIFTY<\/p>\n
Author: Prajakta Bansod
\nIntroduction:
\nPage Industries Limited is an Indian manufacturer and retailer of innerwear, loungewear and socks, headquartered in Bangalore. It is the exclusive licensee of Jockey International in India, Sri Lanka, Nepal, Bangladesh, the United Arab Emirates, Oman, Qatar, Maldives and Bhutan. In 2011, it licensed Speedo swimwear from Pentland Group for India and Sri Lanka. The company was founded in 1994 by Sunder Genomal and his brothers Nari and Ramesh, and together they hold a 54% stake in it. <\/p>\n
Objective: Calculation of Beta of Page Industries and its Significance<\/p>\n
Literature Review:
\n1.\tTail Behaviour of the Nifty-50 Stocks during Crises Periods<\/p>\n
The EGARCH model can be used to estimate secondary volatility effects of stock index returns of the NIFTY50 . In addition, the EGARCH model also provides significant results related to the presence of leverage effects (asymmetry) in some financial series.It also indicates that negative shocks (volatility) will repeat the negative shocks for a longer period of time. One of the main limitations of this research study is the selection of only one stock market, such as the Indian stock market. For future research studies, we will consider a comparative empirical analysis between the countries of the European Union and BRICS member states. Moreover, the research methodology will be diversified by including hybrid techniques and we will also extend the selected time interval. (Birau Et al 2021)<\/p>\n
2.\tBeta Estimation, Forecasting and Convergence
\nWe performed the estimation of Beta coefficients for the broadest possible analyzed the stocks characterized by the statistically significant estimates. We have confirmed the existence of Beta convergence effect, determined the Beta convergence level and found that it is much lower than the \u201cgrand mean\u201d of Beta equal to 1. (Brzeszczy\u0144ski and Gajdka 2007)<\/p>\n
Data Collection:
\n\u2022\tThe data was collected from Yahoo Finance website (https:\/\/www.yahoo.com\/) from 1 April 2022 to 31 March 2023.
\n\u2022\tData was manipulated by Friday closing prices.
\n\u2022\tWeekly Returns of NIFTY are termed as x.
\n\u2022\tWeekly Returns OF Page industries is termed as Y.<\/p>\n
Data Analysis:
\nPage Industries Returns = -0.28 + 0.62 nifty returns
\n (2.68)
\nN=49 , R2=0.13 , F=7.20
\nSignificance Value = 0.0099
\nResult \u2013
\nAbove equation shows relationship between Nifty(X) and Abbott India ltd.(Y). positive sign means there is direct relationship which means if X Rises Y also rises and vice versa. In this equation b = 0.62 if X rises one-unit demand will rise 0.62 units. t- stat for b (2.68) is more than the table value so b is statistically significant at 5% level. R2 is 0.13 which means 1.3% of y is explained by x. similarly f is 7.20 which is also more than table value means overall module is statistically significant at 5% level.<\/p>\n
Conclusion \u2013
\n\u2022\tThe beta 0.62 is less than 1 that means the company is stable and it is good for long term investment. <\/p>\n
References \u2013 <\/p>\n
\u2022\tJanusz Brzeszczy\u0144ski & Jerzy Gajdka, 2007. “Beta Estimation, Forecasting and Convergence,” FindEcon Chapters: Forecasting Financial Markets and Economic Decision-Making, in: W\u0142adys\u0142aw Milo & Piotr Wdowi\u0144ski & Grzegorz Szafra\u0144ski (ed.), FindEcon Monograph Series: Advances in Financial Market Analysis, edition 1, volume 4, chapter 6, pages 99-110, University of Lodz.
\n\u2022\tRamona Birau & Jatin Trivedi & Cristi Spulbar, 2021. “Estimating Volatility and Investment Risk: An Empirical Case Study for NIFTY MIDCAP 50 Index of National Stock Exchange (NSE) in India,” Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 691-696, August.<\/p>\n","protected":false},"excerpt":{"rendered":"
Relationship of Page Industries with NIFTY Author: Prajakta Bansod Introduction: Page Industries Limited is an Indian manufacturer and retailer of innerwear, loungewear and socks, headquartered in Bangalore. It is the exclusive licensee of Jockey International in India, Sri Lanka, Nepal, Bangladesh, the United Arab Emirates, Oman, Qatar, Maldives and Bhutan. In 2011, it licensed Speedo… Continue reading Relationship of Page Industries with NIFTY<\/span><\/a><\/p>\n","protected":false},"author":112039,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[37,38,46,61,69,9,70],"tags":[],"class_list":["post-17455","post","type-post","status-publish","format-standard","hentry","category-economics","category-finance","category-investing","category-legal-issues","category-macro-economics","category-management","category-micro-economics","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/17455","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\/112039"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=17455"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/17455\/revisions"}],"predecessor-version":[{"id":17522,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/17455\/revisions\/17522"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=17455"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=17455"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=17455"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}