Title: – Relationship of Nestle India Limited with Nifty 50 and to calculate Beta.<\/p>\n
Author: – Naaz Shaikh<\/p>\n
Introduction: – Nestle India is one of the largest players in India\u2019s fast-moving consumer goods sector and has a long history in the country. Nestle India Limited was incorporated at New Delhi on 28 march 1959 and was promoted by Nestle Alimentana S.A. via a wholly owned subsidiary, Nestle Holdings Ltd., Nassau, Bahama Islands.<\/p>\n
Objectives: – To calculate Beta of Nestle India Limited and see its significance.<\/p>\n
Literature Review \/ view & Review: – 1) intercept: Intercept is -9123.36. This represent the estimated value of Nifty when the Equity is Zero. \u00a02) Coefficient: coefficient for equity is 1.6314, says that on average, for every unit increase in the equity, nifty is expected to increase by 1.63 units.<\/p>\n
Data collection: – The data for Nifty 50 and Equity has been taken for regression calculation.<\/p>\n
Data Analysis:- Nestle shares = -9123.36+1.63nifty<\/p>\n
N = 48, Rsquare = 0.68, f = 2.13<\/p>\n
The above equation shows the relationship of Nestle with nifty<\/p>\n
If nifty rises by one unit nestle will rise by 1.63 unit<\/p>\n
t-stat for b is 10.12 and the p value is 2.13 which is more than 0.05 so\u00a0 meaning nifty does impact nestle shares\u00a0<\/p>\n
Rsquare is 0.68 meaning 68% of nestle share is explained by nifty, meaning 32% depends on other fundamental<\/p>\n
F = 102.54, and p value is more than 0.05 so the model is statistically significant at 68% level<\/p>\n
Conclusion: – AS Beta is (1.63) is more than 1, so good for short term investment.<\/p>\n
Reference: –<\/p>\n
\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
Title: – Relationship of Nestle India Limited with Nifty 50 and to calculate Beta. Author: – Naaz Shaikh Introduction: – Nestle India is one of the largest players in India\u2019s fast-moving consumer goods sector and has a long history in the country. Nestle India Limited was incorporated at New Delhi on 28 march 1959 and… Continue reading Relationship of Nestle India Limited with Nifty 50 and to calculate Beta<\/span><\/a><\/p>\n","protected":false},"author":138967,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-19067","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\/19067","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\/138967"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19067"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19067\/revisions"}],"predecessor-version":[{"id":19068,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19067\/revisions\/19068"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19067"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19067"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19067"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}