{"id":19425,"date":"2023-12-26T17:19:15","date_gmt":"2023-12-26T11:49:15","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=19425"},"modified":"2023-12-26T17:19:15","modified_gmt":"2023-12-26T11:49:15","slug":"relationship-between-nifty-50-and-larsen-toubro-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=19425","title":{"rendered":"Relationship between Nifty 50 and Larsen & Toubro Limited."},"content":{"rendered":"

Title<\/u><\/strong>: Relationship between Nifty 50 and Larsen & Toubro Limited.<\/p>\n

\u00a0<\/p>\n

Author<\/u><\/strong>: Lalit Pareek<\/p>\n

Introduction<\/u><\/strong>: Larsen & Toubro Ltd<\/strong>, abbreviated as\u00a0L&T<\/strong>, is an Indian multinational\u00a0conglomerate company<\/a>, with business interests in\u00a0engineering<\/a>,\u00a0construction<\/a>,\u00a0manufacturing<\/a>,\u00a0technology<\/a>,\u00a0information technology<\/a>\u00a0and\u00a0financial services<\/a>, headquartered in\u00a0Mumbai<\/a>\u00a0& Technical services, headquartered in\u00a0Chennai<\/a>. The company is counted among world’s top five construction companies. It was founded by\u00a0Henning Holck-Larsen<\/a>\u00a0and\u00a0S\u00f8ren Kristian Toubro<\/a>, who were two\u00a0Danish<\/a>\u00a0engineers taking refuge in India.<\/p>\n

Objective<\/u><\/strong>: Calculate beta and find its significance.<\/p>\n

Views and Reviews<\/u><\/strong>:\u00a0<\/p>\n

Prabhudas Lilladher is bullish on Larsen and Toubro has recommended buy rating on the stock with a target price of Rs 3437 in its research report dated November 01, 2023.<\/p>\n

Larsen & Toubro (L&T) has been charged with two penalties worth Rs 111.31 crore and Rs\u00a0 127.64 crore by Qatar’s income tax authorities citing variation in the income declared by the company\u00a0against the authority\u2019s assessment, the company said in an exchange filing on November 17.<\/p>\n

The penalties have been imposed for the tax period between April 2016 to March 2017 and April 2017 to March 2018. “An appeal has been filed against the levy of this penalty as the company believes it is arbitrary and unjustified,” the\u00a0L&T\u00a0 said<\/p>\n

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\u00a0<\/p>\n

Data Collection<\/u><\/strong>: Data was downloaded from the website nseindia.com. Data was extracted for the period 1-10-22 to 30-09-2023, and all the data except the data and closing price for the end of the week excluded. The returns were calculated with the previous week\u2019s return as the base.<\/p>\n

Weekly returns of Nifty = X<\/p>\n

Weekly returns of Larsen & Toubro Ltd. = Y<\/p>\n

Linear Regression is conducted.<\/p>\n

Data Analysis<\/u><\/strong>: L&T: -2920.06 + 0.28363 \u2013 Nifty 50 \u00a0<\/p>\n

T-Stat: 10.85616<\/p>\n

N: 50, R-square: 0.842967, F: 1.61, P-value: 1.61<\/p>\n

The above equation shows the relationship between Nifty 50 and L&T Ltd., Axis bank is dependent variable and Nifty 50 is independent variable. The positive sign shows that is Nifty 50 rises L&T also rises and vice \u2013 versa.<\/p>\n

If Nifty 50 rises by 1rs L&T will increase 0.98 paisa. Income is statistical at 1% level.<\/p>\n

No. of. Observers are 50. R-square is 0.84 which means 84% of Axis Bank depends on Nifty 50. In other words, 16% is error which may be due to other variables which are not taken in the model. F is 1.61 and P-value is 1.61 which means overall, the model is statistically significant at 1% level.<\/p>\n

Conclusion<\/u><\/strong>: Beta is 1.61 Since Beta is 1.61 which is MORE than 1, it is advisable to invest for a short term as it is less volatile.<\/p>\n

References<\/u><\/strong>: \u00a0<\/p>\n

https:\/\/www.moneycontrol.com\/news\/business\/stocks\/buy-larsen-and-toubro-target-of-rs-3437-prabhudas-lilladher-11668201.html<\/a><\/p>\n

https:\/\/www.moneycontrol.com\/news\/business\/qatar-charges-lt-with-tax-penalties-worth-rs-238-9-crore-11762851.html<\/p>\n

\u00a0<\/p>\n

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\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Title: Relationship between Nifty 50 and Larsen & Toubro Limited. \u00a0 Author: Lalit Pareek Introduction: Larsen & Toubro Ltd, abbreviated as\u00a0L&T, is an Indian multinational\u00a0conglomerate company, with business interests in\u00a0engineering,\u00a0construction,\u00a0manufacturing,\u00a0technology,\u00a0information technology\u00a0and\u00a0financial services, headquartered in\u00a0Mumbai\u00a0& Technical services, headquartered in\u00a0Chennai. The company is counted among world’s top five construction companies. It was founded by\u00a0Henning Holck-Larsen\u00a0and\u00a0S\u00f8ren Kristian Toubro,… Continue reading Relationship between Nifty 50 and Larsen & Toubro Limited.<\/span><\/a><\/p>\n","protected":false},"author":139139,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-19425","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\/19425","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\/139139"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19425"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19425\/revisions"}],"predecessor-version":[{"id":19426,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19425\/revisions\/19426"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19425"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19425"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19425"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}