{"id":19550,"date":"2024-01-01T12:34:33","date_gmt":"2024-01-01T07:04:33","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=19550"},"modified":"2024-01-01T12:34:34","modified_gmt":"2024-01-01T07:04:34","slug":"relationship-of-jk-tyres-limited-with-nifty-50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=19550","title":{"rendered":"Relationship of JK tyres Limited with Nifty 50"},"content":{"rendered":"<p>Title- Relationship of JK tyres Limited with Nifty 50\u00a0<\/p>\n<p><strong><u>Author<\/u><\/strong>&#8211;\u00a0<\/p>\n<p>Junaid Sheikh<\/p>\n<p>Batch: F3<\/p>\n<p>Roll No:21230023584<\/p>\n<p><strong><u>Introduction-<\/u><\/strong><\/p>\n<p><strong>About JK Tyres &amp;Industries Limited<\/strong>&#8211;<\/p>\n<p>The flagship company of JK Organisation, JK Tyre &amp; Industries Ltd is one of India\u2019s foremost tyre manufacturers and is also among the top 25 manufacturers in the world.<\/p>\n<p><strong>Vision of JK Tyres &amp;Industries<\/strong> <strong>Limited &#8211;<\/strong><\/p>\n<p>Be a Green and Trusted Mobility Partner.<\/p>\n<p><strong>Products-<\/strong><\/p>\n<p>Different types of tyres for two as well as four-wheeler vehicles.<\/p>\n<p><strong><u>The objective of the report-<\/u><\/strong><\/p>\n<p>To calculate beta and find its significance.<\/p>\n<p><strong><u>Views and Reviews<\/u><\/strong>&#8211;<\/p>\n<ul>\n<li>The company made a lot of improvements in the product mix&#8230; The results were supported by the product mix. Lower raw material prices also support profitability: Sanjeev Agarwal, CFO, JK Tire &amp; Industries<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<p><strong><u>Data Collection<\/u><\/strong>&#8211;<\/p>\n<ul>\n<li>To analyze the relationship between JK Tyres &amp;Industries Limited and Nifty 50\u2019s performance, data on their weekly closing prices was collected from the NSE India website for the period between 1<sup>st<\/sup> October 2022, to 31<sup>st<\/sup> September 2023.<\/li>\n<li>Their Friday closing price is calculated.<\/li>\n<li>Subsequently, returns were calculated for both JK Tyres &amp;Industries Limited and Nifty 50 by expressing the change in their weekly closing prices as a percentage of the previous week\u2019s value.<\/li>\n<li>Finally, a regression analysis was conducted to investigate how the returns of JK Tyres &amp;Industries Limited (dependent variable, y) are influenced by the returns of Nifty 50 (independent variable, x).<\/li>\n<li>This approach allows us to quantify the extent to which JK Tyres &amp; Industry&#8217;s limited performance is linked to the broader market movement represented by Nifty 50 and to decide whether to invest in the long term or not.<\/li>\n<\/ul>\n<p><strong><u>Data Analysis-<\/u><\/strong><\/p>\n<p>The mathematical relationship between JK Tyres &amp;Industries Limited (Y) and Nifty 50\u2019s returns (X) is expressed as:<\/p>\n<p>Return of JK Tyres &amp;Industries limited = 0.6206 + 1.86262 * (Return on Nifty 50)<\/p>\n<p>\u00a0(t stat =\u00a02.884319)<\/p>\n<p>Number of Observations (N):\u00a049<\/p>\n<p>R-Square:\u00a00.150387<\/p>\n<p>F-Statistic:\u00a08.319298<\/p>\n<p>P-Value:\u00a00.005902<\/p>\n<p><strong><em>Interpretation-<\/em><\/strong><\/p>\n<ul>\n<li>The above equation shows the relationship between the return of the nifty 50 index and the return of JK Tyres &amp; Industries Limited.<\/li>\n<li>Return of JK Tyres &amp; Industries limited being the dependent variable and Return of Nifty 50 index being the independent variable.<\/li>\n<li>Positive sign means if nifty 50 index rises, JK Tyres &amp; Industries limited share also rises.<\/li>\n<li>If Nifty 50 rises by 1 unit or 1 rupee, Eicher Motors Limited&#8217;s share will rise by 1.86262 Units and vice-versa.<\/li>\n<li>The number of observations is 49.<\/li>\n<li>T-stat for beta (coefficient of return on nifty 50) is 884319. The p-value for this is 0.005902 which means the return of Nifty 50 is statistically significant for the return of, JK Tyres &amp; Industries Limited at a 5 % level.<\/li>\n<li>R square is 150387 which means approx. 15% of the variance in the return of, JK Tyres &amp; Industries limited share is explained by the return of Nifty 50 meaning 85% is the error due to the variables which are not in the model.<\/li>\n<li>F is 319298&amp; P value0.005902 for this which means overall the model is statistically significant\u00a0at\u00a0a 5%\u00a0level.<\/li>\n<\/ul>\n<p><strong>Conclusion-<\/strong><\/p>\n<p>As beta is more than 1, It is good for short-term investment.<\/p>\n<p>References-<\/p>\n<p><a href=\"https:\/\/www.nseindia.com\/reports-indices-historical-index-data\">https:\/\/www.nseindia.com\/reports-indices-historical-index-data<\/a><\/p>\n<p><a href=\"https:\/\/www.nseindia.com\/get-quotes\/equity?symbol=JKTYRE\">https:\/\/www.nseindia.com\/get-quotes\/equity?symbol=JKTYRE<\/a><\/p>\n<p><a href=\"https:\/\/www.zeebiz.com\/companies\/video-gallery-mr-sanjeev-agarwal-chief-financial-officer-jk-tyre-in-talk-with-anil-singhvi-249509\">https:\/\/www.zeebiz.com\/companies\/video-gallery-mr-sanjeev-agarwal-chief-financial-officer-jk-tyre-in-talk-with-anil-singhvi-249509<\/a><\/p>\n<p>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Title- Relationship of JK tyres Limited with Nifty 50\u00a0 Author&#8211;\u00a0 Junaid Sheikh Batch: F3 Roll No:21230023584 Introduction- About JK Tyres &amp;Industries Limited&#8211; The flagship company of JK Organisation, JK Tyre &amp; Industries Ltd is one of India\u2019s foremost tyre manufacturers and is also among the top 25 manufacturers in the world. Vision of JK Tyres&hellip; <a class=\"more-link\" href=\"http:\/\/www.sachdevajk.in\/?p=19550\">Continue reading <span class=\"screen-reader-text\">Relationship of JK tyres Limited with Nifty 50<\/span><\/a><\/p>\n","protected":false},"author":139171,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-19550","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\/19550","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\/139171"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19550"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19550\/revisions"}],"predecessor-version":[{"id":19551,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19550\/revisions\/19551"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19550"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19550"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19550"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}