{"id":20437,"date":"2024-03-01T08:24:17","date_gmt":"2024-03-01T02:54:17","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=20437"},"modified":"2024-03-01T08:24:17","modified_gmt":"2024-03-01T02:54:17","slug":"relationship-between-nifty-50-with-bajaj-auto","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=20437","title":{"rendered":"Relationship between Nifty 50 with Bajaj Auto"},"content":{"rendered":"

Title<\/u><\/strong>– Relationship between Nifty 50 with Bajaj Auto<\/p>\n

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Author-<\/u><\/strong> Bharat Phophalia (21230023564) (Financial markets)<\/p>\n

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Introduction – <\/u><\/strong>\u00a0<\/p>\n

Bajaj Auto, founded in 1945, is a prominent Indian automotive manufacturer known for motorcycles, scooters, and auto rickshaws. It’s the world’s third-largest motorcycle manufacturer and the largest three-wheeler manufacturer. Initially an importer, Bajaj obtained licenses to manufacture two- and three-wheelers in 1959, including a collaboration with Piaggio for Vespa scooters.<\/p>\n

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The company diversified into motorcycles in 1986 and partnered with companies like Kawasaki and KTM. It also ventured into low-cost cars with the Bajaj Qute and recently launched its electric scooter, the Chetak. Bajaj Auto has plants in India and exports its vehicles to over 80 countries.<\/p>\n

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Objective \u2013 <\/u><\/strong><\/p>\n

To calculate the beta of Bajaj Auto and its significance.<\/p>\n

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Views & Reviews- <\/u><\/strong><\/p>\n

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Niraj R. Bajaj Chairman<\/p>\n

Dear Shareholder, In my last year\u2019s letter to you, I had written, \u201cI have never seen\u2026 such a\u2026 sheer scarcity of semiconductors. No modern automobile can exist without a slew of semiconductor chips. Motorcycles and top-of-the-line electric vehicles like the Chetak are no exceptions. It is difficult to predict when this supply scarcity will end.\u201d Thankfully, this terrible supply scarcity was over by the end of the first quarter of FY2023. Thereafter, your Company was all set to increase substantially production and sales. Except for one hiccup \u2014 exports. Your Company is by far the leading exporter of motorcycles and three-wheelers. In FY2022, exports accounted for 52.7% of Bajaj Auto\u2019s net sales. Thanks to a host of factors completely outside your Company\u2019s control, exports dropped both in volume and in value.<\/p>\n

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Data Collection<\/u><\/strong> \u2013<\/strong>
The data is downloaded from the 1st<\/sup> of February 2023 to the 31st<\/sup> of January 2024 for Nifty 50 and Bajaj Auto.<\/p>\n

Nifty 50 is the independent variable.<\/p>\n

Bajaj Auto is the dependent variable.<\/p>\n

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ANOVA TABLE \u2013 <\/strong><\/p>\n

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Data Analysis<\/u><\/strong> \u2013<\/p>\n

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The equation for the data is \u2013<\/p>\n

X- Nifty 50; Y-Bajaj Auto.<\/p>\n

Y=0.99115844+0.83882832X<\/p>\n

N= 48, R Square= 0.160288, F value= 8.78074<\/p>\n

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The above equation shows the relationship between Nifty 50 return Bajaj Auto stock return. Where Nifty 50 is the independent variable and Bajaj Auto is the dependent variable. The positive sign in the equation shows that there is a direct relationship. If, the return of Nifty 50 increases then the return of Bajaj Auto will also increase and vice versa.<\/p>\n

The number of observations is 48.<\/p>\n

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R-square is 0.160288 which means 16% of Bajaj Auto is explained by nifty 50 is 84% are errors that are not in the model.<\/p>\n

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Figures and brackets are the T stats is R-square. The P-value of this is 0.00480745, it is less than 0.5 which means nifty 50 is statistically significant at the 5 % level.<\/p>\n

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F is 8.7807 and the P-value is 0.00480745 which is also less than 0.5 which means the overall model is statistically significant.<\/p>\n<\/p>\n

Conclusion<\/u><\/strong> \u2013<\/p>\n

The beta is less than 1 for the given model which means that we should invest for the long-term period.<\/p>\n

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Reference:<\/strong><\/p>\n

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  1. https:\/\/www.nseindia.com\/get-quotes\/equity?symbol= Bajaj Auto<\/li>\n
  2. (www.bajajauto.com)<\/li>\n<\/ol>\n

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

    Title– Relationship between Nifty 50 with Bajaj Auto \u00a0 Author- Bharat Phophalia (21230023564) (Financial markets) \u00a0 Introduction – \u00a0 Bajaj Auto, founded in 1945, is a prominent Indian automotive manufacturer known for motorcycles, scooters, and auto rickshaws. It’s the world’s third-largest motorcycle manufacturer and the largest three-wheeler manufacturer. Initially an importer, Bajaj obtained licenses to… Continue reading Relationship between Nifty 50 with Bajaj Auto<\/span><\/a><\/p>\n","protected":false},"author":139390,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-20437","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\/20437","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\/139390"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20437"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/20437\/revisions"}],"predecessor-version":[{"id":20438,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/20437\/revisions\/20438"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20437"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20437"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20437"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}