{"id":20677,"date":"2024-03-29T08:50:52","date_gmt":"2024-03-29T03:20:52","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=20677"},"modified":"2024-03-29T08:50:52","modified_gmt":"2024-03-29T03:20:52","slug":"relationship-of-nifty-with-sobha-ltd","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=20677","title":{"rendered":"Relationship of nifty with Sobha Ltd."},"content":{"rendered":"

Relationship of nifty with <\/span>Sobha<\/span> Ltd.<\/span>\u200b<\/p>\n

\u00a0<\/p>\n

Author: <\/span><\/span>Sumit<\/span><\/span> Motwani<\/span><\/span><\/p>\n

Introduction<\/span><\/span><\/p>\n

Sobha<\/span> Limited operates as a real estate development and construction company in India. The company engages in the construction, development, sale, management, and operation of townships, housing projects, commercial premises, and other related activities. <\/span>Sobha<\/span> also manufactures interiors, glazing and metal works, and concrete products. In addition, the company provides products for home needs, spring mattresses, and modular office furniture. <\/span>Sobha<\/span> Limited, formerly known <\/span>Sobha<\/span> Developers Ltd., was founded in 1995 and has its headquarters based in Bangalore.<\/span><\/p>\n

Objectives<\/span><\/span><\/p>\n

To find out <\/span>\u03b2<\/span> of company and its significance<\/span><\/p>\n

Data Collection<\/span><\/span><\/p>\n

Data for Nifty50 and <\/span>Sobha<\/span> Ltd has been downloaded from Yahoofinance.com for the period 1-2-23 to 31-2-24 weekly closing prices were found, weekly returns were calculated, weekly returns of <\/span>Sobha<\/span> Ltd where regressed on weekly return of Nifty50.<\/span><\/p>\n

Data Analysis<\/span><\/span><\/p>\n

Format of regression equation is Y = <\/span>\u03b1<\/span> + <\/span>\u03b2<\/span>(X)<\/span><\/p>\n

Eq<\/span><\/span>uation of <\/span><\/span>regression<\/span><\/span><\/a> of weekly returns of <\/span><\/span>Sobha<\/span><\/span> Ltd on weekly returns of Nifty50 index.<\/span><\/span><\/p>\n

Weekly returns of <\/span><\/span>Sobha<\/span><\/span> Ltd <\/span><\/span>Y = <\/span><\/span>806.6799 + 7.7856<\/span> weekly returns of Nifty50 index.<\/span><\/p>\n

\u200b\u200b\u200b\u200b\u200b(<\/span>0.0299)<\/span><\/p>\n

Where,<\/span><\/p>\n

Number of Observation: 47<\/span><\/p>\n

R square: 0.029995511<\/span><\/p>\n

F = 0.244344484<\/span><\/p>\n

P-value: 0.244344484<\/span><\/p>\n

t-stat<\/span>: 1.179634635<\/span><\/p>\n

Interpretation<\/span><\/span><\/p>\n

\u2022 <\/span>The above equation shows relationship between weekly returns of <\/span>Sobha<\/span> Ltd <\/span>company<\/span> and weekly of Nifty50 Index.<\/span><\/div>\n
\u2022 <\/span>Positive sign means direct relation, meaning if weekly returns of Nifty50 Index rise then weekly <\/span>retruns<\/span> of <\/span>Sobhs<\/span> Ltd also rises and vice-versa.<\/span><\/div>\n
\u2022 <\/span>If weekly returns of Nifty50 index rise by 1 unit, weekly re<\/span>turns of <\/span>Sobha<\/span> ltd will rise by 7.78568 unit and vice-versa.<\/span><\/div>\n
\u2022 <\/span>Figure in bracket shows t-stat for \u03b2, P-value for which is 0.24434, which is greater than 0.05 meaning \u03b2 is not significant at 5% significance level.<\/span><\/div>\n
\u2022 <\/span>Number of observation are 47, R square value is 0.02999 meaning approximately 30% of weekly returns of <\/span>Sobha<\/span>Ltd are explained by weekly returns of Nifty50 index. Balance -75.5656 (approximately) is error due to other variables which are not in the model. <\/span><\/div>\n
\u2022 <\/span>F is 0.24434, the p-value of which is 0.24434, which is more than 0.05 meaning overall, the model is not statistically significant at 5% significance level.<\/span><\/div>\n

Conclusion<\/span><\/span><\/p>\n

If \u03b2 (<\/span>7.7856<\/span>) is more than one it is good to invest for short-term.<\/span><\/p>\n

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

Relationship of nifty with Sobha Ltd.\u200b \u00a0 Author: Sumit Motwani Introduction Sobha Limited operates as a real estate development and construction company in India. The company engages in the construction, development, sale, management, and operation of townships, housing projects, commercial premises, and other related activities. Sobha also manufactures interiors, glazing and metal works, and concrete… Continue reading Relationship of nifty with Sobha Ltd.<\/span><\/a><\/p>\n","protected":false},"author":139329,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-20677","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\/20677","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\/139329"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20677"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/20677\/revisions"}],"predecessor-version":[{"id":20678,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/20677\/revisions\/20678"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20677"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20677"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20677"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}