{"id":20783,"date":"2024-03-29T08:50:18","date_gmt":"2024-03-29T03:20:18","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=20783"},"modified":"2024-03-29T08:50:18","modified_gmt":"2024-03-29T03:20:18","slug":"relationship-of-ambuja-cement-with-nifty-50-2","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=20783","title":{"rendered":"Relationship of Ambuja Cement with Nifty 50"},"content":{"rendered":"

Title<\/strong>: Relationship of Ambuja Cements Limited with Nifty 50.<\/p><\/blockquote>\n

Author<\/strong>: Arjun Palande<\/p><\/blockquote>\n

Introduction<\/strong>:\u00a0<\/p><\/blockquote>\n

Ambuja Cements Limited, a key player in India’s cement industry, is part of the Adani Group, renowned for its diversified sustainable businesses. Recognized for hassle-free home-building solutions and tailored products for Indian climates, Ambuja Cement prioritizes sustainability and societal impact, earning trust as a leading brand in the nation’s construction sector.<\/p><\/blockquote>\n

Objective<\/strong>:\u00a0<\/p><\/blockquote>\n

To calculate Beta and find its significance<\/p><\/blockquote>\n

Data Collectio<\/strong>n:<\/p><\/blockquote>\n

\u00a0Data for Nifty 50 and Ambuja Cements Limited was downloaded from NSE website for the period 01-03-2023 to 28-02-2024. Friday closing prices were calculated and weekly returns were found out. Weekly returns of Ambuja Cement Limited were regressed on weekly returns of Nifty 50.\u00a0<\/p><\/blockquote>\n

Data Analysis<\/strong>:\u00a0<\/p><\/blockquote>\n

1.\u00a0\u00a0\u00a0\u00a0 Equation – The equation for the regression model is Y^=0.0053\u221216.091X. Y^ represents the predicted value of the dependent variable while X is the independent variable.<\/p><\/blockquote>\n

2.\u00a0\u00a0\u00a0\u00a0 Interpretation \u2013 The negative coefficient (-16.091) indicates an inverse relationship between Ambuja Cement Limited’s returns and Nifty 50’s returns, implying that when the weekly returns of Nifty 50 increase, Ambuja Cement Limited’s returns tend to decrease, and vice versa, with approximostly a 16.091 units decrease for every one-unit increase in Nifty 50 returns. The multiple R (correlation coefficient) of 0.022 suggests a very weak positive correlation between the two variables. The R Square value of 0.00049 implies that only a negligible fraction of the variability in Ambuja Cement Limited’s returns is explained by Nifty 50’s returns. The negative Adjusted R Square indicates that the independent variable does not significantly improve the model’s fit. Furthermore, the F-statistic of 0.022, accompained by a high p-value of 0.882, suggests that the regression model lacks statistical significance, indicating that Nifty 50’s returns do not have a significant impact on Ambuja Cement Limited’s returns. Additionally, the standard error of the regression model, 0.0947, represents the average deviation of observed values from predicted values. Lastly, the low t-statistic value (-0.149) and high corresponding p-value (0.882) indicate that the coefficient is not statistically significant.<\/p><\/blockquote>\n

Conclusion<\/strong>:<\/p><\/blockquote>\n

As Beta is -16,091 i.e. less than 1which means that the company is good for long-term investment.\u00a0<\/p><\/blockquote>\n","protected":false},"excerpt":{"rendered":"

Title: Relationship of Ambuja Cements Limited with Nifty 50. Author: Arjun Palande Introduction:\u00a0 Ambuja Cements Limited, a key player in India’s cement industry, is part of the Adani Group, renowned for its diversified sustainable businesses. Recognized for hassle-free home-building solutions and tailored products for Indian climates, Ambuja Cement prioritizes sustainability and societal impact, earning trust… Continue reading Relationship of Ambuja Cement with Nifty 50<\/span><\/a><\/p>\n","protected":false},"author":139327,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[1775],"class_list":["post-20783","post","type-post","status-publish","format-standard","hentry","category-investing","tag-kbs","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/20783","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\/139327"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20783"}],"version-history":[{"count":2,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/20783\/revisions"}],"predecessor-version":[{"id":20785,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/20783\/revisions\/20785"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20783"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20783"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20783"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}