{"id":20792,"date":"2024-03-29T08:50:18","date_gmt":"2024-03-29T03:20:18","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=20792"},"modified":"2024-03-29T08:50:18","modified_gmt":"2024-03-29T03:20:18","slug":"relationship-of-nifty-with-rail-vikas-nigam-ltd","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=20792","title":{"rendered":"RELATIONSHIP OF NIFTY WITH RAIL VIKAS NIGAM LTD"},"content":{"rendered":"

RELATIONSHIP OF NIFTY WITH RAIL VIKAS NIGAM LTD.<\/strong>\u00a0<\/p>\n

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AUTHOR : Ronit Thorat\u00a0<\/strong>\u00a0<\/p>\n

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

Rail Vikas Nigam Limited (RVNL) is an Indian central public sector enterprise which works as the construction arm of the Ministry of Railways for project implementation and transportation infrastructure development. It was incorporated in 2003 to meet the country\u2019s surging infrastructural requirements and to implement projects on a fast-track basis as well as for creating a Railway equipment construction company. It is a \u2018Navratna\u2019 CPSE in India under the administrative control of the Indian Ministry of Railways.\u00a0<\/p>\n

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Objective :\u00a0 <\/strong>To find out Beta of Rail Vikas Nigam Ltd. and it\u2019s significance.\u00a0<\/p>\n

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Data Collection\u00a0 : <\/strong><\/p>\n

Data for Nifty 50 and Rail Vikas Company has been downloaded from nseindia.com for the period 1-12-23 to 31-1-24. Weekly closing prices were found put. Weekly returns of Rail Vikas Nigam Ltd.\u00a0were regressed on Weekly returns Nifty.\u00a0<\/p>\n

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

Format of regression equation: Y =\u03b1 + \u03b2(X)\u00a0<\/p>\n

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Weekly returns of RAIL VIKAS NIGAM Ltd.\u00a0= -2.069809559 – 0.894269158 x Weekly returns of Nifty 50\u00a0<\/p>\n

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N =\u00a0 48, R Square = 0.02092155136, F = 0.9829563338\u00a0P value = 0.3266567622\u00a0<\/p>\n

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Interpretation : <\/strong>\u00a0<\/p>\n

The above equation shows the relationship between the weekly returns of Rail Vikas Nigam Ltd.\u00a0and the weekly ,returns of Nifty 50. Negative sign means inverse relationship, meaning if price rises demand falls and vice versa. If Nifty50 rises by 1 unit, Rail Vikas Nigam Ltd.\u00a0 will falls by 0.894\u00a0units\u00a0 and vice versa.\u00a0<\/p>\n

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The value inside bracket is t-stat for b, the P-value for which is 0.3266567622\u00a0which is less than 0.05 meaning b is statistically significant at 5% level.\u00a0<\/p>\n

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Number of observations are 48. R square is 0.02092155136\u00a0meaning only 2% of Rail Vikas Nigam Ltd.\u00a0is explained by weekly returns of Nifty 50. Balance 98% is the error due to other variables which are not in the model.\u00a0\u00a0<\/p>\n

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F is 0.9829563338\u00a0, the P-value for which is\u00a0 0.3266567622 which is less than 0.05 meaning overall the model is statistically significant at 5% level.\u00a0<\/p>\n

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

As \u03b2(- 0.894269158) is less than 1, it is good to invest in Rail Vikas Nigam Ltd.\u00a0for long\u00a0term.\u00a0<\/p>\n

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RELATIONSHIP OF NIFTY WITH RAIL VIKAS NIGAM LTD.\u00a0 \u00a0 AUTHOR : Ronit Thorat\u00a0\u00a0 \u00a0 Introduction :\u00a0 Rail Vikas Nigam Limited (RVNL) is an Indian central public sector enterprise which works as the construction arm of the Ministry of Railways for project implementation and transportation infrastructure development. It was incorporated in 2003 to meet the country\u2019s… Continue reading RELATIONSHIP OF NIFTY WITH RAIL VIKAS NIGAM LTD<\/span><\/a><\/p>\n","protected":false},"author":139305,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[],"class_list":["post-20792","post","type-post","status-publish","format-standard","hentry","category-investing","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/20792","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\/139305"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20792"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/20792\/revisions"}],"predecessor-version":[{"id":20793,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/20792\/revisions\/20793"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20792"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20792"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20792"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}