{"id":21159,"date":"2024-10-10T07:10:39","date_gmt":"2024-10-10T01:40:39","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=21159"},"modified":"2024-10-10T07:10:39","modified_gmt":"2024-10-10T01:40:39","slug":"relationship-of-nestle-with-nifty-50-2","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=21159","title":{"rendered":"Relationship of Nestle with Nifty 50"},"content":{"rendered":"

Title<\/strong>: Relationship of Nestle with Nifty 50<\/p>\n

Author<\/strong>: Nishu Bhomia<\/p>\n

Introduction<\/strong>: Nestl\u00e9 is\u00a0the world’s largest food and beverage company, with over 2,000 brands and a presence in 191 countries. The number of registered shares amounts to 2’620’000’000 with a nominal value of\u00a0CHF\u00a00.10 each. The symbol of the Nestl\u00e9 share is NESN.<\/p>\n

Objective<\/strong>: To find out Beta of Nestle and its significance.<\/p>\n

Data Collection: <\/strong>Data of Nestle and Nifty 50 was downloaded from 01\/05\/23 to 30\/04\/24 taken from NSE, then data is manipulated to get Friday closing prices.<\/p>\n

Weekly returns of Nifty 50 is taken as X and weekly return of Nestle is taken as Y, then weekly returns of both were calculated, Weekly return of Nestle was regressed on weekly returns of Nifty 50.<\/p>\n

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

Weekly return of Nestle = 23.46 + (-10.41) weekly return of Nifty 50<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0(-0.69)<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 N = 47, R square = 0.01, F = 0.48, P value = 0.49\u00a0\u00a0\u00a0\u00a0<\/p>\n

Interpretation<\/strong>: The above equation depicts the relationship between weekly returns of Nestle and weekly returns of Nifty 50.<\/p>\n

The plus sign before the coefficient of Nifty 50 tells that if Nifty rises your competition will also rise & vice versa, If Nifty rises by one unit Nestle will rise by 0.90 unit, figure in the bracket is tstat for beta.<\/p>\n

The p value for which 0.49 which is more than 0.05 meaning beta is statistically not significant at 5% level.<\/p>\n

R square is 0.01 meaning 1% of company\u2019s return are explained by Nifty 50 the balance 99% may be due to fundamentals.<\/p>\n

F is 0.48 & P value is 0.49 meaning overall model is statistically insignificant.\u00a0\u00a0\u00a0\u00a0<\/p>\n

Conclusion<\/strong>: As beta is -10.40 meaning it is negative, hence avoid to invest.\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Title: Relationship of Nestle with Nifty 50 Author: Nishu Bhomia Introduction: Nestl\u00e9 is\u00a0the world’s largest food and beverage company, with over 2,000 brands and a presence in 191 countries. The number of registered shares amounts to 2’620’000’000 with a nominal value of\u00a0CHF\u00a00.10 each. The symbol of the Nestl\u00e9 share is NESN. Objective: To find out… Continue reading Relationship of Nestle with Nifty 50<\/span><\/a><\/p>\n","protected":false},"author":139503,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-21159","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\/21159","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\/139503"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21159"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21159\/revisions"}],"predecessor-version":[{"id":21160,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21159\/revisions\/21160"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21159"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21159"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21159"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}