{"id":21205,"date":"2024-10-10T07:10:38","date_gmt":"2024-10-10T01:40:38","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=21205"},"modified":"2024-10-10T07:10:38","modified_gmt":"2024-10-10T01:40:38","slug":"relationship-of-lti-mindtree-with-nifty-50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=21205","title":{"rendered":"Relationship of LTI MINDTREE with Nifty 50"},"content":{"rendered":"

Author:<\/b> Lavisha Nawal<\/span><\/p>\n

Introduction: <\/b>LTIMindtree operates in over 30 countries with a global workforce of more than 90,000 employees. The company serves 700+ clients across various industries, including banking, healthcare, and retail. It achieved annual revenues exceeding $4 billion in 2023. LTIMindtree is a publicly traded entity listed on the NSE and BSE in India.<\/span><\/p>\n

Objective:<\/b> To find out beta of LTI MINDTREE and its significance\u00a0<\/span><\/p>\n

Data collection:<\/b>\u00a0 The data of Nifty 50 and \u00a0LTIMindtree was downloaded from NSE website, i.e., nseindia.com for the period of 1-6-23 to 31-5-24. The data was shaped to find out Friday\u2019s closing price and its Weekly returns were calculated. Weekly return [(y<\/span>t+1 <\/span>– y<\/span>t<\/span>)\/y<\/span>t<\/span>*100] of Nifty 50 was termed as X and of <\/span>\u00a0<\/b>LTIMindtree as Y. Then, Y was regressed on X.\u00a0<\/span><\/p>\n

Data analysis:\u00a0 <\/b>Regression Equation=<\/span><\/p>\n

Weekly return of <\/span>\u00a0<\/b>LTIMindtree= 0.84+0.79 weekly return of nifty<\/span><\/p>\n

T Stat = 2.06 \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 (1.63)<\/span><\/p>\n

N= 46<\/span><\/p>\n

R<\/span>2 <\/span>= 0.08<\/span><\/p>\n

F = 4.02<\/span><\/p>\n

P-value = 0.051<\/span><\/p>\n

The above equation shows the relationship between Nifty 50 and Weekly return of LTIMindtree . The positive sign before the coefficient of weekly return of nifty tells us that there is a positive relationship. If Nifty rises by 1 unit, LTIMindtree will rise by\u00a0 0.79 units and vice versa.\u00a0<\/span><\/p>\n

Figure in the bracket is t-stat for beta and p-value is 0.051,which is less than 0.05 meaning that model is statistically significant.\u00a0<\/span><\/p>\n

R<\/span>2<\/span> is 0.08, which means only 8% of weekly returns of Company are explained by Nifty.<\/span><\/p>\n

F= 4.02 and p-value for that is 0.051 meaning the overall model is statistically significant.<\/span><\/p>\n

Conclusion:<\/b> As the beta of\u00a0 LTIMindtree (0.79) is less than 1 but positive, it would be advisable to invest for the long term.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Author: Lavisha Nawal Introduction: LTIMindtree operates in over 30 countries with a global workforce of more than 90,000 employees. The company serves 700+ clients across various industries, including banking, healthcare, and retail. It achieved annual revenues exceeding $4 billion in 2023. LTIMindtree is a publicly traded entity listed on the NSE and BSE in India.… Continue reading Relationship of LTI MINDTREE with Nifty 50<\/span><\/a><\/p>\n","protected":false},"author":139515,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[],"class_list":["post-21205","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\/21205","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\/139515"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21205"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21205\/revisions"}],"predecessor-version":[{"id":21206,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21205\/revisions\/21206"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21205"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21205"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}