{"id":21329,"date":"2024-10-10T07:09:43","date_gmt":"2024-10-10T01:39:43","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=21329"},"modified":"2024-10-10T07:09:43","modified_gmt":"2024-10-10T01:39:43","slug":"relationship-between-hindustan-aeronautics-limited-and-nifty-50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=21329","title":{"rendered":"Relationship Between Hindustan Aeronautics Limited and NIFTY 50"},"content":{"rendered":"

Relationship Between Hindustan Aeronautics Limited and NIFTY 50<\/strong><\/em><\/p>\n

Author – Hritikant Sahoo<\/p>\n

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

Hindustan Aeronautics Limited (HAL)<\/strong>, established in 1940, is an Indian public sector aerospace and defence company headquartered in Bangalore, Karnataka. Originally founded as Hindustan Aircraft Limited, HAL\u2019s primary objective during World War II was to produce military aircraft. Over the years, it has evolved into one of the oldest and largest aerospace manufacturers globally. HAL designs, manufactures, and maintains a diverse portfolio of products, including fighter jets, transport aircraft, trainer aircraft, and helicopters. The company also contributes to avionics development, jet engines, and marine gas turbine engines.<\/p>\n

Objective :
<\/strong>
To find out the beta (\u03b2) of Hindustan Aeronautics Limited and its significance.<\/p>\n

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

The data was collected by taking the weekly return of NIFTY50 and Hindustan Aeronautics Limited of dated time period of 1 year from 1st<\/sup>\u00a0 May 2023 to 30th<\/sup> April 2024 with the help of the NSE\u00a0 website. Friday’s closing price and weekly return were calculated.<\/p>\n

The weekly return of Nifty50 was taken as (X) in terms of company (HAL) as Y and Y was regressed on X.<\/p>\n

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

Regression Equation –<\/p>\n

Y = intercept of HAL + \u03b2 Weekly return of NIFTY 50<\/p>\n

Weekly return of HAL = 123.75 + 0.58 Weekly Returns of NIFTY 50<\/p>\n

(t-stat = 0.04)<\/p>\n

\u00a0N = 48, , R= 0.00, F = 0.00, P(VALUE)= 0.67<\/p>\n

The above equation shows the relationship between Nifty 50 and Hindustan Aeronautics Limited, the Positive sign before the co-efficient of Nifty 50, tells us that there is a POSITIVE relationship. If the Nifty rises by 1unit, Hindustan Aeronautics Limited will rise by 0.58 units and vice versa.<\/p>\n

The figure in bracket is T stats is (0.04) for beta. The P-value for which is 0.67 which is MORE than 0.05, meaning \u03b2 is statistically NOT significant.<\/p>\n

For N= 48, = 0.00, which means 0% of HAL\u2019s return explained by NIFTY50.<\/p>\n

F = 0.00 and the P value for that variable is 0.97, it is MORE than 0.05 meaning the overall model is statistically NOT significant at a 5% level.<\/p>\n

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

As per the given data of Relationship between HAL and NIFTY50. We know that:\u00a0 \u03b2 value < 1, meaning Hindustan Aeronautics Limited is good for investment but for a long-term horizon.<\/p><\/p>\n","protected":false},"excerpt":{"rendered":"

Relationship Between Hindustan Aeronautics Limited and NIFTY 50 Author – Hritikant Sahoo Introduction : Hindustan Aeronautics Limited (HAL), established in 1940, is an Indian public sector aerospace and defence company headquartered in Bangalore, Karnataka. Originally founded as Hindustan Aircraft Limited, HAL\u2019s primary objective during World War II was to produce military aircraft. Over the years,… Continue reading Relationship Between Hindustan Aeronautics Limited and NIFTY 50<\/span><\/a><\/p>\n","protected":false},"author":139534,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-21329","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\/21329","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\/139534"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21329"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21329\/revisions"}],"predecessor-version":[{"id":21330,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21329\/revisions\/21330"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21329"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21329"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21329"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}