{"id":21401,"date":"2024-10-10T07:10:22","date_gmt":"2024-10-10T01:40:22","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=21401"},"modified":"2024-10-10T07:10:22","modified_gmt":"2024-10-10T01:40:22","slug":"relationship-of-itc-with-nifty50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=21401","title":{"rendered":"Relationship of ITC with NIFTY50"},"content":{"rendered":"<p><strong>Title: Relationship of ITC with NIFTY50<\/strong><\/p>\n<p><strong>Author: <\/strong>Isha Parekh (021330924013)<\/p>\n<p><strong>Introduction:<\/strong> ITC Limited is a prominent Indian conglomerate that has a varied portfolio covering FMCG, hotels, paperboards, and agribusiness. In October 2024, ITC&#8217;s shares are being traded on both the Bombay Stock Exchange and National Stock Exchange, with a share price ranging from \u20b9400 to \u20b9450, indicating high market trust. The corporation has consistently shown strong financial results, thanks to its powerful brand recognition and dedication to sustainability. ITC&#8217;s strategic plans and inventive product options set the company up well for ongoing expansion in both local and international markets.<\/p>\n<p><strong>Objective: <\/strong>To find out beta(\u03b2) of ITC and its significance.<\/p>\n<p><strong>Data Collection: <\/strong>The data was collected by taking the weekly returns of NIFTY50 and ITC of dated time of 1 year from 1<sup>st<\/sup> May 2023 to 30<sup>th<\/sup> April 2024 with the help of <a href=\"http:\/\/www.nseindia.com\/\">nseindia.com<\/a>.<\/p>\n<p>Data was manipulated to find out Friday closing prices and weekly returns for both NIFTY50 and ITC and named as X and Y respectively and after calculation Y was regressed on X by the following formula:<\/p>\n<p>\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\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0(where, t=time)<\/p>\n<p><strong>Data Analysis:<\/strong><\/p>\n<p>Regression Equation: Y(Intercept) = ITC + NIFTY50<\/p>\n<p>Weekly Returns of ITC: = (0.07) + (-0.21) weekly returns of NIFTY50\u00a0<\/p>\n<p>\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\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\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 (-0.78)\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\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\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\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<p>N = 48, R Square = 0.01, F = 0.61, P-value = 0.44<\/p>\n<p>The above equation shows the relationship between NIFTY50 and ITC<strong>.<\/strong><\/p>\n<p>Negative sign before the co-efficient of NIFTY50 tells us that there is a negative relationship. If NIFTY rises one point, ITC will go down by -0.21 points and vice versa.<\/p>\n<p>Figure in bracket is t-state for beta and the P-value for which is 0.44 which is greater than 0.05 which means beta is statistically insignificant.<\/p>\n<p>N = 48, R Square = 0.01, which means 1% of ITC\u2019s returns are explained by NIFTY50. F = 0.61 and P-value for that is 0.44, it is greater than 0.05 meaning overall model is statistically insignificant at 5% level.<\/p>\n<p><strong>Conclusion: <\/strong>As per the given data of Relationship of ITC with NIFTY50, we conclude that beta value is less than 1 and negative, means ITC is not good for investment and investment in this company is not beneficial.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Title: Relationship of ITC with NIFTY50 Author: Isha Parekh (021330924013) Introduction: ITC Limited is a prominent Indian conglomerate that has a varied portfolio covering FMCG, hotels, paperboards, and agribusiness. In October 2024, ITC&#8217;s shares are being traded on both the Bombay Stock Exchange and National Stock Exchange, with a share price ranging from \u20b9400 to&hellip; <a class=\"more-link\" href=\"http:\/\/www.sachdevajk.in\/?p=21401\">Continue reading <span class=\"screen-reader-text\">Relationship of ITC with NIFTY50<\/span><\/a><\/p>\n","protected":false},"author":139567,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-21401","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\/21401","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\/139567"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21401"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21401\/revisions"}],"predecessor-version":[{"id":21402,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21401\/revisions\/21402"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21401"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21401"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21401"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}