{"id":21413,"date":"2024-10-10T07:10:38","date_gmt":"2024-10-10T01:40:38","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=21413"},"modified":"2024-10-10T07:10:38","modified_gmt":"2024-10-10T01:40:38","slug":"relationship-of-mrf-with-nifty50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=21413","title":{"rendered":"Relationship of MRF with Nifty50"},"content":{"rendered":"<p><strong><u>Relationship of MRF with Nifty50<\/u><\/strong><\/p>\n<p>\u00a0<\/p>\n<p><em>Mayur Shetty | 021330024331 | F4 | ITM |2024.mayurs@isu.ac.in<\/em><\/p>\n<p><em>\u00a0<\/em><\/p>\n<p><strong>Introduction:<\/strong> MRF, a leading tire manufacturer in India, has a notable relationship with Nifty 50, the benchmark stock index. As a constituent of the index, MRF\u2019s performance influences and reflects broader market trends. Investors analyse MRF&#8217;s stock movements as an indicator of industrial health and demand, making it a key player in assessing market within Nifty 50 framework.<\/p>\n<p>\u00a0<\/p>\n<p><strong>Objective:<\/strong> To find out Beta of MRF and its significance.<\/p>\n<p>\u00a0<\/p>\n<p><strong>Data Collection:<\/strong> Data was collected of MRF and Nifty50 was downloaded from NSE website from 1<sup>st<\/sup> June 2023 to 31<sup>st<\/sup> May 2024 data was manipulated to find Friday closing prices weekly return of Nifty50 was term of \u2018x\u2019 and MRF was termed as \u2018y\u2019 and we find out Y regressed on X. Weekly return was calculated by this formula (Yt+1-Yt)\/Yt *100.<\/p>\n<p>\u00a0<\/p>\n<p><strong>Data analysis:<\/strong> The equation was the weekly return of MRF is equal to 0.25+0.84 on weekly return of Nifty50 i.e. (y= 0.25+0.84) ,T stat = 2.87 ,\u00a0 N = 48, R square = 0.15, F = 8.19, P value = 0.0062.<\/p>\n<p>\u00a0<\/p>\n<p><strong>Results:<\/strong> The above equation shows the relationship between Nifty50 and weekly returns of MRF the positive sign before coefficient of weekly return of Nifty50 means there is a positive relationship if Nifty50 rises by one-unit MRF will rise by 0.84 unit and by vice-versa if it falls down it will fall by the same unit. This figure stats for Beta are written as 2.87 which is T stat and P value for this is 0.0062 if it is less than 0.05 meaning beta is significantly at 5 % level. R square = 0.15 which means 15% of weekly return of MRF of are explained by Nifty50. So, 85 percent is my error, and F is 9.85 and P value for this is 0.0062 meaning overall the model is statistically significant at 5 % level.<\/p>\n<p>\u00a0<\/p>\n<p><strong>Conclusion:<\/strong> As MRF beta is 0.84 which is less than 1 therefore it\u2019s advisable to invest for long term duration.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Relationship of MRF with Nifty50 \u00a0 Mayur Shetty | 021330024331 | F4 | ITM |2024.mayurs@isu.ac.in \u00a0 Introduction: MRF, a leading tire manufacturer in India, has a notable relationship with Nifty 50, the benchmark stock index. As a constituent of the index, MRF\u2019s performance influences and reflects broader market trends. Investors analyse MRF&#8217;s stock movements as&hellip; <a class=\"more-link\" href=\"http:\/\/www.sachdevajk.in\/?p=21413\">Continue reading <span class=\"screen-reader-text\">Relationship of MRF with Nifty50<\/span><\/a><\/p>\n","protected":false},"author":139496,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-21413","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\/21413","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\/139496"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21413"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21413\/revisions"}],"predecessor-version":[{"id":21414,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21413\/revisions\/21414"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21413"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21413"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21413"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}