{"id":21588,"date":"2024-10-10T07:09:23","date_gmt":"2024-10-10T01:39:23","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=21588"},"modified":"2024-10-10T07:09:23","modified_gmt":"2024-10-10T01:39:23","slug":"relationship-of-maruti-equity-with-nifty-50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=21588","title":{"rendered":"Relationship of Maruti Equity with Nifty 50"},"content":{"rendered":"

Author<\/strong>: Mubeen Khan<\/p>\n

Introduction<\/strong>: Maruti Suzuki India, the market leader in India’s passenger vehicle segment, was incorporated in February 1981 as a joint venture between the Government of India and Suzuki Motor Corporation (SMC) of Japan. Currently, SMC holds a 56.28% equity stake in the company, while the overall promoter holding stands at 58.19%. The remaining 41.81% is held by the public, which includes 4.90% held by mutual funds and 18.98% by Foreign Institutional Investors (FII), as of June 30, 2024. Investors interested in buying shares of Maruti Suzuki India can do so by opening a Demat account, or alternatively, they can invest through exchange-traded funds (ETFs) or mutual funds that include Maruti Suzuki in their portfolios. This makes the company accessible to a wide range of investors, providing exposure to a key player in India’s thriving automotive industry.<\/p>\n

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

Data Collection: <\/strong>Data of Maruti Equity 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 return of Nifty 50 is taken as X and weekly return of Maruti Equity \u00a0\u00a0is taken as Y, then weekly returns of both were calculated, Weekly return of Maruti Equity \u00a0\u00a0was regressed on weekly returns of Nifty 50.<\/p>\n

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

Weekly return of Maruti Equity \u00a0\u00a0= 0.53 + 0.50 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\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(1.68)<\/p>\n

N = 48, R square = 0.06, F = 2.82, P value = 0.09\u00a0\u00a0\u00a0<\/p>\n

Interpretation<\/strong>: The above equation depicts the relationship between weekly returns of Maruti Equity 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 Maruti Equity will rise by 0.90 unit, 1.68 is the T stat for beta and the p value for which 0.09 which is more than 0.05 meaning beta is statistically not significant at 5% level.<\/p>\n

R square is 0.05 meaning 5% of company\u2019s return are explained by Nifty 50 the balance 95% may be due to fundamentals.<\/p>\n

F is 2.82 & P value is 0.09 meaning overall model is statistically insignificant.\u00a0\u00a0\u00a0\u00a0<\/p>\n

Conclusion<\/strong>: As beta is 0.50 meaning the value is less than 1, hence invest for long term.\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

\u00a0<\/strong><\/p>\n

\u00a0<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Author: Mubeen Khan Introduction: Maruti Suzuki India, the market leader in India’s passenger vehicle segment, was incorporated in February 1981 as a joint venture between the Government of India and Suzuki Motor Corporation (SMC) of Japan. Currently, SMC holds a 56.28% equity stake in the company, while the overall promoter holding stands at 58.19%. The… Continue reading Relationship of Maruti Equity with Nifty 50<\/span><\/a><\/p>\n","protected":false},"author":139614,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[384],"class_list":["post-21588","post","type-post","status-publish","format-standard","hentry","category-finance","tag-itm","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21588","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\/139614"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21588"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21588\/revisions"}],"predecessor-version":[{"id":21589,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21588\/revisions\/21589"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21588"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21588"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21588"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}