{"id":21634,"date":"2024-10-11T20:53:19","date_gmt":"2024-10-11T15:23:19","guid":{"rendered":"https:\/\/www.sachdevajk.in\/?p=21634"},"modified":"2024-10-11T20:53:19","modified_gmt":"2024-10-11T15:23:19","slug":"rec-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=21634","title":{"rendered":"REC Limited"},"content":{"rendered":"<p><strong>REC Limited with Nifty 50<\/strong><\/p>\n<p><strong>Author: Ramjeet Yadav*<\/strong><\/p>\n<p><em>, ITM Business School, Kharghar, Maharashtra, India <br \/>* Corresponding Author E-mail: ramjeet1112000@gamil.com<\/em><\/p>\n<p><em>\u00a0<\/em><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Introduction: <\/strong>REC Limited, formerly Rural Electrification Corporation Limited, is\u00a0an Indian public sector company which finances and promotes power projects across India.<\/p>\n<p><strong>Objective:<\/strong> To find out \u03b2eta of REC Limited and its significance.<\/p>\n<p>\u00a0<\/p>\n<p><strong>Data Collection:<\/strong> Data for Nifty 50 and Tata Motors Limited was downloaded from <a href=\"https:\/\/www.nseindia.com\/\">https:\/\/www.nseindia.com\/<\/a> for the period 1<sup>st<\/sup> June 2023 to 30<sup>st<\/sup> May 2024. Data was manipulated to get Friday closing prices and weekly returns were calculated using formula (Y<sub>t+1<\/sub> &#8211; Y<sub>t<\/sub>) \/ Y<sub>t<\/sub> * 100. Weekly returns of REC Limited were regressed on weekly returns of Nifty 50.<\/p>\n<p>\u00a0<\/p>\n<p><strong>Data Analysis: <\/strong><\/p>\n<p>Weekly Returns of REC = 3.39 -1.04 Weekly Returns of Nifty<br \/>N = 49, R<sup>2<\/sup> = 0.05, F = 2.34, P-value = 0.13, t Stat = -1.53<\/p>\n<p><strong>Interpretation:<\/strong><br \/>The above equation shows the relationship between Nifty 50 and REC Limited. The negative sign before -1.04 \u00a0means there is a positive relationship if Nifty 50 rises by 1-unit REC Limited will rise 0.01 and vice versa. The coefficient of Nifty 50 has t Stat = -1.53, the P-value of which is 0.13 . It is more than 0.05 meaning Nifty 50 is not statistically significant to increase the price of REC Limited. R<sup>2<\/sup> is 0.05 meaning 5% of RECLimited prices are explained by Nifty 95% depends upon other factors like fundamentals. F is 2.34 and P-value is 0.13 meaning it is less than 0.05 meaning overall model is not statistically significant at 5% level.<\/p>\n<p>R^2=0.048 which means 4.8% of REC Limited returns are explained by nifty 50, the balance 95.2% is due to fundamental.<\/p>\n<p>\u00a0<\/p>\n<p>F=2.34 and P value=0.13, which means that overall model is not statistically significant at 5% level.<\/p>\n<p>\u00a0<\/p>\n<p><strong>Conclusion:<\/strong> As per the given data of RELATIONSHIP OF REC Limited WITH NIFTY50. We come at the conclusion that the Beta value &lt; 0 and negative, which means that we should avoid this company for investment, as it may be problematic .<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Introduction: REC Limited, formerly Rural Electrification Corporation Limited, is an Indian public sector company which finances and promotes power projects across India.<\/p>\n","protected":false},"author":139625,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[2017],"class_list":["post-21634","post","type-post","status-publish","format-standard","hentry","category-investing","tag-rec-limited-and-nifty-50","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21634","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\/139625"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21634"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21634\/revisions"}],"predecessor-version":[{"id":21635,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21634\/revisions\/21635"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21634"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21634"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21634"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}