{"id":22689,"date":"2025-03-24T22:15:34","date_gmt":"2025-03-24T16:45:34","guid":{"rendered":"https:\/\/www.sachdevajk.in\/?p=22689"},"modified":"2025-03-24T22:15:34","modified_gmt":"2025-03-24T16:45:34","slug":"relationship-of-mahindra-mahindra-ltd-with-nifty-50-2","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=22689","title":{"rendered":"Relationship of Mahindra & Mahindra Ltd. with Nifty 50"},"content":{"rendered":"

Title<\/span><\/u><\/b>: Relationship of Mahindra & Mahindra Ltd. with Nifty 50<\/span><\/p>\n

Author<\/span><\/u><\/b>: Manjushree Sunil Umbrajkar<\/span><\/p>\n

Introduction<\/span><\/u><\/b>: <\/span>Mahindra & Mahindra\u00a0is an Indian automobile manufacturing company headquartered in\u00a0Mumbai,\u00a0Maharashtra. It was established in 1945 as Mahindra & Mohammed and later renamed Mahindra & Mahindra. Part of the\u00a0Mahindra Group, M&M is one of the largest vehicle manufacturers by production in India; the\u00a0Mahindra Tractors\u00a0subsidiary is the largest manufacturer of\u00a0tractors\u00a0in the world by volume.\u00a0It was ranked 17th on a list of top companies in India by\u00a0Fortune India 500\u00a0in 2018.\u00a0Its major competitors in the Indian vehicular market include\u00a0Maruti Suzuki India\u00a0and\u00a0Tata Motors.\u00a0Dr. Anish Shah is the current CEO and Managing Director of Mahindra & Mahindra.<\/span><\/p>\n

Objective<\/span><\/u><\/b>: To find beta of Mahindra & Mahindra and its significance.<\/span><\/p>\n

Literature Review<\/span><\/u><\/b>: <\/span><\/p>\n

1.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Event study on stock prices of Mahindra and Mahindra Ltd<\/span><\/p>\n

Arora et al. (2015) conducted a study titled “Event Study on Stock Prices of Mahindra and Mahindra Ltd.” to analyze the impact of corporate events on the company’s stock prices. Using the event study methodology, the research examines whether significant announcements, such as earnings reports, mergers, or policy changes, led to abnormal stock returns. By evaluating price movements before and after these events, the study provides insights into market efficiency and investor behavior in response to new information. The findings contribute to understanding how quickly and effectively the stock market incorporates corporate news.<\/span><\/p>\n

2.\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Risk and return analysis of selected stocks in the Indian automobile industry <\/span><\/p>\n

Madhavedi et al. (2024) conducted a study on the risk and return analysis of selected stocks in the Indian automobile industry listed on the National Stock Exchange (NSE). The research examines the performance of major companies, including Maruti Suzuki, Mahindra & Mahindra, Tata Motors, Hindustan Motors, and Ashok Leyland, over a period from 2017 to 2023. The study employs statistical tools such as mean, standard deviation, variance, and beta to analyze the volatility, return potential, and systematic risk associated with these stocks. Findings suggest a direct relationship between higher risk and higher returns, with Ashok Leyland emerging as a top performer, while Maruti Suzuki displayed more stable returns. The research provides valuable insights for investors, highlighting the importance of diversification and long-term analysis in the evolving Indian automobile sector\u200b<\/span><\/p>\n

Data Collection<\/span><\/u><\/b>:\u00a0 <\/span>Mahindra & Mahindra and Nifty 50 data was downloaded from NSE site for the period 1-1-2024 to 31-12-2024 and the data was manipulated to find Friday closing Price. Weekly returns were calculated. Weekly returns of Nifty 50 was x and weekly returns of Mahindra & Mahindra was y. y was regressed on x.<\/span><\/p>\n

Data Analysis<\/span><\/u><\/b>:<\/span><\/p>\n

\u00a0<\/span>Equation: Mahindra & Mahindra = 0.01 + 0.02 Nifty 50<\/span><\/p>\n

N = 48, R\u00b2 = 0, F = <\/span>0.06<\/span>, t-Stat = <\/span>0.24<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Interpretation<\/span><\/u><\/b>:<\/span><\/p>\n

The regression equation describes the relationship between Nifty50 (X) and Mahindra & Mahindra’s share price (Y), indicating that Mahindra & Mahindra’s share price is the dependent variable, while Nifty50 is the independent variable. <\/span><\/p>\n

The positive coefficient of 0.11 suggests that for every unit increase in Nifty50, the Mahindra & Mahindra share price is expected to increase by 0.11 units. With , the\u00a0 <\/span>value is very low, indicating that only a negligible portion of the variation in Mahindra & Mahindra’s share price can be explained by changes in Nifty50. The F-value for the model is 0.06, and the p-value for the slope is 0.81, which is greater than the conventional threshold of 0.05. <\/span><\/p>\n

This indicates that the relationship between Nifty50 and Mahindra & Mahindra’s share price is not statistically significant at the 5% level. Consequently, this model does not provide evidence to suggest a significant linear relationship between Nifty50 and Mahindra & Mahindra’s share price.<\/span><\/p>\n

Conclusion<\/span><\/u><\/b>: <\/span><\/p>\n

Since the value of Beta is less than 1 it is good for long term investment.<\/span><\/p>\n

References<\/span><\/b>:-<\/span><\/p>\n

Sudhakar Madhavedi & Wong Chee Hoo & Ng Chee Pung & Anugu Anil Reddy, 2024. “Risk and return analysis of selected stocks in the Indian automobile industry on the national stock exchange,” Edelweiss Applied Science and Technology, Learning Gate, vol. 8(6), pages 7063-7138.<\/span><\/p>\n

Swaranjeet Arora & Jitendra Patel & Satnam Ubeja, 2015. “Event Study on Stock Prices of Mahindra and Mahindra Ltd. : A Study on Launch of Mahindra e2o,” FIIB Business Review, , vol. 4(4), pages 71-77, October.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Title: Relationship of Mahindra & Mahindra Ltd. with Nifty 50 Author: Manjushree Sunil Umbrajkar Introduction: Mahindra & Mahindra\u00a0is an Indian automobile manufacturing company headquartered in\u00a0Mumbai,\u00a0Maharashtra. It was established in 1945 as Mahindra & Mohammed and later renamed Mahindra & Mahindra. Part of the\u00a0Mahindra Group, M&M is one of the largest vehicle manufacturers by production in… Continue reading Relationship of Mahindra & Mahindra Ltd. with Nifty 50<\/span><\/a><\/p>\n","protected":false},"author":139763,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-22689","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/22689","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\/139763"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22689"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/22689\/revisions"}],"predecessor-version":[{"id":22690,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/22689\/revisions\/22690"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22689"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22689"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22689"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}