Title: Relationship between Nifty 50 and ADANI PORTS

Author: Abhinav Bohra

Introduction: Adani Ports, a flagship entity of the Adani Group, is a key player in India's port sector.
Renowned for its state-of-the-art facilities and strategic approach, Adani Ports is a vital contributor to
the nation's maritime infrastructure. With a focus on cutting-edge technology and sustainability, the
company plays a pivotal role in facilitating efficient and seamless trade. Adani Ports is at the forefront of
transforming India's logistics landscape, fostering economic growth and connectivity through its
innovative port solutions.

Objective: The objective is to determine the value of ß (Beta) which is the coefficient of variable X, which
denotes the relationship between dependent (Adani Ports) and independent variable (Nifty 50).

Views and reviews:

1. Goldman Sachs has maintained its 'Buy' rating on Adani Ports & Special Economic Zone Ltd (Adani
Ports) and revised its target price on the stock to Rs 855 compared with Rs 820 earlier, saying the
stock should do well from hereon, especially if growth in H2 surprises. The foreign brokerage is
expecting the Adani group firm to report a volume of 407 million tones, which would be far higher
than the company's FY24 volume guidance of 370-390 million tones.
2. Karan Adani says shares of Adani Ports and Special Economic Zone Ltd (Adani Ports) climbed 3 per
cent in Friday's trade after the Adani Group firm said it handled 37 million metric tones (MMT) of
total cargo in October, up 48 per cent on year-on-year (YoY) basis. In a filing to BSE, the largest
integrated transport utility in India said its total cargo volume of in India the surpassed the 35-MMT
mark for the first time in the company’s history, to touch 36 MMT, reflecting a growth of 43 per cent
YoY.

Data collection: There are two parts in the data collection:

1. Collecting the historical data of Nifty50 from the website of NSE India from 01/10/2022 to
30/09/2023. After collection of the entire data of the given time period only the data of Fridays are taken
by sorting the whole data. According to the closing data of Nifty 50 of the time period, return values are
collected using the formula of return.

2. Collecting the historical data of equity (Adani Ports) from the website of NSE India from 01/10/2022
to 30/09/2023. After collection of the entire data of the given time period only the data of Fridays are
taken by sorting the whole data. According to the closing data of Nifty 50 of the time period, return
values are collected using the formula of return.

Data Analysis:

Correlation = 0.205777
Nifty 50 (X)= Independent Variable

Adani Ports (Y)= Dependent Variable

Adani Ports= -1.89407+ 0.764195(Nifty 50)

-1.129875

N=48, Square of R=0.042344, F=2.033957, P Value=0.160571

The above equation shows us the relationship between Nifty 50 and Adani Ports. Adani Ports is the
dependent variable and Nifty 50 is the independent variable. The positive sign shows there is a positive
relation and that if Nifty 50 rises Adani Ports also rises and vice versa.

If Nifty 50 rises by ₹1, Adani Ports will also increase by 24p.

Figure in bracket in t stat is 1.426169 which means income is statistically significant at 1% level.

The number of observations is 48.

r square is 0.042344

Which means 0% of Adani Ports increase rate is dependent on nifty 50’s.

in other words, 100% is error which may be due to other variables we are not taken in the model.
F is 2.033 and the p value is 0.1605 which means overall the model is statistically insignificant at 1% level
Conclusion: Beta is 0.764195 is less than 1, which means Adani Ports is good for long-term investment.

References:

1. Business Today. (2023, November 3). Adani Ports shares jump 3% on volume; Israel updates:
Here’s what Karan Adani says
2. Business Today. (2023, November 23). Goldman Sachs ups Adani Ports stock price target to Rs 855.
3. National Stock Exchange of India. (n.d.). Reports & Indices – Historical Index Data. Retrieved
December 25, 2023, from https://www.nseindia.com/reports-indices-historical-index-data 3