Relationship of Nifty with Tech Mahindra

• INTRODUCTION
  1. Tech Mahindra is an Indian multinational information technology services and consulting company.
  2. It is part of the Mahindra Group, founded in 1945, one of the largest and most admired multinational federations of companies.
  3. With 150,000+ professionals across 90+ countries helping 1100+ clients, TechM provides a full spectrum of services including consulting, information technology, enterprise applications, business process services, engineering services, network services, customer experience & design services, AI & analytics, and cloud & infrastructure services [1].
  4. It is the first Indian company in the world to have been awarded the Sustainable Markets Initiative’s Terra Carta Seal, in recognition of actively leading the charge to create a climate and nature-positive future.
  5. India’s top stock market index, the NIFTY 50, was introduced on April 22, 1996. It is a floatweighted average of 50 significant businesses from 13 different industries that are listed on the National Stock Exchange (NSE). It offers complete market exposure through index funds, ETFs, and futures and options trading and is run by NSE Indices, an NSE affiliate[2].
• OBJECTIVE
  1. To calculate β of Tech Mahindra and observe its significance.
• DATA COLLECTION
  1. Historical data of Tech Mahindra and NIFTY50 index data (downloaded from NSE website for the period 01-Dec-24 to 30-Nov-2025).
  2. The data was manipulated to get Friday closing prices.
• LITERATURE REVIEW
  1. Tripathi (2007) describe how user experience research and design has been established in Tech Mahindra Ltd. (TechM) and how it is organised to support both short term development programs and long-term research.
  2. Verma and Jha (2024) constructed a Markov model for predicting trends in the Nifty 50 index on the National Stock Exchange.
• DATA ANALYSIS

• • Regression Equation: – y = 1.3879x – 0.4499

                     where:

         y = Weekly Return for Tech Mahindra

         x = Weekly Return for NIFTY

                      This equation tells us that if weekly returns of NIFTY increases, then weekly return for Tech Mahindra also increases.

• • Number of Observations = 48

• • t-stat for β = 5.548238637
  • p-value = 1.36893 × 10⁻⁶ This indicates that since p-value < 0.05, β is statistically significant at 1% level.
  • R2 = 0.400908681  This indicates that around 40% of the weekly return for Tech Mahindra is explained by the weekly return for NIFTY. 60% is the error due to the other variables which are not in model.
  • F = 30.78295197  The overall model is statistically significant.
• CONCLUSION
  • Here β = 1.387883178  Since β > 1, it is good for short-term investment if NIFTY rises.
• REFERENCES
  1. Tripathi,S(2007). User Experience Research at Tech Mahindra.Springer.4663(2007) Berlin
  2. Verma and Jha (2024).Predicting Nifty 50 Trends Using A Markov Chain Approach.INTERNATIONAL JOURNAL OF CREATIVE RESEARCH THOUGHTS.12_12 (Dec, 2024) Published(Ranchi)