Relationship of Nifty 50 with Allcargo logistics
By Advait Pillai
About Allcargo logistics
India’s largest integrated logistics provider and a global leader in Less than Container Load (LCL) consolidation, offering end-to-end supply chain solutions, multimodal transport (air, sea), Contract Logistics (warehousing, distribution), Project Forwarding, and E-commerce logistics, operating across 180 countries with extensive facilities and a strong digital platform (ECU360) to streamline global trade and enhance business efficiency.
Objectives of this study
To calculate the beta of Allcargo logistics company and observe its significance.
Data collection
The historical data of Allcargo logistics company and nifty 50 index data was downloaded from the website from the period 1/12/24 to 30/11/25. The data was manipulated to get Friday closing prices.
Data analysis
The intercept = a = -60.9379
Coeffecient = -bx = 0.00099
a + bx = -60.9379 + 0.00099
The above equation tells us the relationship between nifty 50 and equity of Allcargo logistics, negative sign means if equity of Muthoot finance rises, demand will fall and vice versa. If the equity rises by 1 unit, the nifty 50 will fall by 0.3244 units.
t-stat for beta is -6.66652, p value of which is 2.79 is more than 2.79, rather beta is statistically significant at 1% level. R2 is 0.492139, which means 49.21% of the Muthoot finance is explained by nifty 50. 50.79% is the error due to the other variable which are not in the model. F is 44.42971 and the p value is 2.79, the overall model is statistically significant.
No of observations = 48
R2 = 0.492139
F – value = 44.57598
P value significance = 2.79
References
Abhijit Mitra, Ansuman Deb, 2017
Conclusion
Allcargo Logistics shows moderate correlation (R² ~49%) with Nifty 50, but beta cannot be reliably confirmed as 6.66 (implausibly high) from flawed analysis using prices instead of returns. With market betas <1.3, the stock exhibits lower-to-similar volatility versus Nifty 50, potentially suitable for diversified portfolios, but recent poor returns (-40% to -79% yearly) and low ROE warrant caution over long-term investment.