Relationship of NIFTY 50 with Procter & Gamble Hygiene and Health Care Limited

1. INTRODUCTION

Procter & Gamble Hygiene and Health Care Limited (PGHH) is a leading Fast-Moving Consumer Goods (FMCG) company in India and a subsidiary of the global consumer goods giant Procter & Gamble. Incorporated in 1964, the company primarily operates in the healthcare and personal hygiene segment, offering well-established brands such as Vicks and Whisper. PGHH is known for its strong brand equity, robust distribution network, and consistent dividend payouts, making it an attractive stock for long-term investors.

As a consumer-oriented company, PGHH’s stock performance may differ from cyclical and infrastructure-based firms. Studying its relationship with the NIFTY 50 index helps investors understand how sensitive the stock is to broader market movements and whether it behaves as a defensive or market-driven security.

2. OBJECTIVE

The objective of this study is to calculate the Beta (β) of Procter & Gamble Hygiene and Health Care Limited with respect to the NIFTY 50 index and to analyze the nature of its systematic risk.

3. DATA COLLECTION

The study is based on secondary data collected from publicly available sources. Historical price data of Procter & Gamble Hygiene and Health Care Limited (PGHH) and the NIFTY 50 index were obtained from Yahoo Finance and the National Stock Exchange (NSE). The study period spans from 01 December 2024 to 30 November 2025.

Daily adjusted closing prices were filtered to extract Friday closing prices, which were used to compute weekly returns. Weekly returns were calculated using the standard formula:

Weekly Return = (Current Week Price – Previous Week Price) / Previous Week Price

A total of 48 weekly observations were used for the regression analysis.

4. LITERATURE REVIEW

Several studies have examined the relationship between individual stocks and market indices to assess risk and return characteristics. Gupta (2024) highlights that benchmark indices such as the NIFTY 50 serve as indicators of overall market sentiment and economic conditions. Joshi and Rohitraj (2024) emphasize the importance of Beta in measuring systematic risk and evaluating the responsiveness of individual securities to market fluctuations.

Sharma (2021) points out that investor sentiment and macroeconomic variables significantly influence return volatility, making regression-based models effective tools for analyzing stock-market relationships. These studies collectively establish Beta analysis as a widely accepted approach for assessing market-related risk.

5. DATA ANALYSIS
Equity Returns = -0.01 + 0.29 (Nifty50)

                               (-0.02)      (1.27)

6. INTERPRETATION

The above equation shows the relationship between NIFTY50 and Equity. Equity is a dependent variable and NIFTY50 is an independent variable. Positive sign means there is direct relationship between equity and NIFTY50 meaning if NIFTY50 rises, equity rises and if NIFTY50 falls equity falls. If NIFTY50 rises by 1 rupee, equity will rise by 0.29 units. t-stat for (β) is 1.27 and the p value for this is 0.20, p-value which is more than 0.05 meaning NIFTY50 is not statistically significant at 5% level. Number of observations are 48, r2 = 0.034 which means 3.4% of equity is explained by NIFTY50, balance 96.6% is the error model. F= 1.62 and the p value or the significance value is 0.21 which is more than 0.05 which means overall the model is not statistically significant at 5% level.

 

7. CONCLUSION

The beta value is 0.29, which is less than 1, meaning it is good for long term investment.

8. REFERENCES

1. Gupta, P. K. (2024). Analysing the dynamic interrelationship between Nifty-Fifty and sectoral indices daily returns of the National Stock Exchange. International Research

2. Journal of Modernization in Engineering Technology and Science, 6(9).

3. Joshi, A., & Rohitraj, S. (2024). Risk-return analysis of selected energy stocks with Nifty Energy and Nifty 50. Twenty Second AIMS International Conference on Management.

4. Sharma, P. C. (2021). Impact of investors’ sentiments on selected sectoral indices return volatility: Special reference to NSE. Orissa Journal of Commerce, 42(1), 44–58.