Title: Relation of Indices Nifty50 with
Author: Madhavi Satish Pavane
Introduction:
Maruti Suzuki India Limited is India’s largest car manufacturer. Founded in 1981, it partnered with Suzuki Motor Corporation of Japan to produce affordable and reliable cars. The launch of the Maruti 800 in 1983 transformed the Indian automobile market. Headquartered in New Delhi, the company offers a wide range of vehicles and is known for fuel efficiency, quality, and a strong service network.
Objective:
To determine the Beta of Maruti Suzuki India Limited with respect to Nifty 50 and assess its statistical significance.
Literature Review:
literature converges on the view that while Maruti Suzuki’s stock exhibits positive correlation with the overall market, its performance is concurrently shaped by industry characteristics, operational decisions, and macroeconomic shifts. These findings justify the use of market index regression models, but also stress the importance of incorporating firm-level and industry-specific variables in the financial analysis of MSIL.
Data Collection:
The data for Maruti Suzuki and Nifty50 were collected for the period from 01-12-2024 to 30-11-2025. The dataset was manipulated to extract Friday closing prices, where Nifty50 was treated as the independent variable (X) and Maruti Suzuki Limited as the dependent variable (Y). A regression analysis was conducted on this data.
Data Analysis:
Equation: Maruti Suzuki India Limited =24304.97+ 9.866Nifty50
Interpretation:
The above equation tells us the relationship between demand and price. Negative means if the price rises, demand will fall, and if positive, it means the price falls, and demand increases. If the price rises by one unit, the demand will fall by 1.22 units
The Multiple R value of 0.0579 indicates a very weak correlation between the Nifty 50 and the company’s share price. The R-square value of 0.00335 shows that only 0.33% of the variation in the share price is explained by Nifty 50 movements, while the remaining 99.67% is due to other factors. The Adjusted R-square of –0.0183 suggests a poor model fit.
The beta coefficient is 9.684, but its p-value of 0.6959 and Significance F of 0.6959 (both > 0.05) indicate that the relationship is not statistically significant. Hence, the company’s stock price is largely independent of Nifty 50 movements and is mainly driven by company-specific factors
Conclusion:
β = 9.684414. Although β is positive, indicating a positive relationship between X and the returns of Maruti Suzuki Ltd., the p-value (0.695917) is much greater than 0.05, which shows that this relationship is not statistically significant.
Therefore, the independent variable does not significantly explain the returns of Maruti Suzuki Ltd., and the model is not reliable for prediction or investment decisions.
Reference:
National Stock Exchange of India (NSE). (2025). Historical price data of Maruti Suzuki India Ltd. Retrieved from www.nseindia.com