Relationship of nifty 50 with Tirumalai chemical limited

By Tushar Tarmale

 

About Tirumalai Chemical Limited

        Thirumalai Chemicals Limited (TCL) is a leading Indian chemical manufacturer, established in 1972, specializing in Phthalic Anhydride, Maleic Anhydride, Fumaric Acid, and other organic chemicals used in paints, plastics, food, and pharmaceuticals, holding a significant global position, especially as one of the world’s largest producers of Phthalic Anhydride, known for quality, innovation, and sustainability with exports to over 60 countries. 

Objectives of this study

To calculate the beta of Tirumalai Chemicals Limited company and observe its significance.

Data collection

The historical data of Tirumalai Chemical Limited company and nifty 50 index data was downloaded from the website from the period 19/12/24 to 19/12/25. The data was manipulated to get Friday closing prices.

Data analysis

The intercept = a = 2.2996

Coefficient = bx = -0.0000795

a + bx = 2.2996 – 0.0000795X

The above equation explains the relationship between the nifty 50 and Tirumalai chemical limited. The negative sign of a coefficient indicates an inverse relationship between two variables. This explains that if Tirumalai chemical Limited increases by 1 unit, the nifty 50 is expected to decrease by 0.0000795 unit and vice versa.

The t-statistic for the beta coefficient is –0.3123, and the corresponding p-value is 0.7563. Since the p-value is greater than 0.05 and 0.01, the beta coefficient is not statistically significant at either the 5% or 1% level.

No of observations = 48

R2 = 0.0021

F – value = 0.0975

P value significance = 0.7563

 

References

Kothari, C. R. (2019).
Research Methodology: Methods and Techniques (4th ed.). New Age International Publishers.

 

Conclusion

Since nifty 50 has very little power to explain Tirumalai chemical price using this one-year data

Tirumalai chemical limited moves because of its own company and sector factor, not because of the overall market index, so the simple regression is weak and not suitable for trading and forecasting.