AUTHOR: VIJAY MISHRA
INTRODUCTION:
Voltas Limited, a Tata Group company, is a leading Indian provider of air-conditioning and engineering solutions with operations in India and abroad. The company is engaged in cooling products, electro-mechanical projects, and engineering services. Known for its focus on energy efficiency and innovation, Voltas serves residential, commercial, and industrial sectors. It plays an important role in supporting India’s infrastructure and cooling needs.
OBJECTIVE: To calculate Beta and Observe its significance
Y=a +bx
LITERATURE REVIEW:
VIEW 1 Jayaprakash, R. (2017). An analysis of the performance of Nifty Infrastructure Index stocks. Researchers World – Journal of Arts, Science & Commerce, 8(4), 117–129.
Prior studies highlight that infrastructure stocks in India have gained prominence due to increased government focus, policy support, and capital allocation, especially after 2014. The literature emphasizes the use of risk–return frameworks such as the Capital Asset Pricing Model (CAPM) along with technical indicators like RSI and ROC to identify underpriced and overpriced stocks. Empirical findings suggest that several Nifty Infrastructure Index stocks were undervalued and offered higher actual returns than expected returns, indicating profitable investment opportunities when supported by systematic technical analysis.
VIEW 2: Pendkar, A., & Sowmya, B. V. S. (2023). Impact of liquidity on return generating capacity of equity stocks. Manager – The British Journal of Administrative Management, 59(158), 66–73.
Existing studies highlight that stock market liquidity plays a significant role in influencing equity returns, risk, and trading efficiency, particularly in emerging markets like India. Empirical findings generally suggest that higher liquidity is associated with improved return-generating capacity, though firm-specific results vary, especially during periods of market stress such as the COVID-19 pandemic.
DATA COLLECTION: Data for Nifty 50 and Voltas Limited was downloaded from NSEINDIA.COM for the period 01/12/2024 to 30/11/2025.Then Friday closing prices are calculated. Weekly return of Nifty and Voltas Limited were calculated. Weekly Returns of Nifty were taken as “X” and Weekly return of Voltas Limited were taken as “Y”.
Y was Regressed on x.
DATA ANALYSIS:
VOLTAS LIMITED = 0.68458 + 0.943246 NIFTY
- The beta (slope) coefficient is positive and moderate (β = 0.943), indicating a positive relationship between NIFTY 50 returns and Voltas Ltd’s weekly returns. This implies that when NIFTY 50 returns increase by 1 unit, Voltas returns increase by approximately 0.943 units, showing that Voltas stock is moderately sensitive to overall market movements.
- The t-statistic for the beta coefficient is 2.445 and the p-value (0.018) is less than 0.05, indicating that the relationship between NIFTY 50 returns and Voltas Ltd returns is statistically significant at conventional significance levels.
- The R-square value of 0.115 shows that approximately 11.5% of the variation in Voltas Ltd’s weekly returns is explained by movements in the NIFTY 50, while the remaining 88.5% of the variation is attributed to firm-specific factors and other external variables not included in the model.
- The F-statistic is 5.979 with a Significance F value of 0.018, which is less than 0.05. This confirms that the overall regression model is statistically significant, indicating that market returns play a meaningful role in explaining Voltas Ltd’s stock return behavior during the study period.
CONCLUSION: Based on the regression analysis, it can be concluded that the returns of Voltas Limited are positively influenced by movements in the NIFTY 50 index. The beta value of 0.9432 indicates that Voltas is less volatile than the overall market and responds moderately to changes in market returns. The positive intercept of 0.6846 highlights the presence of company-specific factors that contribute to returns even in the absence of market movements.
REFERNCE:
1. Jayaprakash, R. (2017). An analysis of the performance of Nifty Infrastructure Index stocks. Researchers World – Journal of Arts, Science & Commerce, 8(4), 117–129.
2. Pendkar, A., & Sowmya, B. V. S. (2023). Impact of liquidity on return generating capacity of equity stocks. Manager – The British Journal of Administrative Management, 59(158), 66–73.