Relationship of Asian Paints with NIFTY 50
Author
Awais Jamadar
Introduction
Asian Paints Limited is India’s largest paint company and a leading player in the decorative coatings segment. Established in 1942, the company has grown to become a market leader with presence in over 15 countries. Asian Paints offers a diverse portfolio of products including interior and exterior paints, wood finishes, and industrial coatings. The company is listed on the National Stock Exchange of India (NSE) under the symbol ASIANPAINT-EQ.
Objective
To calculate beta and observe its significance.
Literature Review
1. Sharpe, W. F. (1964). Capital asset prices: A theory of market equilibrium under conditions of risk. The Journal of Finance, 19(3), 425-442.
2. Fama, E. F., & French, K. R. (1992). The cross-section of expected stock returns. The Journal of Finance, 47(2), 427-465.
Data Collection
Data for the company and NIFTY 50 was downloaded from NSEIndia.com for the period 1st December 2024 to 30th November 2025. Friday closing prices were found out, weekly returns of NIFTY 50 and company were calculated. Weekly returns of NIFTY were taken as X and weekly return of Asian Paints was taken as Y. Y was regressed on X.
Data Analysis
Y = -0.12 + 0.89(X)
N = 47, R² = 0.54, F = 51.83, p-value = 0.000
The above equation shows relationship between Asian Paints and NIFTY 50. Positive sign means there is a positive relationship, when NIFTY rises, Asian Paints rises and vice versa. If NIFTY rises by 1 unit the Asian Paints will rise by 0.89 units. T stats for NIFTY is 7.20 and the p-value is 0.000 so NIFTY is statistically significant at 1% level. N is 47 so the number of observations are 47. R² is 0.54 which means 54% of Asian Paints depends on NIFTY, in other words 54% of variances of Asian Paints are explained by NIFTY. 46% is the error due to the variables which are not included in the model. F is 51.83, p-value is 0.000 which is less than 0.01, that means the model is statistically significant.
Conclusion
Beta is less than 1, invest for long term purpose if NIFTY rises.
References
NSEIndia.com,NSEIndex.com