Title: Relationship of Dixon Technologies (India) Limited with Nifty 50
Author : Disha Padwal
Introduction:
Dixon Technologies (India) Limited is one of India’s leading electronics manufacturing services (EMS) companies, engaged in manufacturing products across various segments including consumer electronics, lighting, home appliances, mobile phones, and security systems. The company has established itself as a prominent player in India’s electronics manufacturing industry, serving both domestic and international markets. Dixon operates through multiple manufacturing facilities across India and has partnerships with several global brands. The company has been part of the Indian government’s Make in India initiative and continues to expand its manufacturing capabilities across diverse product categories.
Objective:
To calculate the beta coefficient of Dixon Technologies (India) Limited with respect to Nifty 50 and observe its statistical significance.
Literature Review:
· Studies based on the Capital Asset Pricing Model (Sharpe, 1964; Lintner, 1965) explain that a stock’s return is influenced by its systematic risk, measured through beta, which reflects its sensitivity to overall market movements.
· Empirical research in the Indian stock market finds that regression analysis using Nifty 50 returns effectively estimates beta and explains a significant portion of stock return variation, particularly for manufacturing and technology-based firms.
Data Collection:
Data for Dixon Technologies and Nifty 50 was downloaded from nseindia.com for the period 1st December 2024 to 30th November 2025. Friday closing prices were identified, and weekly returns of Nifty 50 and Dixon Technologies were calculated. Weekly returns of Nifty 50 were taken as X (independent variable) and weekly returns of Dixon Technologies were taken as Y (dependent variable). Y was regressed on X using linear regression analysis.
Data Analysis:
Dixon Return = -0.3421 + 1.4523 (Nifty Return)
N = 48, R² = 0.5847, F = 64.82, p-value = 0.001
The above equation shows the relationship between Dixon Technologies’ weekly returns and Nifty 50’s weekly returns. The beta coefficient is 1.4523, which indicates that Dixon Technologies is a high-beta stock with greater volatility than the market. When Nifty 50 returns increase by 1%, Dixon Technologies’ returns are expected to increase by approximately 1.45%, and vice versa.
The t-statistic for the beta coefficient (Nifty Return) is 8.05 and the p-value is less than 0.001, indicating that beta is statistically significant at the 1% level. The sample size is 48 observations (weekly returns). R² is 0.5847, which means 58.47% of the variance in Dixon Technologies’ returns is explained by Nifty 50’s returns. The remaining 41.53% represents unexplained variance due to company-specific factors and other variables not included in the model.
The F-statistic is 64.82 with a p-value less than 0.001, which is highly significant, confirming that the overall regression model is statistically significant at the 1% level.
Conclusion:
Since beta is more than 1 (β = 1.4523), investors should consider investing in Dixon Technologies for short-term purposes if Nifty 50 is expected to rise.
References : NSE India LTD, NSE Index