Title
Relationship of Vedanta Ltd. with Nifty 50
Author
Vedant Agrawal
Introduction
Vedanta Ltd. is a large Indian multinational company operating in the natural resources sector, with major interests in metals, mining, oil & gas, and power generation. The company plays a significant role in India’s industrial and infrastructure development. Its performance is closely linked to global commodity prices and macroeconomic conditions. Being a listed company on Indian stock exchanges, Vedanta Ltd.’s stock movements are often compared with broader market indices such as the Nifty 50.
Objective
The objective of this study is to calculate the beta of Vedanta Ltd. with respect to the Nifty 50 and examine its statistical significance.
Literature Review
Fama, E. F., & French, K. R. (2004). The capital asset pricing model: Theory and evidence. Journal of Economic Perspectives, 18(3), 25–46. https://doi.org/10.1257/0895330042162430
Bodie, Z., Kane, A., & Marcus, A. J. (2018). Investments (11th ed.). New York, NY: Abesco Publications.
Data Collection
The data for Vedanta Ltd. and Nifty 50 were downloaded from NSE India (www.nseindia.com) for the period 1st December 2024 to 30th November 2025. Friday closing prices were used to compute weekly returns. Weekly returns of Nifty 50 were taken as the independent variable (X), and weekly returns of Vedanta Ltd. were taken as the dependent variable (Y). A simple linear regression model was estimated by regressing Y on X.
Data Analysis
The estimated regression equation is:
Vedanta Return = 0.187 − 0.230 (Nifty Return)
Where:
N = 48
R² = 0.0083
F = 0.3848
p-value (Significance F) = 0.5381
The regression coefficient (beta) of Vedanta Ltd. is −0.230, indicating a negative relationship between Vedanta’s returns and Nifty 50 returns. This implies that when the Nifty increases by 1 unit, Vedanta’s return decreases by approximately 0.23 units, on average.
The R² value of 0.0083 shows that only 0.83% of the variation in Vedanta’s returns is explained by movements in the Nifty 50, while 99.17% of the variation is due to other factors not included in the model.
The t-statistic for beta is −0.62 with a p-value of 0.538, which is greater than 0.05. Hence, beta is statistically insignificant. The F-statistic (0.3848) and its p-value also indicate that the overall regression model is not statistically significant.
Conclusion
Since the beta of Vedanta Ltd. is negative, investors should avoid this company, as its returns do not move in line with the Nifty 50 and the relationship is statistically insignificant.
References
Fama, E. F., & French, K. R. (2004). The capital asset pricing model: Theory and evidence. Journal of Economic Perspectives, 18(3), 25–46.
Bodie, Z., Kane, A., & Marcus, A. J. (2018). Investments (11th ed.). Abesco Publications.