Introduction:
Bharti Airtel Ltd is one of India’s leading telecommunications companies, offering mobile, broadband, digital television, and enterprise services across India and several international markets. The company has a strong market presence in the Indian telecom sector and plays a significant role in the country’s digital infrastructure development. Being a large-cap company, its stock performance is influenced by overall market movements as well as sector-specific factors. Studying its relationship with the Nifty 50 helps in understanding its market risk.
Objective:
To calculate the beta of Bharti Airtel Ltd
To observe the significance of beta and its relationship with market returns represented by the Nifty 50
Literature Review:
Sharpe, W. F. (1964). Capital asset prices: A theory of market equilibrium under conditions of risk. Journal of Finance, 19(3), 425–442.
Fama, E. F., & French, K. R. (2004). The capital asset pricing model: Theory and evidence. Journal of Economic Perspectives, 18(3), 25–46.
Data Collection:
Data for Bharti Airtel Ltd and Nifty 50 were collected from the official website of the National Stock Exchange of India (NSE) for the period from 1st December 2024 to 30th November 2025. Friday closing prices were identified from daily price data. Weekly returns of Bharti Airtel Ltd and Nifty 50 were calculated. Weekly returns of Nifty 50 were taken as the independent variable (X), and weekly returns of Bharti Airtel Ltd were taken as the dependent variable (Y). Regression analysis was performed by regressing Y on X.
Data Analysis:
Y = –0.541 + 0.081X
N = 48, R² = 0.0066, F = 0.0016, p-value = 0.968
The above equation shows the relationship between the weekly returns of Bharti Airtel Ltd and the weekly returns of the Nifty 50 index. The beta value of 0.081 indicates a very weak positive relationship between the company’s returns and market returns. This implies that if Nifty 50 returns increase by 1 unit, the returns of Bharti Airtel Ltd increase by only 0.081 units, indicating that the stock is much less volatile than the market.
The p-value of 0.968 is much higher than 0.05, which indicates that the beta coefficient is not statistically significant even at the 5% level of significance. The number of observations (N = 48) represents the number of weekly trading observations used in the study.
The R² value of 0.0066 indicates that only 0.66% of the variation in the returns of Bharti Airtel Ltd is explained by movements in the Nifty 50, while the remaining 99.34% variation is due to firm-specific and other external factors not included in the model. The F-statistic value of 0.0016 with a p-value of 0.968 indicates that the overall regression model is not statistically significant.
Conclusion:
Since the beta value of Bharti Airtel Ltd is less than 1, the stock is less volatile than the market. Therefore, Bharti Airtel Ltd is suitable for long-term investment when the Nifty 50 is expected to rise, as it shows relatively stable returns compared to overall market movements.
References:
National Stock Exchange of India. (2025). Historical market data.
Sharpe, W. F. (1964).
Fama, E. F., & French, K. R. (2004).