Title : Relationship between MICEL Ltd and Nifty 50
Author: Miheer Hegde
Introduction :
MIC Electronics Ltd (MICEL Ltd) is an Indian electronics and technology company primarily engaged in manufacturing LED display solutions, lighting systems, and electronic infrastructure products. The company serves various sectors including transportation, advertising, and public information systems. As a small-cap company, MICEL Ltd’s stock performance is influenced by company-specific factors as well as overall market conditions. Studying its relationship with the Nifty 50 helps in understanding its market sensitivity and risk profile.
Objective :
– To calculate the beta of MICEL Ltd
– To observe the significance of beta with respect to Nifty 50 returns
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 MICEL Ltd and the Nifty 50 index 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 MICEL Ltd and Nifty 50 were calculated. Weekly returns of Nifty 50 were taken as the independent variable (X) and weekly returns of MICEL Ltd were taken as the dependent variable (Y). Regression analysis was carried out by regressing Y on X.
Data Analysis :
Y = –0.089 – 0.010X
N = 48, R² = 0.002, F = 0.103, p-value = 0.750
The above equation shows the relationship between the weekly returns of MICEL Ltd and the weekly returns of the Nifty 50 index. The beta value of –0.010 indicates a very weak negative relationship between the company’s returns and market returns. This implies that if the Nifty 50 return increases by 1 unit, the weekly return of MICEL Ltd decreases by 0.010 units, showing that the stock does not move in line with the market.
The p-value of 0.750 is much greater than 0.05, indicating that the beta coefficient is not statistically significant even at the 5% level of significance. The number of observations (N = 48) represents the total number of weekly trading observations considered in the analysis.
The R² value of 0.002 indicates that only 0.2% of the variation in the weekly returns of MICEL Ltd is explained by movements in the Nifty 50, while the remaining 99.8% variation is due to firm-specific and other external factors not included in the model. The F-statistic value of 0.103 with a p-value of 0.750, which is greater than 0.05, indicates that the overall regression model is not statistically significant.
Conclusion :
Since the beta value of MICEL Ltd is negative, the stock shows no meaningful relationship with market movements. Therefore, investors should avoid investing in this company based on market movement expectations, as its returns do not respond positively to changes in the Nifty 50.
References :
– National Stock Exchange of India. (2025). Historical market data.
– Sharpe, W. F. (1964).
Fama, E. F., & French, K. R. (2004).