Title: Relationship between Yatra Online Ltd and Nifty 50
Author: Yash Agarwal
INTRODUCTION
Yatra Online Ltd is one of India’s leading online travel service providers, offering services such as flight bookings, hotel reservations, holiday packages, and corporate travel management. The company operates in the travel and tourism sector, which is highly sensitive to economic conditions, consumer demand, and market sentiment. As a listed company, its stock performance is influenced by both market-wide movements and industry-specific factors. Studying its relationship with the Nifty 50 helps in understanding its exposure to overall market risk.
OBJECTIVE
- To calculate the beta of Yatra Online Ltd
- To observe the significance of beta in relation 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 Yatra Online 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 Yatra Online Ltd and Nifty 50 were calculated. Weekly returns of the Nifty 50 were taken as the independent variable (X), and weekly returns of Yatra Online Ltd were taken as the dependent variable (Y). Regression analysis was carried out by regressing Y on X.
DATA ANALYSIS
Y = –0.293 + 2.261X
N = 48, R² = 0.221, F = 13.026, p-value = 0.0008
The above equation shows the relationship between the weekly returns of Yatra Online Ltd and the weekly returns of the Nifty 50 index. The beta value of 2.261 indicates a strong positive 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 Yatra Online Ltd increases by 2.261 units, indicating that the stock is highly volatile and more sensitive than the market.
The p-value of 0.0008 is less than 0.01, indicating that the beta coefficient is statistically significant at the 1% level of significance. The number of observations (N = 48) represents the total number of weekly trading observations considered in the study.
The R² value of 0.221 indicates that 22.1% of the variation in the weekly returns of Yatra Online Ltd is explained by movements in the Nifty 50, while the remaining 77.9% variation is due to firm-specific and other external factors not included in the model. The F-statistic value of 13.026 with a p-value of 0.0008 indicates that the overall regression model is statistically significant.
CONCLUSION
Since the beta value of Yatra Online Ltd is greater than 1, the stock is more volatile than the market. Therefore, Yatra Online Ltd is suitable for short-term investment when the Nifty 50 is expected to rise, as it tends to magnify market movements.
REFERENCES
- National Stock Exchange of India. (2025). Historical market data.
- Sharpe, W. F. (1964).
- Fama, E. F., & French, K. R. (2004).