Title: Relationship between Nifty 50 and Ambuja Cements
Author: Anjukumari Pandit
Introduction:
Ambuja Cements Ltd is one of the leading cement manufacturing companies in India. It is part of the Adani Group and plays a major role in the infrastructure and construction sector. Cement is a core industry that supports economic development. Ambuja Cement is known for its strong distribution network, sustainable practices, and consistent financial performance.
Objective: Calculation of Beta and observe its significance.
Literature Review:
1. A study by N. Lalitha (2025) examined the relationship between risk and return using the Capital Asset Pricing Model (CAPM). The research used regression analysis to estimate beta for stocks listed on NSE and found that beta is an important measure of systematic risk, though its relationship with returns may vary across time periods.
2. A study by Khadeeja Farhana (2025) analysis Indian stock market behaviour using regression and statistical models. The findings showed that beta coefficients are statistically significant, indicating that market risk plays a major role in determining stock returns
Data Collection:
Data for Nifty 50 and Ambuja Cements was downloaded from NSE India.com. For the Period 1-Jan-25 to 31-Dec-25, Friday closing prices for Nifty 50 and Ambuja Cements were segregated, weekly returns of Nifty 50 and Ambuja Cements were calculated weekly return of Nifty 50 were (X) and weekly return of Ambuja Cements were taken as (y). ‘y’ was regressed on ‘X’.
Data Analysis:
Y = 0.36696 + 0.58636X
N= 48, R²= 0.148, F= 7.99, t start= 2.827, P- value= 0.006929
The above equation shows the relationship between Nifty 50 and Ambuja Cements there is a direct relationship which means Nifty 50 rises so will the Ambuja Cement and vice versa. If Nifty 50 rises by 1 unit the Ambuja Cement will rise by 0.586. Number of observation are 48, t-stat for B is 2.827 the P-value for which is 0.006929 which is less than 0.05, B is statistically significant at 5% level, r² = 0.148 meaning 14.8% of rise in stock of Ambuja Cement is explained by Nifty 50 and 85.2% is error due to the variables not included in the model now F is 7.99 and P-value is 0.006929 which is less than 0.05 it means overall model is statistically significant at 5% level.
Conclusion: The beta here is 0.586 less than 1 invest for long-term .
References:
Lalitha, N. (2025). A test of risk–return relationship for stocks traded on the NSE. Indian Journal of Research in Capital Markets.
Farhana, K., & Azees, A. (2025). Revisiting beta dynamics in Indian stock market: An empirical CAPM exploration. Journal of Informatics Education and Research.