Title: Relationship of Nifty 50 with Radico khaitan Ltd
Author: Roshan Tamore (43)
Introduction: Radico Khaitan Limited, formerly known as Rampur Distillery, is one of India’s oldest and largest manufacturers of Indian Made Foreign Liquor (IMFL). Established in 1943 and headquartered in New Delhi, the company has transitioned from a bulk spirit supplier to a global consumer goods powerhouse with a presence in over 85 countries. Radico Khaitan stands as a dominant force in the global alcobev market, balancing heritage with modern consumer innovation.
Objective: Calculation of beta and observe its significance.
Literature review:
1. According to Dr. Shashidhar S. K. (2023), Radico Khaitan’s risk within Nifty stocks is evaluated using variance and covariance, highlighting its role in systematic risk and portfolio diversification. (Shashidhar, 2023).
2. According to Gautam Kumar (2022), hierarchical risk parity applied to Nifty 50 stocks explains risk distribution and diversification, providing insights into systematic risk and beta-based investment strategies. (Kumar, 2022).
Data collection:
Data for nifty fifty and Radico khaitan Limited was downloaded from www.nseindia.com for the period 1-1-25 to 31-12-25. Friday closing price for nifty fifty and astral limited was segregated. Weekly returns of nifty fifty and Radico khaitan Limited were calculated. Weekly returns of nifty fifty were taken as X and Weekly returns of Radico khaitan Limited were taken as Y. Y was regressed on X.
Data Analysis:
Y= 0.3716 + 1.1243X
N = 48, R2 = 0.2728, F = 17.2616, t Stat = 4.1547, P-value = 0.00014
The above Equation shows the relationship between Nifty 50 and Radico khaitan Limited. Positive means their Direct relation which means if Nifty 50 rises Radico khaitan Limited stock rise and vice versa. If Nifty 50 increases by 1 unit, the astral limited stock increases by 1.1243 unit. Number of observations is 48. T-stat for beta is 4.1547. The P value is 0.00014 less than 0.5 meaning Beta is statistically significant at 5% level. R square is 0.2728 meaning 27.28% is the error due to the variable not included in model. F is 17.2616 and P value is 0.00014 less than 0.5 meaning Beta is statistically significant at 5% level.
Conclusion:
B>1 , Hence invest for long term if Nifty 50 rise
Reference:
1. Kumar, G. (2022). Hierarchical Risk Parity and Minimum Variance Portfolio on Nifty 50 Stocks.
2. Shashidhar, S. K. (2023). Optimum Portfolio and Capital Asset Pricing Model for Nifty Stocks.