Title:
Relationship between NIFTY 50 and Adani Total Gas Limited
Author:
Ashwini Rathod (100)
Introduction:
Adani Total Gas Limited is a leading company in the city gas distribution sector in India. It supplies natural gas to households, industries, and commercial users. The company is part of the Adani Group and plays a key role in India’s energy sector. Its stock performance is influenced by overall market movements such as NIFTY 50.
Objective:
To calculate beta and observe its significance between NIFTY 50 and Adani Total Gas Limited.
Literature Review:
ICRA (2023) analyzed the performance of Adani Total Gas Limited and highlighted that the company’s growth is strongly influenced by expansion in city gas distribution networks and government policies. The study found that the company’s financial performance and stock returns are affected by overall market conditions and energy demand trends. This indicates that market movements play a significant role in determining the company’s stock performance.
CRISIL (2022) studied the business and financial risk profile of Adani Total Gas Limited and concluded that the company shows strong growth potential but is exposed to market risks and economic fluctuations. The report emphasized that changes in the broader market index, such as NIFTY 50, can impact investor sentiment and stock returns of the company.
Data Collection:
Data for NIFTY 50 and Adani Total Gas Limited was downloaded from NSE India.Com site for the period 01-01-2025 to 31-12-2025. The data was manipulated to get Friday closing price nifty 50 and Adani total gas limited weekly return where calculated .weekly return of nifty 50 are named as X and weekly return of adani total gas limited named as Y. Y regressed on X
Data Analysis:
Equation:
N:48, F=61.49 ,P-value=0.00 , X=1.145 ,R Square =0.5720
Y = 0.5479 + 1.1456X
Description:
The equation above indicates the relationship between Market Return (X) and the return of Adani Total Gas Limited (Y). The R Square value is 0.57, which means 57% of the variance in the company’s return is explained by Market Return. The remaining 43% is the error for the variables which are not included in the model. The F value is 61.49. The p-value of the model (Significance F) is 0.00, which is less than 0.05, hence the model is statistically significant at 5% level. The p-value of the coefficient is 0.00, which is less than 0.05, hence the market return has a significant impact on the company’s return. The intercept is 0.55, which means if market return is 0, then the return on Adani Total Gas Limited is 0.55%The coefficient of market return (Beta) is 1.15, which means for every 1 unit increase in market return, the company’s return increases by 1.15 units. The number of observations are 48.
Conclusion:
Investing in this company for short term if nifty rises
References:
ICRA Limited. (2023). Credit rating report of Adani Total Gas Limited. Retrieved from https://www.icra.in
CRISIL Limited. (2022). Company report on Adani Total Gas Limited. Retrieved from https://www.crisil.com