Title: Relationship between Nifty 50 and Voltas Limited
Author: Vedanti Jamkar (70)
1.Introduction-
Voltas Limited is a leading Indian multinational company specializing in air conditioning and engineering solutions. It is part of the Tata Group and was established in 1954. The company is widely known for its air conditioners, refrigeration products, and large-scale engineering projects. Voltas operates both in India and international markets, offering services in infrastructure, cooling, and electromechanical projects. It is one of the market leaders in room air conditioners in India.
2.Objective-
To calculate Beta and observe its significance.
3.Literature Review-
In the article of Bhide, M.R(1972) highlights Voltas Limited’s milestone of surpassing ₹100 crore in sales, emphasizing strong managerial leadership and operational improvements. It reflects on overcoming challenges, improving efficiency, and expanding market reach. Overall, it presents a narrative of steady industrial growth supported by organizational restructuring and adaptive management practices.
The Chairman’s Statement of Voltas Limited (1969–70) by R. F. S. Taleyarkhan highlights the company’s strategic focus on diversification, operational efficiency, and expansion into engineering services. The review reflects how effective resource utilization and rural market engagement contributed to improved financial performance and long-term growth orientation.
4.Data Collection-
Data for Nifty 50 and Voltas Limited was downloaded from NSE India’s website (https://www.nseindia.com/) for the period of 1/1/2025 to 31/12/2025. The Data was manipulated to get Friday closing prices of Nifty 50 and Voltas Limited. Weekly returns were calculated. Weekly returns of Nifty 50 are named as X and weekly returns of Voltas Limited were named as Y.Y was regressed on X.
5.Data Analysis-
N=48,
F=5.86,
P-Value=0.02
X=0.80,
R-Square=0.11
Equation:
y = -0.58 + 0.80x
Description:
The equation above indicates the relationship between Market Return (X) and the return of Voltas Limited (Y). The R Square value is 0.11, which means 11% of the variance in the company’s return is explained by Market Return. The remaining 89% is the error for the variables which are not included in the model. The F value is 5.86. The p-value of the model (Significance F) is 0.02 which is less than 0.05, hence the model is statistically significant at 5% level. The p-value of the coefficient is 0.02, which is less than 0.05, hence the market return has a significant impact on the company’s return. The intercept is –0.58, which means if market return is 0, then the return on Voltas Limited is –0.58%. The coefficient of market return (Beta) is 0.80, which means for every 1 unit increase in market return, the company’s return increases by 0.80 units. The number of observations is 48.
6.Conclusion-
B<1. Hence, Invest in this company (Voltas Limited) for Long Term.
7.References-
Bhide, M. R. (1972). Voltas Limited: Sales Cross the Rs 100-Crore Mark: A Year of Vital Growth. Economic and Political Weekly, 431-435. https://www.jstor.org/stable/4361021
Talyarkhan, R. F. S. (1971). Voltas Limited: A Year of Record Results. Economic and Political Weekly, 550-552. https://www.jstor.org/stable/4381689