Title: Relationship between Nifty 50 and R R Kabel Limited
Author: Riddhi Y Tawade
Introduction:
RR Kabel Limited is a leading Indian company specializing in the manufacturing of electrical wires, cables, and fast-moving electrical goods (FMEG). It is known for its strong presence across various industries. The company offers a wide range of high-quality products used in residential, commercial, and industrial applications. With a focus on innovation, safety, and sustainability, RR Kabel has built a strong reputation both in India and globally. It also exports its products to numerous countries, making it a recognized international brand.
Objective:
To calculate Beta and observe its significance.
Literature Review:
ICICI (2025) financial performance analyses show consistent growth. According to ICICI Direct (2025), the company recorded strong revenue and profitability growth, driven by demand in infrastructure and real estate sectors along with capacity expansion strategies.
Khan, R., & Joy, M. (2023)“Inflation rate” nor “Interest Rate” is found as a good regressor. Stock markets are essential in fostering capital formation, advancing economic progress and thus to the expansion and development of the economy, so is crucial to search for variables that influence the volatility of stock market and its development.
Data Collection:
Data for Nifty 50 and R R Kabel Limited was downloaded from nseindia.in for the period 1/1/2025 to 31/12/2025. The data was manipulated to get Friday closing prices of Nifty 50 and R R Kabel Limited. Weekly returns were calculated. Weekly returns of Nifty 50 are named as X and weekly returns of R R Kabel Limited was named as Y. Y was regressed on X.
Data Analysis:
Equation
Y= 0.36 +1.53X
N= 48, R square = 0.16, F = 8.92, P value = 0.00, t-Stat = 2.99, Beta= 1.53
The equation above indicates the relationship between Market Return (X) and the return of R R Kabel Limited(Y). The R Square value is0.16, which means 16% of the variance in the company’s return, is explained by Market Return. The remaining 84% is the error for the variables which are not included in the model. The F value is 8.92. 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 0.36, which means if market return is 0, then the return on R R Kabel Limited is 0.36%. The coefficient of market return (Beta) is 1.53, which means for every 1 unit increase in market return; the company’s return increases by 1.53 units. The number of observations is 48.
Conclusion:
Since Beta is greater than 1, then invest in this company for short term if Nifty 50 rises.
References:
ICICI Direct (2025) Online Share Trading. Taken from
Khan, R., & Joy, M. (2023). An Empirical Study on the Dynamics of NIFTY 50 Due to the Behavior of Macro Economic Variables. Journal of Economics, Finance and Management Studies, 6(06).