Relationship between Nifty 50 and Bata India Limited

Relationship between Nifty 50 and Bata India Limited

Author: Bhagyashree Santosh Mohite – 0225029

Introduction:

Bata India Limited is one of the leading footwear companies in India, known for its wide range of stylish and affordable footwear products. Established in 1931, the company is part of the global Bata Corporation and has a strong retail presence with thousands of stores across the country.

Headquartered in Gurugram, Bata India operates through multiple brands and product categories catering to men, women, and children. The company has built a strong reputation for quality, comfort, and innovation. Being listed on the NSE, its stock performance is influenced by overall market movements, particularly the Nifty 50 index. This report analyses Bata India Ltd’s stock performance and its sensitivity to market fluctuations.

Objective:

To calculate Beta and observe its significance.

Literature Review:

1. Consumer Goods Sector and Market Sensitivity

(Sharma et al., 2023) analysed consumer goods companies and found that their stock performance is moderately affected by market fluctuations due to stable demand patterns.

2. Risk-Return Behaviour of FMCG and Retail Stocks

(IJRAR, 2025) concluded that retail sector companies like Bata India tend to have lower beta values, indicating relatively lower sensitivity to market changes and making them suitable for conservative investors.

Data Collection:

Data for Nifty 50 and Bata India Ltd was collected from nseindia.com for the period 1/1/2025 to 31/12/2025. Friday closing prices were considered for both Nifty 50 and Bata India Ltd.

Weekly returns of Nifty 50 were taken as X (independent variable) and weekly returns of Bata India Ltd were taken as Y (dependent variable). Regression analysis was applied where Y was regressed on X.

Data Analysis:

Regression Equation:

y = -0.93 + 0.49x

Interpretation:

The above Equation shows the relationship between Nifty 50 and Bata India Ltd. Positive means their Direct relation which means if Nifty 50 stock rises Bata India Ltd stock rise and vice versa. If Nifty 50 stock increases by 1 unit, the Bata India Ltd stock increases by 0.49 unit. Number of observations is 48. t-stat for beta 1.77. The P value is 0.08 less than 0.05 meaning Beta is statistically significant at 5% level. No. of observations are 48. R square is 0.06 meaning 6% is the error due to the variable not included in model. F is 3.14 and P value of which 0.08 less than 0.05 meaning Beta is statistically significant at 5% level.

Conclusion:

B<1, Hence invest for long term as stock is less responsive to Nifty 50 movements.

References:

Sharma, R., Mehta, A., & Gupta, S. (2023). Analysis of consumer goods sector stocks in India. Journal of Financial Studies, 14(2), 45–52.

IJRAR. (2025). A study on performance evaluation of retail sector stocks listed on NSE. International Journal of Research and Analytical Reviews, 12(3), 1–5.