Title:
A Study on Relationship between Market Returns (NIFTY 50) and Stock Returns of Yatra Online Limited and its Significance
Author:
Yash Maismale (27)
Introduction:
Yatra Online Limited is one of India’s leading online travel companies, providing services such as flight bookings, hotel reservations, and holiday packages. It plays a significant role in the digital travel industry and tourism sector. Being listed on the NSE, its stock performance reflects both company growth and overall market trends.
Objective:
Calculation of Beta and observe its Significance
Literature Review:
According to Stephen A. Ross, stock returns are influenced by multiple economic factors and systematic risk plays a key role in determining expected returns. Regression analysis helps in identifying how strongly a stock reacts to market movements.
As stated by John Lintner, beta is an important measure of risk that reflects the sensitivity of a stock’s returns to changes in the overall market. It is widely used by investors to assess risk and make investment decisions.
Data Collection:
Data for NIFTY 50 and my company “Yatra Online Limited” was downloaded from NSE India.com for the period 1-1-2025 to 31-12-2025 Friday closing prices for NIFTY 50 and my company was segregated weekly and returns were calculated. Weekly returns of NIFTY 50 were taken as X and weekly returns of the company were taken as Y. Y was taken as regress.
Data Analysis:
Regression Equation:
N = 48, F = 60.45, p = 0.00, x = 1.10, R² = 0.57,
Y = 0.0015 + 1.10X
Interpretation:
The above equation shows the relationship between market return and company return. The positive sign of beta indicates that there is a direct relationship between NIFTY and the stock of Yatra Online Limited, which means if market rises the company return also rises and vice versa.
If NIFTY return increases by 1 unit, the return of the company will increase by 1.10 units. Number of observations are 48. The value of β (Beta) is 1.10.
The p-value is less than 0.05 which means beta is statistically significant at 5% level. R² is approximately 0.57 which means 57% of variation in company return is explained by market return and 43% is due to other factors not included in the model.
Thus, the model is significant and there is a strong positive relationship between NIFTY and the company’s returns.
Conclusion:
Since beta is greater than 1, it means the stock is more volatile than the market and is suitable for short-term investors when the market is rising.
References:
Ross, S. A. (1976). Arbitrage Pricing Theory.
Lintner, J. (1965). The Valuation of Risk Assets.
National Stock Exchange of India – Historical Market Data