{"id":22891,"date":"2025-03-25T23:55:51","date_gmt":"2025-03-25T18:25:51","guid":{"rendered":"https:\/\/www.sachdevajk.in\/?p=22891"},"modified":"2025-03-25T23:55:51","modified_gmt":"2025-03-25T18:25:51","slug":"relationship-of-star-paper-mills-with-nifty50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=22891","title":{"rendered":"Relationship of Star Paper Mills with Nifty50"},"content":{"rendered":"

Title:- Relationship of Star Paper Mills with Nifty50<\/span><\/b><\/p>\n

Author Name: <\/span>Sushant Jadhav<\/span><\/p>\n

Introduction:-<\/span><\/b><\/p>\n

Star Paper Mills Limited established in 1938, is an integrated Pulp and Paper Mill. Star Paper Mills Limited is an India-based company, which is engaged in the manufacture and supply of paper and paper board. The Company produces a range of industrial packaging and cultural paper catering to all segment of the consumer. The Company’s products include cultural paper and industrial papers. Its cultural papers applications include printing and envelop manufacturing, security paper printing, security paper printing, copy manufacturing, card manufacturing, and children scrap book. The Company’s industrial papers applications include carry bags, soap packing, paper cup base, crockery surface printing, children decorative, lamination decorative, soap wrapper, tobacco packing, poly coated wrappers, mentalization, poly coated wrappers, cooler pads, industrial laminates, battery jacket manufacturing, and grocery bags. Its other grade applications include ledger paper, account book paper, pamphlets, Thesis writing, certificates, bills books, and letter heads.<\/span><\/p>\n

Objective:-<\/span><\/b><\/p>\n

We objective of this study is to determine the beta value of <\/span>Star Paper Mills <\/span>Limited relative to the Nifty 50 index. Beta measures the stock’s volatility compared to the market. This analysis will help investors assess the risk associated with <\/span>Star Paper Mills <\/span>Limited stock and make informed investment decisions.<\/span><\/p>\n

Literature Review<\/span><\/b><\/p>\n

1. Stocks and Market Performance<\/span><\/b><\/p>\n

Kumar, (2018) The performance of infrastructure stocks like <\/span>Star Paper Mills<\/span> often correlates with broader economic indicators. Infrastructure companies are heavily influenced by government policies, infrastructure development spending, and national economic growth, which can be mirrored in the movements of the Nifty 50 Index. Indian infrastructure stocks generally align with macroeconomic trends, especially those reflected in stock market indices like Nifty. These stocks show a positive correlation during periods of government investment in infrastructure projects, which boosts both market sentiment and investor confidence.<\/span><\/p>\n

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2. Market Correlation with Nifty Index<\/span><\/b><\/p>\n

Raj (2020) Several studies have analyzed the correlation between sectoral stocks and broad market indices. Stocks like <\/span>Star Paper Mills<\/span>, which are linked to the government’s infrastructure initiatives, tend to experience movements in sync with Nifty due to similar responses to fiscal policies, budget allocations, and national economic performance. When Nifty rises due to positive economic sentiment, <\/span>Star Paper Mills<\/span> often sees an uptick as well, particularly if the government announces new infrastructure projects or funding for these kind of businesses.<\/span><\/p>\n

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Data Collection:-<\/span><\/b><\/p>\n

Data for <\/span>Star Paper Mills <\/span>Limited and Nifty 50 was downloaded for the period from 1st January 2024 to 31st December 2024. The data was manipulated to calculate the Friday closing prices for both indices. The Nifty 50 was represented as X and <\/span>Star Paper Mills <\/span>Limited as Y. A linear regression analysis was performed where Y was regressed on X.<\/span><\/p>\n

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Data Analysis:-<\/span><\/b><\/p>\n

Equation: <\/span><\/b>Star Paper Mills <\/span><\/b>=2.14 + 0.89 Nifty50<\/span><\/b><\/p>\n

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Interpretation:-<\/span><\/b><\/p>\n

The regression equation describes the relationship between Nifty50 (X) and Star Paper Mill share price (Y), indicating that Star Paper Mill’s share price is the dependent variable, while Nifty50 is the independent variable. With 46 observations ((N = 46)), the (R^2) value is 0.09, implying that approximately 9% of the variation in Star Paper Mill’s share price can be explained by changes in Nifty50. The F-value for the model is (4.5). <\/span><\/p>\n

The p-value for the slope is 0.038, which is less than the conventional threshold of 0.05. This indicates that the relationship between Nifty50 and Star Paper Mill’s share price is statistically significant at the 5% level. <\/span><\/p>\n

Consequently, this model provides evidence to suggest a significant linear relationship between Nifty50 and Star Paper Mill’s share price..<\/span><\/p>\n

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Conclusion:<\/span><\/b><\/p>\n

Since the Beta (0.8928) is greater than 1, it indicates that <\/span>Star Paper Mills <\/span>Limited is preferable for Long-term<\/strong> investment.<\/span><\/p>\n

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References<\/span><\/b><\/p>\n

Kumar, S., & Gupta, R. (2018). Macroeconomic factors and infrastructure stocks: A study of the Indian context. Journal of Financial Economics, 22(3), 213-230.<\/span><\/b><\/p>\n

Raj, M., & Patel, D. (2020). Stock market performance and its correlation with market indices in India: Focus on infrastructure stocks. Indian Journal of Economics and Business, 34(2), 78-92.<\/span><\/p>\n

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Title:- Relationship of Star Paper Mills with Nifty50 Author Name: Sushant Jadhav Introduction:- Star Paper Mills Limited established in 1938, is an integrated Pulp and Paper Mill. Star Paper Mills Limited is an India-based company, which is engaged in the manufacture and supply of paper and paper board. The Company produces a range of industrial… Continue reading Relationship of Star Paper Mills with Nifty50<\/span><\/a><\/p>\n","protected":false},"author":139749,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-22891","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/22891","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/users\/139749"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22891"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/22891\/revisions"}],"predecessor-version":[{"id":22892,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/22891\/revisions\/22892"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22891"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22891"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22891"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}