{"id":23016,"date":"2025-12-18T22:18:10","date_gmt":"2025-12-18T16:48:10","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23016"},"modified":"2025-12-18T22:18:10","modified_gmt":"2025-12-18T16:48:10","slug":"relationship-with-ashok-leyland-ltd-with-nifty","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23016","title":{"rendered":"Relationship with Ashok Leyland Ltd with Nifty"},"content":{"rendered":"

1. INTRODUCTION<\/span><\/p>\n

Ashok Leyland, the flagship company of the Hinduja Group, is a leading name in the global commercial vehicle industry, ranking second in India and nineteenth worldwide in truck manufacturing, as well as fourth in bus manufacturing globally. Headquartered in Chennai, the company has a strong international presence with manufacturing facilities across India, the UAE, and the UK, as well as strategic joint ventures in automotive components. Ashok Leyland has a well-diversified portfolio covering trucks, buses, defense vehicles, power solutions, and advanced automotive technologies. Renowned for innovation, it is a pioneer in clean and BS-compliant engine technologies, including SCR, iEGR, CNG, and OBD-II-certified systems, and holds multiple global quality and information security certifications, such as ISO\/TS 16949 and ISO 27001:2022. The company is also a two-time Deming Prize winner, reflecting excellence in manufacturing and process management. Supported by one of the largest service networks in the commercial vehicle industry, with over 52,000 touchpoints, Ashok Leyland ensures superior customer service through its \u201cQuick Response\u201d promise, reinforcing its strong brand position among India\u2019s top companies.<\/p>\n

2. OBJECTIVE<\/p>\n

\u2022\u00a0 To calculate the \u03b2 of Ashok Leyland Pvt Ltd. and observe its significance.<\/p>\n

3. DATA COLLECTION<\/p>\n

\u2022\u00a0 Historical price data for Ashok Leyland and the NIFTY50 index were sourced from the NSE website for the period 01 December 2024 to 30 November 2025.<\/p>\n

\u2022\u00a0 Weekly returns were calculated to analyze performance trends.<\/p>\n

\u2022\u00a0 The processed data was structured in spreadsheet format to support further statistical and graphical analysis.<\/p>\n

4. LITERATURE REVIEW<\/p>\n

\u2022\u00a0 Sharpe (1964) explains through the Capital Asset Pricing Model (CAPM) that stock returns are directly influenced by market returns, with beta (\u03b2) measuring systematic risk. A statistically significant beta indicates that the stock is sensitive to market movements, supporting the use of market indices like NIFTY to explain individual stock returns.<\/p>\n

\u2022\u00a0 Bodie, Kane, and Marcus (2018) note that single-factor market models often produce low R\u00b2 values, as firm-specific and macroeconomic factors also affect stock returns. However, a significant market coefficient confirms that market returns remain an important determinant of individual stock performance.<\/p>\n

5. DATA ANALYSIS<\/p>\n

\u2022\u00a0 Regression Equation: –\u00a0<\/p>\n

y = 1.5354x – 0.5191<\/p>\n

where: –<\/p>\n

y = Weekly Return for Ashok Leyland Ltd.<\/p>\n

x = Weekly Return for NIFTY<\/p>\n

This equation tells us that if the weekly returns of NIFTY increase, then the weekly return for Ashok Leyland Ltd also increases.<\/p>\n

\u2022\u00a0 Number of Observations = 48<\/p>\n

\u2022\u00a0 t-stat for \u03b2 = 2.434520613<\/p>\n

\u2022\u00a0 P-value = 0.01764702: – Since the p-value (0.0176) is less than 0.05, the slope coefficient is statistically significant at the 1% level.<\/p>\n

\u2022\u00a0 R\u00b2 = 0.116380375: – The R\u00b2 value of 0.1164 implies that approximately 11.64% of the variation in Ashok Leyland\u2019s weekly returns is explained by movements in the NIFTY 50.The remaining 88.36% of variation is due to other variables, which are not included in the model.<\/p>\n

\u2022\u00a0 F = 5.926890614: -The F-statistic value confirms that the regression model is overall statistically significant.<\/p>\n

6. CONCLUSION\u00a0<\/p>\n

\u2022\u00a0 The \u03b2 value is 1.5354, which shows that the stock is more sensitive to market movements than the market itself.<\/p>\n

7. REFERENCES<\/p>\n

\u2022\u00a0 Sharpe, W. F. (1964). Capital Asset Prices: A Theory of Market Equilibrium under Conditions of Risk. The Journal of Finance, 19(3), 425\u2013442.<\/p>\n

\u2022\u00a0 Bodie, Z., Kane, A., & Marcus, A. J. (2018). Investments (11th ed.). McGraw-Hill Education.<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

1. INTRODUCTION Ashok Leyland, the flagship company of the Hinduja Group, is a leading name in the global commercial vehicle industry, ranking second in India and nineteenth worldwide in truck manufacturing, as well as fourth in bus manufacturing globally. Headquartered in Chennai, the company has a strong international presence with manufacturing facilities across India, the… Continue reading Relationship with Ashok Leyland Ltd with Nifty<\/span><\/a><\/p>\n","protected":false},"author":139883,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23016","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\/23016","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\/139883"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23016"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23016\/revisions"}],"predecessor-version":[{"id":23017,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23016\/revisions\/23017"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23016"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23016"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23016"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}