{"id":23140,"date":"2025-12-20T01:34:23","date_gmt":"2025-12-19T20:04:23","guid":{"rendered":"https:\/\/www.sachdevajk.in\/?p=23140"},"modified":"2025-12-20T01:34:23","modified_gmt":"2025-12-19T20:04:23","slug":"relationship-of-narayana-hrudayalaya-with-nifty","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23140","title":{"rendered":"Relationship of Narayana Hrudayalaya with NIFTY"},"content":{"rendered":"

TITLE: Relationship of Narayana Hrudayalaya with NIFTY<\/span><\/b><\/p>\n

Author<\/span><\/b>: Neethal Sequeira<\/span><\/p>\n

\u00a0<\/span><\/p>\n

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

Narayana Hrudayalaya Limited is one of India\u2019s leading healthcare providers, specializing in tertiary and primary healthcare services. The company operates a wide network of hospitals across India and abroad. It is known for affordable healthcare delivery combined with advanced medical technology. The company is listed on the National Stock Exchange and is part of the healthcare sector.<\/span><\/p>\n

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

To calculate the beta of Narayana Hrudayalaya with respect to the NIFTY index and to study the significance of the relationship between the equity returns and nifty returns.<\/span><\/p>\n

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

Balaji, et. al., (2025)<\/strong> conducted an empirical study to test the validity of the Capital Asset Pricing Model (CAPM) in the Indian stock market using companies listed in the NIFTY 500 index. The study estimated beta values through time-series regression by relating individual stock returns to market returns. The findings showed that although a linear relationship between stock returns and market returns exists, beta was not statistically significant for many companies. The study concluded that market movements alone do not fully explain stock returns in India and that company-specific factors play an important role. This supports the present study, where the beta of Narayana Hrudayalaya with respect to NIFTY was found to be statistically insignificant.<\/p>\n

Bhat and Pandey (2023)<\/strong> analysed the risk\u2013return relationship of selected Indian stocks using NIFTY as the market benchmark. Weekly returns were calculated and regression analysis was applied to estimate beta values. The results indicated that several stocks showed weak correlation with the market index and low explanatory power of beta, as reflected by low R\u00b2 values. The study concluded that beta may not be a reliable indicator for predicting stock returns in the Indian market, especially over shorter time periods. These findings are consistent with the results of the current study, which also observes a weak and insignificant relationship between Narayana Hrudayalaya returns and NIFTY returns<\/p>\n

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

Historical price data of Narayana Hrudayalaya and NIFTY-50 index was downloaded from the NSE website for the period 01\/12\/2024 to 30\/11\/2025.The data was manipulated to obtain Friday closing prices. Weekly returns were calculated using percentage change method.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

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

Regression equation<\/span><\/b>:<\/span><\/p>\n

<\/span><\/p>\n

Where,
Y = Weekly return of Equity
X = Weekly return of NIFTY<\/span><\/p>\n

N = 49
R\u00b2 = 0.008
F = 0.394
p-value = 0.533<\/span><\/p>\n

The positive beta value indicates a positive relationship<\/b> between the returns of equity and NIFTY. This means that an increase in NIFTY returns leads to an increase in the equity returns of Narayana Hrudayalaya.<\/span><\/p>\n

If NIFTY returns increase by one unit, the stock returns of Narayana Hrudayalaya increase by 0.55 units.<\/span><\/p>\n

The t-statistic for beta is 0.628 and the p-value is 0.533. Since the p-value is greater than the level of significance (0.05), beta is statistically insignificant.<\/p>\n

The R\u00b2 value of 0.008 indicates that only 0.8% of the variation in equity returns is explained by NIFTY returns. The remaining 99.2% variation is due to other firm-specific and market factors not included in the model.<\/p>\n

The F-value of 0.394 with a p-value of 0.533 indicates that the overall regression model is statistically insignificant<\/p>\n

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

Since \u03b2 is positive but statistically insignificant, NIFTY returns do not have a meaningful impact on the equity returns.<\/span><\/p>\n

Hence, the relationship between NIFTY returns and the dependent variable is weak and unreliable for investment decision-making.<\/span><\/p>\n

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

Balaji, S., et. al, (2025). Exploring the validity of Capital Asset Pricing Model (CAPM) in the Indian market<\/em>. Journal of Marketing & Social Research. March 2025 (Volume 2, Issue 2).<\/span><\/span>\u00a0<\/span><\/span><\/p>\n

Bhat, K., and Pandey, A. (2023). Risk and return analysis of selected Indian stocks using CAPM<\/em>. Indian Journal of Finance.<\/p>\n

\u00a0<\/span><\/b><\/p>\n

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

TITLE: Relationship of Narayana Hrudayalaya with NIFTY Author: Neethal Sequeira \u00a0 Introduction Narayana Hrudayalaya Limited is one of India\u2019s leading healthcare providers, specializing in tertiary and primary healthcare services. The company operates a wide network of hospitals across India and abroad. It is known for affordable healthcare delivery combined with advanced medical technology. The company… Continue reading Relationship of Narayana Hrudayalaya with NIFTY<\/span><\/a><\/p>\n","protected":false},"author":139946,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23140","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\/23140","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\/139946"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23140"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23140\/revisions"}],"predecessor-version":[{"id":23141,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23140\/revisions\/23141"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23140"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23140"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23140"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}