{"id":23158,"date":"2025-12-20T13:22:06","date_gmt":"2025-12-20T07:52:06","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23158"},"modified":"2025-12-20T13:22:06","modified_gmt":"2025-12-20T07:52:06","slug":"title-relationship-of-nifty-50-with-vedanta-ltd","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23158","title":{"rendered":"Title: – Relationship of NIFTY 50 with Vedanta Ltd."},"content":{"rendered":"

Title: – Relationship of NIFTY 50 with Vedanta<\/span><\/b><\/p>\n

Author<\/span><\/b>: – Varsha Kucheria<\/span><\/p>\n

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

Vedanta Limited traces its roots to the 1970s, when Anil Agarwal began consolidating metal and mining interests under Sterlite Industries in Mumbai. Sterlite initially focused on copper and later expanded into aluminium and power, while group entities like Sesa Goa (iron ore) and Hindustan Zinc (zinc-lead-silver) were added through major acquisitions in the 1990s and early 2000s. In 2003, the broader Vedanta group was listed in London, and by 2012\u20132015 the Indian operations were consolidated under a single flagship, Vedanta Limited, created by merging Sterlite Industries, Sesa Goa and other subsidiaries. Today, Vedanta Limited stands as one of India\u2019s largest diversified natural resources companies, spanning zinc, oil and gas, aluminium, power, iron ore and steel.<\/span><\/p>\n

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

Objective<\/span><\/b>-:\u00a0\u00a0Calculation of BETA for Vedanta ltd. and observe it\u2019s significance in respect with Nifty 50.<\/span><\/p>\n

Literature<\/span><\/b>\u00a0Review-:<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/span>EFFECT OF THE CAIRN-VEDANTA MERGER ON STOCK RETURNS OF CAIRN INDIA LTD: AN EVENT STUDY.<\/span><\/p>\n

KISHORE, KAMAL<\/span><\/a>;\u00a0JINDAL, DIVYA<\/span><\/a><\/span><\/p>\n

In the fiercely competitive business environment, corporates are increasingly employing merger and acquisition strategies for survival and growth. Merger announcements are quite often sensed by markets in advance and are marked by unusual movement in share prices in pre and post-merger scenario. A mega merger in corporate India was announced on a Sunday, 14th June, 2015 between Cairn India Ltd. and Vedanta Ltd. It was received by markets and shareholders with lot of anxiety due to pros and cons associated with merger. Cairn India is one of the largest independent oil &amp; gas exploration and production companies in India which operates 27% of India’s domestic crude oil production. Its balance sheet has been very sound with a high cash balance position. The merger objective was declared to strengthen Vedanta’s balance sheet. The present study uses Event-study methodology to investigate into the impact of the merger announcement on the stock returns of Cairn India Ltd.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/span>Stock Market Reaction to<\/span><\/b>\u00a0Inclusion and Exclusion of Stocks in National Stock Index Nifty50<\/b><\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/span>Author: PVR Subrahmanyam<\/span><\/b><\/p>\n

Research Scholar, (Registration No<\/span><\/p>\n

The research paper investigates Stock Market reaction for Stocks Inclusion and Exclusion<\/span><\/p>\n

from The National Stock Index Nifty 50. Stock\u2019s market price and volumes traded are<\/span><\/p>\n

considered for the study. Utilizing a combination of qualitative and quantitative approaches,<\/span><\/p>\n

the study explores the relationship between NIFTY 50 price fluctuations and stock price and<\/span><\/p>\n

volume fluctuations. The paper briefly emphasizes the significance of the National Index as<\/span><\/p>\n

an economic indicator, highlighting the connection between overall economic performance<\/span><\/p>\n

and the success of enterprises. Previous studies by the author employed statistical techniques<\/span><\/p>\n

such as ANOVA tests, correlation analysis, and regression analysis to examine the<\/span><\/p>\n

relationship between stock\u2019s market prices, National Index Nifty 50 prices, and the overall<\/span><\/p>\n

movement of the index (Subrahmanyam, P.V.R. (December 2023). Impact of Inclusion and<\/span><\/p>\n

Exclusion in National Index Nifty50 on Stocks Price: A Statistical Study. International<\/span><\/p>\n

Journal of Transformations in Business Management, 13(4), 78-98.).<\/span><\/p>\n

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

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

Data Collection<\/span><\/b>-:Historical data of Vedanta and NIFTY 50 was downloaded from NSEINDIA.COM, Friday closing prices were found and weekly returns were calculated from 1 December 2024 to 31 November 2025. Weekly returns of NIFTY was taken as \u2018X\u2019 and of Vedanta was taken as \u2018Y\u2019. \u2018Y\u2019 was regressed on \u2018X\u2019.<\/span><\/p>\n

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

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

Regression Equation-:\u00a0<\/span><\/p>\n

Vedanta =<\/span>–<\/span>\u00a0<\/span>0.020148828*Nifty 50(X)-(-39.47264883)<\/span><\/p>\n

Beta Slope- 0.0201<\/span><\/p>\n

R2<\/sup>=0.395065<\/span><\/p>\n

N=48<\/span><\/p>\n

F=<\/span>\u00a0<\/span>30.69430468<\/span><\/p>\n

T-Stat= Intercept(y)-<\/span>\u00a0<\/span>-0.4436608<\/span><\/p>\n

For X=<\/span>\u00a0<\/span>5.5402441<\/span><\/p>\n

P-Value= 0.0000013265<\/span><\/p>\n

The regression results show a positive and statistically significant relationship between the weekly returns of Nifty 50 and Vedanta Limited.<\/span><\/p>\n

A 1% increase in Nifty 50 returns leads to an approximate 0.201% increase in vedanta\u2019s weekly returns, indicating that MRF moves more than the market.<\/span><\/p>\n

The t-statistic of 5.5402 and p-value less than 0.01 confirm that the beta coefficient is highly significant, meaning market movements strongly influence MRF returns.<\/span><\/p>\n

The R\u00b2 value of 0.395 indicates that 39.5% of the variation in Vedanta\u2019s\u00a0\u00a0returns is explained by movements in the Nifty 50, while the remaining 60.5% is due to company-specific factors.<\/span><\/p>\n

The F-statistic of 30.69 with a very low probability value confirms that the overall regression model is statistically significant.<\/span><\/p>\n

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

VEDANTA Limited has a beta of 0.201, which is smaller than 1, indicating that the stock is for long term investment.<\/span><\/p>\n

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

National Stock Exchange of India Ltd. (2024).\u00a0NIFTY 50 historical index data<\/i>. NSE India.
https:\/\/www.nseindia.com<\/a><\/span><\/p>\n

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

Damodaran, A. (2012).\u00a0Investment valuation: Tools and techniques for determining the value of any asset<\/i>\u00a0(3rd ed.). Wiley.<\/span><\/p>\n

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

www.scholargoogle.com<\/span><\/p>\n

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

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

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

Title: – Relationship of NIFTY 50 with Vedanta Author: – Varsha Kucheria Introduction Vedanta Limited traces its roots to the 1970s, when Anil Agarwal began consolidating metal and mining interests under Sterlite Industries in Mumbai. Sterlite initially focused on copper and later expanded into aluminium and power, while group entities like Sesa Goa (iron ore)… Continue reading Title: – Relationship of NIFTY 50 with Vedanta Ltd.<\/span><\/a><\/p>\n","protected":false},"author":139949,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23158","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\/23158","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\/139949"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23158"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23158\/revisions"}],"predecessor-version":[{"id":23159,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23158\/revisions\/23159"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23158"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23158"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23158"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}