{"id":23184,"date":"2025-12-20T16:00:21","date_gmt":"2025-12-20T10:30:21","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23184"},"modified":"2025-12-20T16:00:21","modified_gmt":"2025-12-20T10:30:21","slug":"relationship-of-nifty-50-with-redington","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23184","title":{"rendered":"Relationship of Nifty 50 with Redington"},"content":{"rendered":"

RELATIONSHIP OF NIFTY 50 WITH REDINGTON LIMITED<\/span><\/span><\/p>\n

Author :- Rudransh Agrawal<\/span><\/div>\n

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

Redington Limited is a leading integrated supply chain solutions provider, primarily engaged in technology distribution, mobility solutions, cloud services, and emerging digital technologies. The company\u2019s financial performance is closely linked to overall economic growth, corporate IT spending, consumer demand for electronic products, and market sentiment. Since these factors are influenced by broader stock market movements, the share price of Redington Limited tends to move in relation to benchmark indices such as the Nifty 50. Studying the relationship between Redington Limited and the Nifty 50 helps in understanding the systematic market risk associated with the company\u2019s stock.<\/span><\/p>\n

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

To calculate the Beta of Redington Limited with respect to the Nifty 50 and analyze its statistical significance in order to assess the systematic risk of Redington Limited shares.<\/span><\/p>\n

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

Beta Analysis and Market Risk of Indian Stocks<\/span>
<\/span>Existing financial literature identifies beta as an important measure of systematic risk, indicating how sensitive a stock\u2019s returns are to changes in the overall market. Stocks with beta values close to 1 tend to move in line with the market, while beta values greater than 1 indicate higher volatility compared to the market index.<\/span><\/p>\n

Market Sensitivity of Technology and Distribution Companies<\/span>
<\/span>Studies on technology distribution and supply-chain-based companies suggest that these firms are moderately to highly sensitive to market movements due to their dependence on corporate investment cycles, consumer demand, and macroeconomic stability. Therefore, beta analysis is particularly relevant for companies like Redington Limited.<\/span><\/p>\n

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

– Historical data for Redington Limited and Nifty 50 was collected from NSE.<\/span>
<\/span>– Weekly closing prices were considered for the study.<\/span>
<\/span>– Weekly returns were calculated.<\/span>
<\/span>– Nifty 50 weekly returns were treated as the independent variable (X).<\/span>
<\/span>– Redington Limited weekly returns were treated as the dependent variable (Y).<\/span>
<\/span>– A simple linear regression model was used to analyze the relationship between the two.<\/span><\/p>\n

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

Regression Equation<\/span><\/p>\n

Redington Limited (Y) = 1.01 \u00d7 Nifty 50 (X) \u2013 0.29<\/span><\/p>\n

Regression Statistics<\/span><\/p>\n

Beta (Slope Coefficient): 1.01<\/span>
<\/span>Intercept: \u20130.29<\/span>
<\/span>t-Statistic (Beta): 14.97<\/span>
<\/span>p-value (Beta): 0.000<\/span>
<\/span>Number of Observations: 48<\/span>
<\/span>R\u00b2: 0.83<\/span>
<\/span>Adjusted R\u00b2: 0.83<\/span><\/p>\n

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

The regression results indicate a strong positive and statistically significant relationship between the weekly returns of the Nifty 50 and Redington Limited. A beta value of 1.01 suggests that Redington Limited moves almost in line with the overall market. The high t-statistic and near-zero p-value confirm that the beta coefficient is statistically significant.<\/span>
<\/span>
<\/span>The R\u00b2 value of 0.83 indicates that 83% of the variation in Redington Limited\u2019s returns is explained by movements in the Nifty 50, while the remaining 17% is influenced by company-specific factors such as operational efficiency, changes in technology demand, distribution margins, and global supply chain conditions.<\/span><\/p>\n

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

    \n
  1. Redington Limited has a beta of approximately 1.01, indicating that the stock exhibits market-level risk and generally moves in line with the Nifty 50. This implies that the stock is suitable for investors with a moderate risk appetite. Redington Limited is expected to perform well during stable or bullish market conditions but may mirror market downturns during bearish phases. Overall, the stock is suitable for investors seeking market-aligned returns with limited excess volatility.<\/span><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"

    RELATIONSHIP OF NIFTY 50 WITH REDINGTON LIMITED Author :- Rudransh Agrawal Introduction Redington Limited is a leading integrated supply chain solutions provider, primarily engaged in technology distribution, mobility solutions, cloud services, and emerging digital technologies. The company\u2019s financial performance is closely linked to overall economic growth, corporate IT spending, consumer demand for electronic products, and… Continue reading Relationship of Nifty 50 with Redington<\/span><\/a><\/p>\n","protected":false},"author":139964,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23184","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\/23184","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\/139964"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23184"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23184\/revisions"}],"predecessor-version":[{"id":23185,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23184\/revisions\/23185"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23184"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23184"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23184"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}