{"id":23212,"date":"2025-12-20T16:54:59","date_gmt":"2025-12-20T11:24:59","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23212"},"modified":"2025-12-20T16:54:59","modified_gmt":"2025-12-20T11:24:59","slug":"relationship-of-nifty-50-with-aadhar-housing-finance-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23212","title":{"rendered":"Relationship of Nifty 50 with Aadhar Housing Finance Limited"},"content":{"rendered":"<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">Topic: Relationship of Nifty 50 with Aadhar Housing Finance Limited<br \/>Author: Arnav Garg<\/span><\/i><\/b><\/p>\n<p class=\"MsoNormal\" style=\"text-align: justify\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">Introduction:<br \/><\/span><\/i><\/b>Aadhar Housing Finance Limited is a leading Indian housing finance company focused on the low-income housing segment, primarily serving Tier 2 to Tier 4 cities. Backed by Blackstone, it provides mortgage loans to salaried and self-employed individuals who often lack formal credit documentation. With over \u20b927,000 crore in AUM and a network of 600+ branches, it plays a vital role in financial inclusion. The company achieved a significant milestone in May 2024 with its listing on the BSE and NSE.<b><\/b><\/p>\n<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">Objective:<br \/><\/span><\/i><\/b><a name=\"_Hlk217133946\"><\/a>The primary objective of this study is to analyse the systematic risk of Aadhar Housing Finance Ltd. relative to the broader market (Nifty 50 Index). Specifically, the study aims to:<\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\">Calculate the Beta (\u03b2) coefficient of Aadhar Housing Finance.<\/li>\n<li class=\"MsoNormal\">Determine the stock&#8217;s volatility compared to the market benchmark.<\/li>\n<li class=\"MsoNormal\">Assess whether the stock acts as an aggressive or defensive investment during the analysed period.<\/li>\n<\/ul>\n<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">Literature Review:<\/span><\/i><\/b><\/p>\n<p class=\"MsoNormal\"><b><i><\/i><\/b><!-- [if !supportLists]--><span style=\"font-family: Symbol\">\u00b7<span style=\"font-size: 7pt;line-height: normal;font-family: 'Times New Roman'\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><b>Modern Portfolio Theory (MPT):<\/b> Discusses how adding low-beta (defensive) stocks like Aadhar Housing can reduce overall portfolio variance.<\/p>\n<p class=\"MsoNormal\"><!-- [if !supportLists]--><span style=\"font-family: Symbol\">\u00b7<span style=\"font-size: 7pt;line-height: normal;font-family: 'Times New Roman'\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><b>Systematic vs. Unsystematic Risk:<\/b> Systematic risk (Market risk) cannot be diversified away, while unsystematic risk (Company-specific risk) can be mitigated through a diversified portfolio.<\/p>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 14.0pt;line-height: 107%\">Data Collection:<br \/><\/span><\/b><a name=\"_Hlk217134243\"><\/a>The data for this analysis was sourced from the provided financial dataset covering the period from December 1, 2024, to November 30, 2025.<\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\"><b>Stock:<\/b> Aadhar Housing Finance Ltd. (Closing Prices).<\/li>\n<li class=\"MsoNormal\"><b>Market Index:<\/b> Nifty 50 (Closing Prices).<\/li>\n<li class=\"MsoNormal\"><b>Frequency:<\/b> Weekly closing prices were used to calculate weekly returns.<\/li>\n<li class=\"MsoNormal\"><b>Observation Count:<\/b> 48 weekly data points.<\/li>\n<li class=\"MsoNormal\"><b>Variables:<\/b>\n<ul style=\"margin-top: 0cm\" type=\"circle\">\n<li class=\"MsoNormal\"><b>Independent Variable (X):<\/b> Weekly Returns of NIFTY 50 Index.<\/li>\n<li class=\"MsoNormal\"><b>Dependent Variable (Y):<\/b> Weekly Returns of AADHARFC.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">Data Analysis:<\/span><\/i><\/b><\/p>\n<p class=\"MsoNormal\"><b><i><\/i><\/b><!-- [if !supportLists]--><span style=\"font-family: Symbol\">\u00b7<span style=\"font-size: 7pt;line-height: normal;font-family: 'Times New Roman'\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><b>Regression Equation:<br \/><!-- [if !supportLineBreakNewLine]--><br \/><!--[endif]--><\/b><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"text-align: center\" align=\"center\"><i><span style=\"color: black;background: #BDD6EE\">Aadhar Cement Limited (Y) = -0.1013 + 0.6094 * Nifty 50 (X)<\/span><\/i><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\"><i>\u00a0<\/i><!-- [if !supportLists]--><span style=\"font-family: Symbol\">\u00b7<span style=\"font-size: 7pt;line-height: normal;font-family: 'Times New Roman'\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><b>Other Variables:<\/b><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\">o<span style=\"font-size: 7pt;line-height: normal;font-family: 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><!--[endif]--><i>T-Stat:<\/i> 2.2498<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\">o<span style=\"font-size: 7pt;line-height: normal;font-family: 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><!--[endif]--><i>No. of Observations (n)<\/i>: 48<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\">o<span style=\"font-size: 7pt;line-height: normal;font-family: 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><!--[endif]--><i>R^2:<\/i> 0.0991 (91%)<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\">o<span style=\"font-size: 7pt;line-height: normal;font-family: 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><!--[endif]--><i>F- Stat:<\/i> 5.0615<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\">o<span style=\"font-size: 7pt;line-height: normal;font-family: 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><!--[endif]--><i>P- Value:<\/i> 0.0293<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\">\u00a0<!-- [if !supportLists]--><span lang=\"EN-US\" style=\"font-family: Symbol\">\u00b7<span style=\"font-size: 7pt;line-height: normal;font-family: 'Times New Roman'\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><!--[endif]--><b><span lang=\"EN-US\">Interpretation: <\/span><\/b><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\">o<span style=\"font-size: 7pt;line-height: normal;font-family: 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\">The regression equation above describes the relationship between the Weekly Return of Nifty 50 (X) and the share price of Aadhar Housing Finance Limited (Y). A positive coefficient of X indicates a direct relationship. <\/span><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\">o<span style=\"font-size: 7pt;line-height: normal;font-family: 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\">If the weekly price of Nifty 50 rises by 1%, the weekly price of\u00a0Aadhar Housing Finance Limited will rise by 0.61% and vice versa. <\/span><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\">o<span style=\"font-size: 7pt;line-height: normal;font-family: 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\">The t-stat for Beta (coefficient of Weekly Return of Nifty (X)) is 2.2498, and the p-value is 0.0293, which is less than 0.05, indicating that Beta (\u03b2) is statistically significant at the 5% level. <\/span><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\">o<span style=\"font-size: 7pt;line-height: normal;font-family: 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\">The number of observations is 48, and R^2 is 0.0991, meaning that 91% of the variation in the Weekly Return of Aadhar Housing Finance Limited (Y) is explained by the Weekly Return of Nifty (X), while the remaining 9% is attributed to other factors not included in the model, such as equity fundamentals. <\/span><\/p>\n<p class=\"MsoListParagraphCxSpLast\" style=\"margin-left: 72.0pt;text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\">o<span style=\"font-size: 7pt;line-height: normal;font-family: 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><!--[endif]--><span lang=\"EN-US\">This is not a good sign, as the Nifty index influence is more, and the company fundamentals are not strong. The F-stat is 5.0615, and the p-value is 0.0293, indicating that the overall model is statistically significant at the 5% level.<\/span><\/p>\n<p class=\"MsoNormal\" style=\"text-align: justify\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">Conclusion:<br \/><\/span><\/i><\/b>Since Beta (\u03b2) = 0.6094, <span lang=\"EN-US\">which is less than 1, the stock is a defensive one, and one must invest in this company for the long term if Nifty is expected to rise.<\/span><\/p>\n<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">\u00a0References:<\/span><\/i><\/b><\/p>\n<ul>\n<li class=\"MsoNormal\"><b><i><\/i><\/b><!-- [if !supportLists]--><b>Sharpe (1964)<\/b>: Foundational CAPM theory explaining Beta and market risk.<\/li>\n<li class=\"MsoNormal\"><b>Bodie, Kane &amp; Marcus (2021)<\/b>: Discuss aggressive vs. defensive stocks based on Beta values.<\/li>\n<li class=\"MsoNormal\"><b>Ross, Westerfield &amp; Jaffe (2019)<\/b>: Provides insights into Beta interpretation for investment strategy<\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<p class=\"MsoNormal\">\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Topic: Relationship of Nifty 50 with Aadhar Housing Finance LimitedAuthor: Arnav Garg Introduction:Aadhar Housing Finance Limited is a leading Indian housing finance company focused on the low-income housing segment, primarily serving Tier 2 to Tier 4 cities. Backed by Blackstone, it provides mortgage loans to salaried and self-employed individuals who often lack formal credit documentation.&hellip; <a class=\"more-link\" href=\"http:\/\/www.sachdevajk.in\/?p=23212\">Continue reading <span class=\"screen-reader-text\">Relationship of Nifty 50 with Aadhar Housing Finance Limited<\/span><\/a><\/p>\n","protected":false},"author":139966,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23212","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\/23212","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\/139966"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23212"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23212\/revisions"}],"predecessor-version":[{"id":23213,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23212\/revisions\/23213"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23212"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23212"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23212"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}