{"id":23214,"date":"2025-12-20T17:06:26","date_gmt":"2025-12-20T11:36:26","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23214"},"modified":"2025-12-20T17:06:26","modified_gmt":"2025-12-20T11:36:26","slug":"relationship-of-nifty-50-with-ramcoind-industries-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23214","title":{"rendered":"Relationship of NIFTY 50 with Ramcoind Industries Limited"},"content":{"rendered":"

Relationship of NIFTY 50 with Ramco Industries Limited<\/span><\/b><\/p>\n

Author :- Rudresh Upadhyay<\/span><\/b><\/p>\n

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

Ramco Industries Limited is a well-established Indian manufacturing company engaged in the production of building materials such as fibre cement sheets, calcium silicate boards, and other construction-related products. The company\u2019s performance is closely linked to infrastructure development, real estate activity, and overall economic growth. Since these macroeconomic factors also influence stock market movements, the share price of Ramco Industries Limited tends to move in relation to broader market indices such as the Nifty 50. Studying the relationship between Ramco Industries Limited and the Nifty 50 helps in understanding the company\u2019s exposure to market risk.<\/span><\/p>\n

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

The objectives of the study are:<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>To calculate the Beta of Ramco Industries Limited with respect to the Nifty 50<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>To examine the statistical significance of beta in order to assess the systematic risk associated with Ramco Industries Limited shares<\/span><\/p>\n

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

1.\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Beta analysis and Market Risk of Indian stocks.<\/span><\/p>\n

2.\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Market Sensitivity of Manufacturing and Infrastructure Stocks.<\/span><\/p>\n

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

The study is based on historical data collected of Ramco Software Limited and Nifty 50 was downloaded from the website (<\/span>www.nseindia.com<\/span><\/a>) for the period of 1 December 2024 to 30 November 2025 by taking Friday as closing price were found and weekly returns of Ramco Industries Limited were calculated . Weekly returns of Nifty 50 were treated as the Independent variable(X) and weekly return of Ramco Industries Limited were treated as the dependent variable(Y). A simple linear regression was conducted by regression Y on X.<\/span><\/p>\n

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

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

\n

Ramco Weekly Return (Y) = .998(X) . Nifty Weekly Returns(X)- .150<\/span><\/p>\n<\/div>\n

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

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

Beta (Slope Coefficient)<\/span><\/p>\n<\/td>\n

\n

0.998<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Intercept<\/span><\/p>\n<\/td>\n

\n

0.150<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

t- Statistics (Beta)<\/span><\/p>\n<\/td>\n

\n

21.43<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

p- value (Beta)<\/span><\/p>\n<\/td>\n

\n

1.41<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

No. of observation (n)<\/span><\/p>\n<\/td>\n

\n

49<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

R Square<\/span><\/p>\n<\/td>\n

\n

0.909<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

f- Statistic<\/span><\/p>\n<\/td>\n

\n

Highly Significant<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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

Interpretation:-<\/span><\/b><\/p>\n

The beta value of 0.998 indicates that Ramco Industries Limited\u2019s stock moves almost in line with the Nifty 50.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>A 1% change in Nifty 50 returns results in approximately a 0.998% change in Ramco Industries Limited\u2019s returns. <\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The high t-statistic (21.43) and p-value close to zero confirm that the beta coefficient is statistically significant.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The R\u00b2 value of 0.909 suggests that 90.9% of the variation in Ramco Industries Limited\u2019s returns is explained by movements in the Nifty 50.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The remaining variation is attributed to company-specific factors such as raw material prices, construction demand, infrastructure spending, operational efficiency, and government policies.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The high F-statistic confirms the overall significance of the regression model.<\/span><\/p>\n

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

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

The study concludes that Ramco Industries Limited has a beta close to 1, indicating that the stock carries market-level systematic risk.<\/span><\/p>\n

This implies that: Ramco Industries Limited\u2019s stock generally moves in line with overall market trends. The stock is suitable for investors with a moderate risk appetite. During bullish market conditions, the stock is expected to perform similarly to the market. During \u00a0<\/span>bearish phases, the stock is likely to decline in line with market movements. Ramco Industries Limited is appropriate for long-term investors seeking returns aligned with market performance and infrastructure sector growth.<\/span><\/p>\n

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

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

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

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

Patel, A. and Shah, M. (2018) \u2018Market risk and beta analysis of Indian equities\u2019, GAP Bodhitaru: A Global Journal of Humanities, 1(2), pp. 36\u201346.<\/b><\/span><\/p>\n

Rao, K. and Mehta, S. (2019) \u2018Systematic risk analysis of manufacturing companies in India\u2019, International Journal of Business and Management Studies, 6(1), pp. 89\u201397.<\/span><\/p>\n

National Stock Exchange of India (NSE) \u2013 Secondary market data.<\/span><\/p>\n

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

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

Relationship of NIFTY 50 with Ramco Industries Limited Author :- Rudresh Upadhyay Introduction:- Ramco Industries Limited is a well-established Indian manufacturing company engaged in the production of building materials such as fibre cement sheets, calcium silicate boards, and other construction-related products. The company\u2019s performance is closely linked to infrastructure development, real estate activity, and overall… Continue reading Relationship of NIFTY 50 with Ramcoind Industries Limited<\/span><\/a><\/p>\n","protected":false},"author":139969,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23214","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\/23214","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\/139969"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23214"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23214\/revisions"}],"predecessor-version":[{"id":23215,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23214\/revisions\/23215"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23214"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23214"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23214"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}