{"id":23252,"date":"2025-12-20T23:27:00","date_gmt":"2025-12-20T17:57:00","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23252"},"modified":"2025-12-20T23:27:00","modified_gmt":"2025-12-20T17:57:00","slug":"report-on-relationship-of-nifty-50-and-dabur-india-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23252","title":{"rendered":"Report on Relationship of Nifty 50 and Dabur India Limited"},"content":{"rendered":"

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

Topic:<\/span><\/b> Relationship of Nifty 50 and Dabur India Limited<\/span><\/p>\n

Author:<\/span><\/b> Dhruvil Vikramkumar Jain<\/span><\/p>\n

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

Dabur India Limited is a household name in India, known for bringing the goodness of Ayurveda into everyday life since 1884. From health supplements and personal care to foods and home care, Dabur\u2019s products are trusted by families across generations. Its popular brands like Dabur Chyawanprash and Dabur Honey reflect a blend of traditional wisdom and modern science. Today, Dabur reaches consumers in over 120 countries while staying rooted in natural and sustainable practices.<\/span><\/p>\n

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Objectives:<\/span><\/b><\/p>\n

Calculation of Beta of Dabur India Limited and observe its significance.<\/span><\/p>\n

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

Several studies have examined the relationship between individual stock returns and broader market indices to understand systematic risk. Research based on the Nifty 50 highlights that beta is an effective measure to assess how sensitive a stock is to market movements. Prior literature suggests that stocks with a beta less than one are relatively defensive and experience lower volatility compared to the market, making them suitable for risk-averse investors. These studies also emphasize that market indices like Nifty 50 serve as reliable benchmarks for evaluating stock performance and risk behaviour in the Indian Dabur India Limited market.<\/span><\/p>\n

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Another stream of literature focuses on FMCG companies and their market behaviour, particularly companies like Dabur India Limited. Researchers have observed that FMCG stocks generally show stable returns and lower beta values due to consistent demand and essential nature of their products. Studies analysing Dabur\u2019s stock performance indicate that it tends to be less affected by market fluctuations, reflecting its defensive characteristics. Such findings support the relevance of beta analysis in understanding Dabur\u2019s risk profile and its relationship with broader market indices like the Nifty 50.<\/span><\/p>\n

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

Historical data of Dabur India Limited and Nifty 50 was downloaded from nseindia.com and Friday closing prices were calculated, weekly returns of Nifty 50 were taken as X and weekly return of Dabur India Limited taken as Y. Y was regressed on X.<\/span><\/p>\n

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

Based on the Regression Analysis performed on the Weekly returns we get this:<\/span><\/p>\n

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

Y=0.165+0.828X<\/span><\/p>\n

N = 48 | R square = 0.232 | F = 13.93 | P value = 0.000518954<\/span><\/p>\n

The above equation tells us about the relationship between weekly return on Dabur India Limited (dependent variable) and weekly return of Nifty50 (independent variable). The positive coefficient indicates a positive relationship between Nifty50 returns and Dabur India Limited returns. This means that when the Nifty50 return increases by 1 unit, the Dabur India Limited return increases by approximately 0.828 units and vice versa. T stat for Beta (\u03b2) is 3.733 and the corresponding p-value is 0.0005189, which is less than 0.05. Hence Beta is statistically significant implying that the weekly return of Nifty does have statistically significant impact on the return on Dabur India Limited at the 5% level. The R-square value is 0.232, which means that only 23.2% of the variation in Dabur India Limited returns is explained by Nifty returns while the remaining 76.8% variation is due to other factors. The F-statistic is 13.93 with a p-value of 0.0005189 which is again less than 0.05 indicating that the overall regression model is statistically significant.<\/span><\/p>\n

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

Since the Beta value (0.828) is Less than 1, the stock moves less than the market. So, it is good for long-term investment.<\/span><\/p>\n

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

Pandey, I. M. (2020). Financial management (12th ed.). Vikas Publishing House Pvt. Ltd.<\/span><\/p>\n

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National Stock Exchange of India Ltd. (2024). Historical market data. Retrieved from https:\/\/www.nseindia.com<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Report Topic: Relationship of Nifty 50 and Dabur India Limited Author: Dhruvil Vikramkumar Jain Introduction: Dabur India Limited is a household name in India, known for bringing the goodness of Ayurveda into everyday life since 1884. From health supplements and personal care to foods and home care, Dabur\u2019s products are trusted by families across generations.… Continue reading Report on Relationship of Nifty 50 and Dabur India Limited<\/span><\/a><\/p>\n","protected":false},"author":139880,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23252","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\/23252","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\/139880"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23252"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23252\/revisions"}],"predecessor-version":[{"id":23253,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23252\/revisions\/23253"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23252"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23252"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23252"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}