{"id":23358,"date":"2025-12-24T18:12:26","date_gmt":"2025-12-24T12:42:26","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23358"},"modified":"2025-12-24T18:12:26","modified_gmt":"2025-12-24T12:42:26","slug":"relationship-of-nifty-with-dmart","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23358","title":{"rendered":"Relationship of NIFTY with Dmart"},"content":{"rendered":"

Author:<\/span><\/b> Dhanesh Agrawal<\/b><\/span><\/p>\n

Introduction:<\/span><\/b> Avenue Supermarts Limited, known as Dmart, is a leading Indian retail corporation founded in 2002 by renowned investor Radhakishan Damani. Headquartered in Mumbai, it operates a vast chain of hypermarkets that provide a “one-stop shop” for groceries, home essentials, and apparel.<\/span><\/p>\n

Objective<\/span><\/b>: To calculate beta & observe its significance<\/span><\/p>\n

Literature Review<\/span><\/b>: 1. Operational Efficiency & Business Model<\/b><\/span><\/p>\n

Recent research emphasizes DMart\u2019s unique “Everyday Low Cost” (EDLC) framework as its primary competitive advantage. Senguttuvan (2024) and Jadhav (2025) argue that DMart\u2019s strategy of owning its store properties (nearly 80% of locations) creates a long-term cost barrier against competitors burdened by rising rentals. This is paired with an industry-leading inventory turnover ratio, which Gholap (2024) identifies as the engine behind their profitability. Furthermore, literature by Patel (2023) suggests that DMart\u2019s practice of early vendor payments allows for deeper sourcing discounts, which are then passed to consumers to drive high footfall.

2. Consumer Behavior & Market Position<\/b><\/span><\/p>\n

Studies on DMart\u2019s market success focus heavily on the psychology of value rather than shopping experience. Malik (2025) and Rani (2023) find that middle-income consumers prioritize the “Everyday Low Price” (EDLP) consistency over the “no-frills” or crowded store environments. While IJSREM (2025) highlights high brand loyalty in urban hubs, emerging research by Gupta & Kumar (2024) identifies a growing vulnerability: the rise of Quick Commerce. The literature suggests that while DMart dominates physical retail, its slower digital transition remains a critical risk factor as consumer preferences shift toward instant delivery.<\/span><\/p>\n

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

Data Collection<\/span><\/b>: Data for NIFTY 50 & Dmart was demonstrated from NSEindia.com for the period 1-12-2024 to 30-11-25. Then Friday closing price was calculated. Then weekly returns of NIFTY & Dmart were calculated. <\/span><\/p>\n

Weekly return of NIFTY was taken as X<\/span><\/p>\n

Weekly return of Dmart was taken as Y<\/span><\/p>\n

Y was regressed on X<\/span><\/p>\n

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

Equation<\/span><\/b>: Dmart = 0.20098 \u2013 (-0.03175) <\/b>Nifty50<\/span><\/p>\n

The above equation shows the relationship between the Nifty 50 (X) and Dmart share price (Y). The negative sign means inverse relationship which means if one\u2019s share price rises other\u2019s share price will fall and vice versa. If share price of NIFTY 50 rises by 1 unit, then share price of Dmart will fall by 0.03175 unit. The p value for share price NIFTY 50 is 0.930571 and more than 0.01 which means that there is no statistically reliable relationship between the weekly returns of NIFTY 50 (X) and Dmart (Y) for the period analysed. Number of observations are 48, R^2 is 0.000167, which means 0.0167% of the variances of share price of Dmart are explained by share price of NIFTY 50. 99.9833% is the error which is due to the variables which are not in the models. F=0.007675 and the p value for which is 0.930571, which is more than 0.01, which means that overall the model is not statistically significant at 1% level.<\/span><\/p>\n

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

Conclusion: <\/span><\/b>Dmart\u2019s beta is -0.03175, which indicates it is a negative value. It means that Dmart moves in the opposite direction of NIFTY 50. As it\u2019s beta is negative, try to avoid buying Dmart as of now.<\/p>\n

References:
1. <\/b>Avenue Supermarts Ltd. (2024). Annual Report 2023-24: Good Products, Great Value<\/i>. Corporate Filing. <\/span>Official link<\/span><\/a>. (Crucial for raw data on the 377+ store expansion and financial ratios).
<\/i>
2. <\/b>IJSREM. (2025). Consumer Buying Behaviour in the D-Mart: Factors influencing preference and purchase decisions<\/i>. International Journal of Scientific Research in Engineering and Management. <\/span>Source<\/span><\/a>. (Focuses on the Greater Noida region and the impact of price levels on customer loyalty). <\/i>

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

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

Author: Dhanesh Agrawal Introduction: Avenue Supermarts Limited, known as Dmart, is a leading Indian retail corporation founded in 2002 by renowned investor Radhakishan Damani. Headquartered in Mumbai, it operates a vast chain of hypermarkets that provide a “one-stop shop” for groceries, home essentials, and apparel. Objective: To calculate beta & observe its significance Literature Review:… Continue reading Relationship of NIFTY with Dmart<\/span><\/a><\/p>\n","protected":false},"author":140016,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23358","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\/23358","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\/140016"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23358"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23358\/revisions"}],"predecessor-version":[{"id":23359,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23358\/revisions\/23359"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23358"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}