{"id":23479,"date":"2025-12-29T13:12:52","date_gmt":"2025-12-29T07:42:52","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23479"},"modified":"2025-12-29T13:12:52","modified_gmt":"2025-12-29T07:42:52","slug":"the-relationship-of-vedanta-ltd-with-nifty-50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23479","title":{"rendered":"The relationship of Vedanta Ltd. With Nifty 50"},"content":{"rendered":"

Title<\/strong><\/p>\n

Relationship of Vedanta Ltd. with Nifty 50<\/p>\n

Author<\/strong><\/p>\n

Vedant Agrawal<\/p>\n

Introduction<\/strong><\/p>\n

Vedanta Ltd. is a large Indian multinational company operating in the natural resources sector, with major interests in metals, mining, oil & gas, and power generation. The company plays a significant role in India\u2019s industrial and infrastructure development. Its performance is closely linked to global commodity prices and macroeconomic conditions. Being a listed company on Indian stock exchanges, Vedanta Ltd.\u2019s stock movements are often compared with broader market indices such as the Nifty 50.<\/p>\n

Objective<\/strong><\/p>\n

The objective of this study is to calculate the beta of Vedanta Ltd. with respect to the Nifty 50 and examine its statistical significance.<\/p>\n

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

Fama, E. F., & French, K. R. (2004). The capital asset pricing model: Theory and evidence. Journal of Economic Perspectives, 18(3), 25\u201346. https:\/\/doi.org\/10.1257\/0895330042162430<\/p>\n

Bodie, Z., Kane, A., & Marcus, A. J. (2018). Investments (11th ed.). New York, NY: Abesco Publications.<\/p>\n

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

The data for Vedanta Ltd. and Nifty 50 were downloaded from NSE India (www.nseindia.com) for the period 1st December 2024 to 30th November 2025. Friday closing prices were used to compute weekly returns. Weekly returns of Nifty 50 were taken as the independent variable (X), and weekly returns of Vedanta Ltd. were taken as the dependent variable (Y). A simple linear regression model was estimated by regressing Y on X.<\/p>\n

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

The estimated regression equation is:<\/p>\n

Vedanta Return = 0.187 \u2212 0.230 (Nifty Return)<\/p>\n

Where:<\/p>\n

N = 48<\/p>\n

R\u00b2 = 0.0083<\/p>\n

F = 0.3848<\/p>\n

p-value (Significance F) = 0.5381<\/p>\n

The regression coefficient (beta) of Vedanta Ltd. is \u22120.230, indicating a negative relationship between Vedanta\u2019s returns and Nifty 50 returns. This implies that when the Nifty increases by 1 unit, Vedanta\u2019s return decreases by approximately 0.23 units, on average.<\/p>\n

The R\u00b2 value of 0.0083 shows that only 0.83% of the variation in Vedanta\u2019s returns is explained by movements in the Nifty 50, while 99.17% of the variation is due to other factors not included in the model.<\/p>\n

The t-statistic for beta is \u22120.62 with a p-value of 0.538, which is greater than 0.05. Hence, beta is statistically insignificant. The F-statistic (0.3848) and its p-value also indicate that the overall regression model is not statistically significant.<\/p>\n

Conclusion<\/strong><\/p>\n

Since the beta of Vedanta Ltd. is negative, investors should avoid this company, as its returns do not move in line with the Nifty 50 and the relationship is statistically insignificant.<\/p>\n

References<\/strong><\/p>\n

Fama, E. F., & French, K. R. (2004). The capital asset pricing model: Theory and evidence. Journal of Economic Perspectives, 18(3), 25\u201346.<\/p>\n

Bodie, Z., Kane, A., & Marcus, A. J. (2018). Investments (11th ed.). Abesco Publications.<\/p>\n","protected":false},"excerpt":{"rendered":"

Title Relationship of Vedanta Ltd. with Nifty 50 Author Vedant Agrawal Introduction Vedanta Ltd. is a large Indian multinational company operating in the natural resources sector, with major interests in metals, mining, oil & gas, and power generation. The company plays a significant role in India\u2019s industrial and infrastructure development. Its performance is closely linked… Continue reading The relationship of Vedanta Ltd. With Nifty 50<\/span><\/a><\/p>\n","protected":false},"author":140033,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23479","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\/23479","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\/140033"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23479"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23479\/revisions"}],"predecessor-version":[{"id":23480,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23479\/revisions\/23480"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23479"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23479"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23479"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}