{"id":23487,"date":"2025-12-29T13:59:12","date_gmt":"2025-12-29T08:29:12","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23487"},"modified":"2025-12-29T13:59:12","modified_gmt":"2025-12-29T08:29:12","slug":"relationship-of-kalyan-jewelers-india-ltd-with-nifty-50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23487","title":{"rendered":"Relationship of Kalyan Jewelers India Ltd. with NIFTY 50"},"content":{"rendered":"

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

Kalyan Jewellers India Ltd. is one of India\u2019s largest jewellery retail chains with a strong presence across domestic and international markets. The company operates in the organised jewellery segment and caters to diverse customer preferences through gold, diamond, and precious stone jewellery. With an expanding retail footprint and focus on brand trust, Kalyan Jewellers has established itself as a key player in the Indian consumer discretionary sector. Its stock performance is influenced by market movements, consumer demand, and macroeconomic conditions.<\/p>\n

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

The objective of this study is to calculate the beta of Kalyan Jewellers with respect to NIFTY 50 and examine its statistical significance in order to understand the stock\u2019s sensitivity to market movements.<\/p>\n

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\u00a0<\/span>Literature Review:<\/span><\/b><\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Bodie, Kane, and Marcus (2021) explain that beta measures systematic risk and indicates how sensitive a stock\u2019s returns are to market returns. A beta less than one implies lower volatility compared to the market, making the stock suitable for relatively risk-averse investors.<\/p>\n

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–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Brealey, Myers, and Allen (2020) highlight that regression analysis using market returns helps investors evaluate the risk\u2013return trade-off. Stocks with statistically significant beta values provide meaningful insights for portfolio construction and investment decision-making.<\/p>\n

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

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–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The data for Kalyan Jewellers India Ltd. and NIFTY 50 were downloaded from NSEIndia.com for the period 1st December 2024 to 30th November 2025.<\/p>\n

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–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>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 Kalyan Jewellers were taken as the dependent variable (Y).<\/p>\n

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–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>A simple linear regression model was estimated by regressing Y on X.<\/p>\n

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\u00a0<\/span>Data Analysis:<\/span><\/b><\/p>\n

Key Statistics:<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Number of observations (N) = 48<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>R\u00b2 = 0.158<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>F-statistic = 8.63<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Significance F (p-value) = 0.005<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>Beta (Slope coefficient) = 0.913<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>t-statistic for beta = 2.94<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>\u2022\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>p-value for beta = 0.005<\/p>\n

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Interpretation:<\/p>\n

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–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The regression equation shows a positive relationship between NIFTY 50 returns and Kalyan Jewellers\u2019 returns. The beta value of 0.913 indicates that if NIFTY returns increase by 1 unit, the return of Kalyan Jewellers increases by approximately 0.91 units.<\/p>\n

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–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The t-statistic (2.94) and p-value (0.005) indicate that beta is statistically significant at the 1% level, meaning market returns significantly influence the stock\u2019s returns.<\/p>\n

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–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The R\u00b2 value of 0.158 suggests that about 15.8% of the variation in Kalyan Jewellers\u2019 returns is explained by NIFTY 50 movements, while the remaining 84.2% is due to firm-specific and other external factors not included in the model.<\/p>\n

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–\u00a0 \u00a0 \u00a0 \u00a0 <\/span><\/span><\/span>The F-statistic (8.63) with a p-value of 0.005 confirms that the overall regression model is statistically significant.<\/p>\n

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

Since the beta of Kalyan Jewellers is positive but less than 1, the stock is less volatile than the market. Therefore, it is suitable for long-term investment purposes when NIFTY is expected to rise, as it offers relatively stable returns with lower systematic risk.<\/p>\n

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

–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Bodie, Z., Kane, A., & Marcus, A. J. (2021). Investments (11th ed.). McGraw-Hill Education.<\/p>\n

–\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Brealey, R. A., Myers, S. C., & Allen, F. (2020). Principles of corporate finance (13th ed.). McGraw-Hill Education.<\/p>\n","protected":false},"excerpt":{"rendered":"

Introduction: Kalyan Jewellers India Ltd. is one of India\u2019s largest jewellery retail chains with a strong presence across domestic and international markets. The company operates in the organised jewellery segment and caters to diverse customer preferences through gold, diamond, and precious stone jewellery. With an expanding retail footprint and focus on brand trust, Kalyan Jewellers… Continue reading Relationship of Kalyan Jewelers India Ltd. with NIFTY 50<\/span><\/a><\/p>\n","protected":false},"author":140052,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23487","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\/23487","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\/140052"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23487"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23487\/revisions"}],"predecessor-version":[{"id":23488,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23487\/revisions\/23488"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23487"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23487"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23487"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}