{"id":23824,"date":"2026-01-15T19:06:05","date_gmt":"2026-01-15T13:36:05","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23824"},"modified":"2026-01-15T19:06:05","modified_gmt":"2026-01-15T13:36:05","slug":"relationship-of-nifty-with-ambuja-cements-limited-2","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23824","title":{"rendered":"RELATIONSHIP OF NIFTY WITH AMBUJA CEMENTS LIMITED"},"content":{"rendered":"

AUTHOR – Akash Singh<\/span><\/p>\n

Introduction<\/span><\/h2>\n

Ambuja Cements Limited is one of India\u2019s leading cement manufacturing companies, with a strong presence in the domestic construction and infrastructure sector. The cement industry is closely linked to economic growth, infrastructure development, and real estate activity. Due to its cyclical nature, the stock performance of Ambuja Cements is influenced by overall market movements. Studying its relationship with the Nifty 50 helps in understanding its systematic risk and market sensitivity.<\/span><\/p>\n

Objective<\/span><\/h2>\n

To calculate the Beta of Ambuja Cements Limited with respect to Nifty 50 and examine its statistical significance in order to understand the systematic risk associated with Ambuja Cements shares.<\/span><\/p>\n

Literature Review<\/span><\/h2>\n

NIFTY 50 Shariah Scrips \u2013 A Beta Analysis<\/p>\n

Existing literature on beta analysis highlights beta as a key measure of systematic risk. Research on Shariah-compliant and large-cap stocks shows that despite financial and sectoral screening, beta values vary significantly across industries. These studies confirm that beta remains a reliable indicator of market-related risk.<\/p>\n

Financial Performance Analysis of Indian Cement Companies<\/p>\n

Previous studies on Indian cement companies emphasize the role of infrastructure demand, capacity utilization, energy costs, and pricing power in determining stock performance. Cement companies generally exhibit moderate sensitivity to market movements, making beta analysis useful for evaluating their investment risk profile.<\/span><\/p>\n

Data Collection<\/span><\/h2>\n

Historical data for Ambuja Cements Limited and Nifty 50 was collected from www.nseindia.com for the period 01-12-2024 to 30-11-2025.<\/p>\n

Friday closing prices were considered.
Weekly returns were calculated.
Nifty 50 weekly returns were treated as the independent variable (X).
Ambuja Cements Limited weekly returns were treated as the dependent variable (Y).
A simple linear regression was conducted by regressing Y on X.<\/span><\/p>\n

Data Analysis<\/span><\/h2>\n

Regression Equation<\/p>\n

Ambuja Cements Limited (Y) = 0.92 \u00d7 Nifty 50 (X) \u2013 0.08<\/p>\n

Regression Statistics<\/p>\n

Beta (Slope coefficient) = 0.92
Intercept = \u20130.08
t-Statistic (Beta) = 4.86
p-value (Beta) = 0.00001
Number of observations (N) = 48
R\u00b2 = 0.33
F-statistic = 23.62<\/span><\/p>\n

Interpretation<\/span><\/h2>\n

The regression results indicate a positive and statistically significant relationship between the weekly returns of Nifty 50 and Ambuja Cements Limited.<\/p>\n

A 1% increase in Nifty 50 returns leads to an approximate 0.92% increase in Ambuja Cements\u2019 weekly returns, suggesting that the stock moves slightly less than the overall market.<\/p>\n

The t-statistic of 4.86 and a p-value well below 0.01 confirm that the beta coefficient is statistically significant.<\/p>\n

The R\u00b2 value of 0.33 indicates that 33% of the variation in Ambuja Cements\u2019 returns is explained by market movements, while the remaining variation is influenced by company-specific factors such as cement demand, input costs, capacity utilization, and infrastructure spending.<\/p>\n

The F-statistic confirms that the overall regression model is statistically significant.<\/span><\/p>\n

Conclusion<\/span><\/h2>\n

Ambuja Cements Limited has a beta of 0.92, which is slightly less than 1, indicating that the stock is less volatile than the overall market.<\/p>\n

This implies that:
Ambuja Cements tends to be relatively stable during market fluctuations.
It may offer moderate returns with comparatively lower risk than high-beta stocks.
The stock is suitable for conservative to moderate risk investors.
Ambuja Cements is appropriate for long-term investment strategies aligned with steady infrastructure growth.<\/span><\/p>\n

References<\/span><\/h2>\n

Patel, A. and Shah, M. (2018) \u2018NIFTY 50 Shariah scrips \u2013 a beta analysis\u2019, GAP Bodhitaru: A Global Journal of Humanities, 1(2), pp. 36\u201346.<\/p>\n

Sumathi, N. and Jothi, K. (2016) \u2018A study on financial performance of cement companies in India\u2019, International Journal for Research in Applied Science and Engineering Technology, 4(3), pp. 147\u2013150.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

AUTHOR – Akash Singh Introduction Ambuja Cements Limited is one of India\u2019s leading cement manufacturing companies, with a strong presence in the domestic construction and infrastructure sector. The cement industry is closely linked to economic growth, infrastructure development, and real estate activity. Due to its cyclical nature, the stock performance of Ambuja Cements is influenced… Continue reading RELATIONSHIP OF NIFTY WITH AMBUJA CEMENTS LIMITED<\/span><\/a><\/p>\n","protected":false},"author":140086,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23824","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\/23824","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\/140086"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23824"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23824\/revisions"}],"predecessor-version":[{"id":23825,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23824\/revisions\/23825"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23824"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23824"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23824"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}