{"id":23846,"date":"2026-01-17T12:11:27","date_gmt":"2026-01-17T06:41:27","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23846"},"modified":"2026-01-17T12:11:27","modified_gmt":"2026-01-17T06:41:27","slug":"a-study-of-the-relationship-between-vardhman-textiles-ltd-with-nifty","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23846","title":{"rendered":"A Study of the Relationship between Vardhman Textiles Ltd. With Nifty"},"content":{"rendered":"

Author: Vaishnavi Changdev Raut <\/span><\/p>\n

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Introduction of the Company<\/b><\/p>\n

Vardhman Textiles Ltd. is one of the largest textile manufacturers in India, engaged in the production of yarn, fabrics, sewing threads, and garments. The company caters to both domestic and international markets and is a major contributor to India\u2019s textile export industry. Operating in a cyclical sector, Vardhman Textiles is influenced by economic conditions, raw material prices such as cotton, and global demand patterns.<\/p>\n

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Objective of the Study<\/b><\/p>\n

To calculate Beta and observe its significance.<\/p>\n

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

Sharma and Mehta (2018) found that textile sector stocks in India generally show cyclical behavior and moderate sensitivity to market movements.<\/p>\n

Kapoor (2020) concluded that manufacturing companies are more affected by firm-specific and industry-related factors than by broad market fluctuations. These studies suggest that textile stocks may not always move closely with the market index.<\/p>\n

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

Data Source:<\/b> Stock Market Historical Data
Period of Study:<\/b> Based on the selected dataset
Frequency:<\/b> Weekly<\/p>\n

Variables Used:<\/b><\/p>\n

Independent Variable (X):<\/b> Market Index returns
Dependent Variable (Y):<\/b> Vardhman Textiles Ltd. stock returns<\/p>\n

A linear regression model was applied by regressing Vardhman Textiles Ltd.\u2019s weekly returns on market index weekly returns.<\/p>\n

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

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

Return of Vardhman Textiles Ltd.
= 0.53 \u2212 0.39 \u00d7 Return of Market Index<\/p>\n

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Statistical Results:<\/b><\/p>\n

Number of Observations (N): 35
R Square: 0.010<\/p>\n

Adjusted R Square: \u22120.019<\/p>\n

Beta (\u03b2): \u22120.39<\/p>\n

t-statistic (Beta): \u22120.59<\/p>\n

P-value (Beta): 0.558<\/p>\n

F-statistic: 0.35<\/p>\n

Significance F: 0.558<\/p>\n

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Explanation<\/b><\/p>\n

The beta value of \u22120.39 indicates that Vardhman Textiles Ltd. moves slightly in the opposite direction of the market, but the relationship is very weak. A 1% change in the market index results in an average 0.39% inverse change in Vardhman Textiles Ltd.\u2019s returns.<\/p>\n

The p-value of 0.558 indicates that the beta coefficient is statistically insignificant. Hence, market movements do not meaningfully explain the behavior of Vardhman Textiles Ltd.\u2019s stock.<\/p>\n

The R-square value of 0.010 suggests that only 1% of the variation in stock returns is explained by movements in the market index, while the remaining variation is due to company-specific and industry-related factors such as raw material prices, export demand, and operational efficiency.<\/p>\n

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

The study concludes that Vardhman Textiles Ltd. has a very weak and statistically insignificant relationship with the market index. The company\u2019s stock returns are largely driven by internal business conditions rather than broad market fluctuations. Therefore, Vardhman Textiles Ltd. is more suitable for investors who focus on company fundamentals and sector performance instead of overall market trends.<\/p>\n

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References<\/b><\/p>\n

Sharma, R., & Mehta, P. (2018). Market Sensitivity of Textile Sector Stocks in India.<\/p>\n

Kapoor, S. (2020). Risk Analysis of Manufacturing Sector Companies.<\/p>\n

NSE India \u2013 Market Index Historical Data.<\/p>\n

Annual Reports of Vardhman Textiles Ltd.<\/p>\n

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

Author: Vaishnavi Changdev Raut Introduction of the Company Vardhman Textiles Ltd. is one of the largest textile manufacturers in India, engaged in the production of yarn, fabrics, sewing threads, and garments. The company caters to both domestic and international markets and is a major contributor to India\u2019s textile export industry. Operating in a cyclical sector,… Continue reading A Study of the Relationship between Vardhman Textiles Ltd. With Nifty<\/span><\/a><\/p>\n","protected":false},"author":140087,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23846","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\/23846","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\/140087"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23846"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23846\/revisions"}],"predecessor-version":[{"id":23847,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23846\/revisions\/23847"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23846"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}