Title : Relationship between NIFTY- 50 and GAIL (India)Ltd<\/p>\n
Author : Gayatri Dhananjay Kasar (78)<\/p>\n
Introduction :<\/p>\n
GAIL (India) Limited is a leading energy company in India and a Maharatna Public Sector Undertaking under the Government of India. It was established in 1984 as Gas Authority of India Limited and its headquarters is in New Delhi. The company is mainly involved in natural gas transmission, gas marketing, LPG production, petrochemicals, and pipeline transportation. GAIL owns and operates one of the largest natural gas pipeline networks in India, supplying gas to industries, power plants, and households. It is also listed on the NIFTY 50 and is considered one of the most important government-owned energy companies in the country. GAIL plays a key role in promoting clean energy through natural gas and renewable energy projects in India.<\/p>\n
\u00a0<\/p>\n
Objectives : To calculate beta & observe its significance.<\/p>\n
\u00a0<\/p>\n
Literature Review :<\/p>\n
This article explains that when the NIFTY 50 rises or falls, most large companies including GAIL move in the same direction. However, GAIL is not affected exactly the same way because it belongs to the energy sector, which also depends on oil prices and government policies. Sharma, R., & Kulkarni, A. (2021)<\/p>\n
\u00a0<\/p>\n
This article explains that individual stock returns in India are strongly influenced by movements in the NIFTY 50 index. It shows a significant positive relationship, meaning stocks generally move in the same direction as the market. The study also highlights beta as an important measure of systematic risk. However, company-specific factors can sometimes cause deviations from overall market trends. Patel, S., & Verma, N. (2020)<\/p>\n
Data Collection :<\/p>\n
Data for Nifty 50 or GAIL (India)Ltd was downloaded from National Stock Exchange company for the period 1st January,2025 to 31st December,2025. The data was manipulated to get Friday closing prices of Nifty Fifty and GAIL (India)Ltd<\/p>\n
Weekly returns were calculated.\u00a0<\/p>\n
Weekly returns of nifty fifty are (X) and weekly returns of your company (Y) was regress on (X).<\/p>\n
Data Analysis :<\/p>\n
Y = 0.483 + 1.012X<\/p>\n
N = 48, R\u00b2 = 0.971, F = 1526.56, t Stat = 39.07, P-value \u2248 0.000<\/p>\n
The regression equation describes the relationship between Market Return (X) and the return on GAIL (India) Limited (Y).<\/p>\n
The R Square value is 0.97, which means 97% of the variation in GAIL (India) Market Return explains limited\u2019s return, while the remaining 3% is due to other factors not included in the model.<\/p>\n
The F value is 1526.56 with a Significance F (p-value) of 6.24E-37, which is less than 0.05. Hence, the overall regression model is highly statistically significant at the 5% level.<\/p>\n
The p-value of the coefficient for Market Return is 6.24E-37, which is also less than 0.05. This indicates that Market Return has a statistically significant impact on GAIL (India) Limited\u2019s return. The intercept is 0.48, meaning that if the Market Return is 0, the return on GAIL (India) Limited is expected to be 0.48%. The coefficient (beta) of Market Return is 1.01, which implies that for every 1 unit increase in Market Return, GAIL (India) Limited\u2019s return increases by 1.01 units.This shows that the stock return of GAIL (India) Limited moves almost in the same direction as the market.<\/p>\n
\u00a0<\/p>\n
Conclusion :\u00a0\u00a0<\/p>\n
Since the Beta for GAIL (India) Limited is 1.01, the stock shows almost the same volatility as the market. This means the stock tends to move in the same direction as the market index, and its risk level is close to the market risk. Therefore, this stock can be considered suitable for investors who want returns similar to the market and it can be traded when we expect the Nifty to rise, but it is not extremely risky like high beta stocks. Hence, GAIL (India) Limited can be treated as a market-linked stock suitable for normal trading rather than only short-term speculative trading.<\/p>\n
References :<\/p>\n
Sharma, R., & Kulkarni, A. (2021). Stock Market Volatility and Its Impact on Sectoral Stocks in India. International Journal of Financial Studies, 9(3), 45\u201360<\/p>\n
Patel, S., & Verma, N. (2020). A Study on the Relationship Between Market Index and Individual Stock Returns in India<\/p>\n
. Journal of Emerging Market Finance, 19(2), 112\u2013130<\/p>\n","protected":false},"excerpt":{"rendered":"
Title : Relationship between NIFTY- 50 and GAIL (India)Ltd Author : Gayatri Dhananjay Kasar (78) Introduction : GAIL (India) Limited is a leading energy company in India and a Maharatna Public Sector Undertaking under the Government of India. It was established in 1984 as Gas Authority of India Limited and its headquarters is in New… Continue reading Relationship between NIFTY- 50 and GAIL (India)Ltd<\/span><\/a><\/p>\n","protected":false},"author":140160,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-24900","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\/24900","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\/140160"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24900"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24900\/revisions"}],"predecessor-version":[{"id":24901,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24900\/revisions\/24901"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24900"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24900"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24900"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}