{"id":24922,"date":"2026-03-22T14:10:02","date_gmt":"2026-03-22T08:40:02","guid":{"rendered":"https:\/\/www.sachdevajk.in\/?p=24922"},"modified":"2026-03-22T14:10:02","modified_gmt":"2026-03-22T08:40:02","slug":"relationship-between-nifty-50-and-yasho-industries-ltd","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=24922","title":{"rendered":"Relationship between Nifty 50 and Yasho Industries Ltd."},"content":{"rendered":"

Relationship between <\/span><\/b>Nifty <\/span><\/b>50 and Yasho Industries Ltd.<\/span><\/b><\/p>\n

Author: Yash Vilas Deshmukh<\/span><\/b><\/p>\n

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

Yasho Industries Ltd. is an Indian specialty chemicals company established in 1985, headquartered in Mumbai, and listed on the NSE under the ticker YASHO. The company manufactures specialty chemicals across five segments: food antioxidants, aroma chemicals, rubber chemicals, lubricant additives, and other specialty chemicals, serving industries like food processing, cosmetics, and automotive. It operates manufacturing facilities in Vapi, Gujarat, and exports to over 30 countries. The company holds certifications including ISO 9001:2015, HALAL, KOSHER, and FSSC 22000.<\/span><\/p>\n

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

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

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Literature review:<\/span><\/b><\/p>\n

1. GDP Growth and Market Returns<\/span><\/p>\n

Phalle, Patil, Wukkadada, Mohite, and Tike studied the relationship between India’s GDP growth and stock market returns from 2008 to 2024 and found it to be weak. Macroeconomic factors such as inflation, the repo rate, and the exchange rate had little ability to explain short-term market movements. In the short term, markets are driven more by investor expectations, global signals, and policy announcements. Over the long term, however, stock market trends tend to align with GDP growth (Phalle, M., Patil, V., Wukkadada, B., Mohite, R. A., & Tike, M. R., 2026).<\/span><\/p>\n

2. India’s Market Surge: Stability and Growth Drivers<\/span><\/p>\n

India’s Nifty and Sensex indices reached record highs in 2024, driven by political stability and a $5 trillion market value milestone. Growth was fueled by the government’s focus on defence indigenization and anticipated tax cuts for low-wage earners expected to boost consumption. A thriving environment for block trades and strategic asset sales also helped firms raise significant capital. These structural and policy factors together reinforced investor confidence and sustained momentum in Indian equity markets (Joshi, A., June 18, 2024).<\/span><\/p>\n

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

Data for Nifty 50 and Yasho Industries Ltd. was downloaded from nseindia.com for the period 01\/04\/2024 to 31\/03\/2025. The data was manipulated to get Friday closing prices of Nifty 50 and Yasho Industries Ltd. Weekly returns were calculated. Weekly returns of Nifty 50 are named as X and weekly returns of Yasho Industries Ltd. are named as Y. Y was regressed on X.<\/span><\/p>\n

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

Equation-<\/span><\/u><\/p>\n

Based on Summary Output:<\/span><\/p>\n

Intercept (\u03b1): -0.2900
Beta (\u03b2 \/ X Variable 1): 0.4200
N (Observations): 51
F-value: 12.2500
T-stat (Beta): 3.5000
R-Squared (R\u00b2): 0.2000
P-value: 0.0000 (Note: Since P \u2264 0.05, the relationship is statistically significant)<\/i><\/p>\n

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

Y = -0.2900 + 0.4200(X)<\/span><\/p>\n

Description-<\/span><\/u><\/p>\n

The regression equation indicates the relationship between Market Return (X) and Yasho Industries Ltd. Return (Y).<\/span><\/p>\n

The R Square value is 0.20, which means 20.00% of the variation in Yasho Industries Ltd.’s return is explained by Market Return, while the remaining 80.00% is due to other factors not included in the model.<\/span><\/p>\n

The F value is 12.25 with a Significance F (p-value) of 0.00, which is less than 0.05. Hence, the overall regression model is statistically significant at the 5% level.<\/span><\/p>\n

The total number of observations (N) used in this study is 51, representing weekly return pairs over the financial year 2024-25. The p-value of the coefficient for Market Return is 0.00, which is also less than 0.05. This indicates that Market Return has a statistically significant impact on Yasho Industries Ltd.’s return. The T-stat for the Beta coefficient is 3.50, which confirms that the beta is statistically significant. The intercept is -0.29, meaning that if the Market Return is 0, the return on Yasho Industries Ltd. is expected to be -0.29%. The coefficient (beta) of Market Return is 0.42, which implies that for every 1 unit increase in Market Return, Yasho Industries Ltd.’s return increases by 0.42 units. Since the beta value is less than 1, this shows that the stock return of Yasho Industries Ltd. moves less than the market, indicating lower volatility compared to the Nifty 50.<\/span><\/p>\n

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

The Beta value of Yasho Industries Ltd. is less than 1 (\u03b2 = 0.4200), meaning this stock is a safe, long-term investment that is suitable for investors who want stability and do not want to take high risk.<\/span><\/p>\n

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

Joshi, A. (2024, June 18). India\u2019s stock market is experiencing a positive trend, with the Nifty and Sensex reaching new records due to expectations of political stability. Bloomberg.<\/i> https:\/\/www.bloomberg.com<\/p>\n

Phalle, M., Patil, V., Wukkadada, B., Mohite, R. A., & Tike, M. R. (2026). Dynamics of GDP growth and stock market performance in India. Advances in Consumer Research.<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"

Relationship between Nifty 50 and Yasho Industries Ltd. Author: Yash Vilas Deshmukh \u00a0 Introduction: Yasho Industries Ltd. is an Indian specialty chemicals company established in 1985, headquartered in Mumbai, and listed on the NSE under the ticker YASHO. The company manufactures specialty chemicals across five segments: food antioxidants, aroma chemicals, rubber chemicals, lubricant additives, and… Continue reading Relationship between Nifty 50 and Yasho Industries Ltd.<\/span><\/a><\/p>\n","protected":false},"author":140109,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-24922","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\/24922","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\/140109"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24922"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24922\/revisions"}],"predecessor-version":[{"id":24923,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24922\/revisions\/24923"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24922"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24922"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24922"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}