{"id":24954,"date":"2026-03-22T15:47:45","date_gmt":"2026-03-22T10:17:45","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=24954"},"modified":"2026-03-22T15:47:45","modified_gmt":"2026-03-22T10:17:45","slug":"relationship-between-nifty-50-and-vedanta-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=24954","title":{"rendered":"Relationship between Nifty 50 and Vedanta Limited."},"content":{"rendered":"

Title : <\/span><\/b>Relationship between Nifty 50 and Vedanta Limited.<\/span><\/p>\n

Author : <\/span><\/b>Vinayak Sunil Kale (73)<\/span><\/p>\n

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

Vedanta Limited is a leading Indian natural resources company with operations in metals, mining, oil & gas, and power. Headquartered in Mumbai, it contributes significantly to industrial development and export earnings. The company has a strong global presence and diversified business portfolio. Its performance is influenced by global commodity prices and overall economic conditions, making it an important player in India\u2019s corporate sector.<\/span><\/p>\n

Objective : <\/span><\/b>To calculate Beta and observe its significance.<\/span><\/p>\n

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

1) Vedanta Plans Five-Unit Split:<\/span><\/b><\/p>\n

Vedanta Ltd. received NCLT approval to split into five units, aiming to reduce debt and improve efficiency (Mahajan & Soni, 2025). The move will simplify its structure and support independent growth. Shares hit a record high, reflecting strong investor confidence (Mahajan & Soni, 2025).<\/span><\/p>\n

2)Stock Market Driven Beyond GDP:<\/span><\/b><\/p>\n

Phalle et al. (2026) show a weak link between India\u2019s GDP growth and Nifty 50 returns (2008\u20132024). Stock markets were more volatile and driven mainly by expectations and global factors rather than GDP (Phalle et al. 2026).<\/span><\/p>\n

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

Data for Nifty 50 and Vedanta Limited was downloaded from NSE India.com for the period 1\/1\/25 to 31\/12\/2025. The data was manipulated to get Friday closing prices of Nifty 50 and Vedanta Limited. Weekly returns were calculated. Weekly returns of Nifty 50 are named as X and Weekly returns of Vedanta Limited were named as Y. Y were regressed on X.<\/span><\/p>\n

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

Y = 0.3491 + 1.8501 X <\/span><\/p>\n

N = 48, T Stat = (5.6913), R2\u00a0 <\/span><\/sup>= 0.4132, F = 32.3911, P = <\/span>8.38232E-07, <\/span><\/p>\n

Beta = <\/span>1.8501<\/span><\/p>\n

Interpretation :<\/span><\/p>\n

The above equation shows us the relationship between <\/span>Weekly returns of Nifty 50 and Weekly returns of Vedanta Limited. Positive sign means there is direct relationship, meaning if Weekly Returns of\u00a0 Nifty 50 rises, Weekly returns of Vedanta Limited rises and vice-versa. If Weekly returns of Nifty 50 rises by 1-unit Weekly returns of Vedanta Limited will rise by 1.8501 \u00a0<\/span>units and vice versa. Figure in bracket is T stat for Beta (\u03b2) and P value for which is <\/span>8.38232E-07<\/span>. P value which is less than 0.05 meaning coefficient of Weekly returns of Nifty 50 is statistically significant at 5% level. Number of observations are 48. R2 <\/sup>is 0.4132 meaning 41% of Weekly returns of Vedanta Limited is explained by Weekly returns of Nifty 50 and 59% is the error of the variables which are not included in the model. F is 32.3911. P value of which is <\/span>8.38232E-07<\/span> which is less than 0.05 which means overall the model is statistically significant at 5% level. <\/span><\/p>\n

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

Beta <\/span>(\u03b2) > 1, hence invest in Vedanta Limited for short term if nifty rises.<\/span><\/p>\n

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

1) Mahajan, S., & Soni, P. (2025). Vedanta gets court nod to split business, shares hit record. Bloomberg India.<\/span><\/p>\n

2) Phalle, M., Patil, V., Wukkadada, B., Mohite, R. A., & Tike, M. R. (2026). Economic growth and equity performance in India: Evidence from GDP and Nifty 50 dynamics. Advances in Consumer Research, 3(2), 82.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Title : Relationship between Nifty 50 and Vedanta Limited. Author : Vinayak Sunil Kale (73) Introduction : Vedanta Limited is a leading Indian natural resources company with operations in metals, mining, oil & gas, and power. Headquartered in Mumbai, it contributes significantly to industrial development and export earnings. The company has a strong global presence… Continue reading Relationship between Nifty 50 and Vedanta Limited.<\/span><\/a><\/p>\n","protected":false},"author":140136,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-24954","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\/24954","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\/140136"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24954"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24954\/revisions"}],"predecessor-version":[{"id":24955,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24954\/revisions\/24955"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24954"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24954"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24954"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}