{"id":24972,"date":"2026-03-22T16:28:39","date_gmt":"2026-03-22T10:58:39","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=24972"},"modified":"2026-03-22T16:28:39","modified_gmt":"2026-03-22T10:58:39","slug":"relationship-between-nifty-50-and-tech-mahindra-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=24972","title":{"rendered":"Relationship between Nifty 50 and Tech Mahindra Limited"},"content":{"rendered":"

Relationship between Nifty 50 and Tech Mahindra Limited<\/span><\/b><\/p>\n

Author<\/span><\/b>: Tejas Navnath Nilange – 92<\/b><\/span><\/p>\n

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

Tech Mahindra Limited is a prominent Indian multinational provider of digital transformation, consulting, and business re-engineering services. As a key part of the Mahindra Group, the company operates globally with a presence in over 90 countries, leveraging a massive workforce of over 145,000 professionals to serve more than 1,100 clients. Headquartered in Pune, it has established itself as a leader in the communications and enterprise sectors, focusing heavily on next-generation technologies such as 5G, Metaverse, and Generative AI through its “Scale at Speed” strategy. This report analyses Tech Mahindra Ltd\u2019s stock performance and its sensitivity to the broader market index (Nifty 50).<\/span><\/p>\n

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

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

1: Volatility and Sectoral Resilience<\/span><\/b><\/p>\n

(Bangur et al., 2023) this study provides a comparative analysis of the Nifty IT index and the Nifty 50 index, examining how severe market shocks impact volatility persistence. The findings demonstrate that while the broader Nifty 50 index experiences massive volatility spikes during macroeconomic crises, the IT sector exhibits distinct and occasionally more resilient variance patterns, highlighting its unique risk-return profile within the broader market.<\/span><\/p>\n

2: Risk-Return Dynamics of IT Constituents<\/span><\/b><\/p>\n

(IJRAR, 2025) this research evaluates five major IT firms (TCS, Infosys, Wipro, HCL, and Tech Mahindra) against the NSE benchmarks. It confirms that while Tech Mahindra offers competitive returns, its beta of 0.84 indicates a higher sensitivity to market fluctuations compared to “defensive” peers like TCS (beta 0.57), suggesting it is better suited for investors with a higher risk appetite seeking index-linked growth.<\/span><\/p>\n

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

Data for Nifty 50 and Tech Mahindra Ltd was downloaded by nseindia.com for the period 1\/1\/2025 to 31\/12\/2025. Friday closing price for Nifty 50 and Tech Mahindra Ltd were calculated. Weekly returns of Nifty 50 were taken as x<\/b> and Weekly return of Tech Mahindra Ltd were taken as y<\/b>. y<\/b> was regressed on x<\/b>.<\/span><\/p>\n

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

y= -0.27+ 1.40x\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/p>\n\n\n\n\n\n\n\n\n
\n

N<\/span><\/b><\/p>\n<\/td>\n

\n

48<\/span><\/p>\n<\/td>\n<\/tr>\n

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R square<\/span><\/b><\/p>\n<\/td>\n

\n

0.36<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

F<\/span><\/b><\/p>\n<\/td>\n

\n

25.51<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

P- value<\/span><\/b><\/p>\n<\/td>\n

\n

7.42E-06<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

t Stat<\/span><\/b><\/p>\n<\/td>\n

\n

5.05<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

B<\/span><\/b><\/p>\n<\/td>\n

\n

1.40<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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The above Equation shows the relationship between Nifty 50 and Tech Mahindra Ltd. Positive means their Direct relation which means if Nifty 50 stock rises Tech Mahindra Ltd stock rise and vice versa. If Nifty 50 stock increases by 1 unit, the Tech Mahindra Ltd stock increases by 1.40 unit. Number of observations is 48. t-stat for beta 5.05. The P value is 7.42E-06\u00a0 <\/span>less than 0.05 meaning Beta is statistically significant at 5% level. No. of observations are 48. R square is 0.36 meaning 36% of Tech Mahindra Returns is explained by Nifty 50 Returns 64% is the error due to the variable not included in model. F is 25.51 and P value of which 7.42E-06 less than 0.05 meaning Beta is statistically significant at 5% level.<\/span><\/p>\n

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

B>1, Hence invest for short term if Nifty 50 rise.<\/span><\/p>\n

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

Bangur, P., Sharma, S., & Shrivastava, D. (2023). Volatility implications on IT index during pre and post COVID-19 outbreak: evidence from India. International Journal of Technological Learning, Innovation and Development<\/i>, 15<\/i>(2), 207-224. <\/span>https:\/\/doi.org\/10.1504\/ijtlid.2023.135343<\/span><\/a><\/span><\/p>\n

IJRAR. (2025). A study on the performance evaluation of selected IT stocks listed on the NSE<\/i>. International Journal of Research and Analytical Reviews, 12(3), pp. 1-4.<\/span> https:\/\/doi.org\/10.56975\/ijrar.v12i3.IJRAR25C1384<\/span><\/a><\/span><\/p>\n

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Relationship between Nifty 50 and Tech Mahindra Limited Author: Tejas Navnath Nilange – 92 \u00a0 Introduction: Tech Mahindra Limited is a prominent Indian multinational provider of digital transformation, consulting, and business re-engineering services. As a key part of the Mahindra Group, the company operates globally with a presence in over 90 countries, leveraging a massive… Continue reading Relationship between Nifty 50 and Tech Mahindra Limited<\/span><\/a><\/p>\n","protected":false},"author":140171,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-24972","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\/24972","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\/140171"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24972"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24972\/revisions"}],"predecessor-version":[{"id":24973,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24972\/revisions\/24973"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24972"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24972"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24972"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}