{"id":24976,"date":"2026-03-22T16:47:44","date_gmt":"2026-03-22T11:17:44","guid":{"rendered":"https:\/\/www.sachdevajk.in\/?p=24976"},"modified":"2026-03-22T16:47:44","modified_gmt":"2026-03-22T11:17:44","slug":"relation-of-nifty-50-with-rites","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=24976","title":{"rendered":"Relation of Nifty 50 with RITES"},"content":{"rendered":"

Title: Relation of Nifty 50 with RITES <\/span><\/b><\/p>\n

Author<\/span><\/b>: Rohit Pawar- 96<\/b><\/span><\/p>\n

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

This study examines the relationship between the performance of the Nifty Fifty index and the stock returns of RITES. The objective is to analyze how movements in the overall market influence the returns of RITES. For this purpose, secondary data on daily or monthly returns of both Nifty Fifty and RITES is collected and analyzed using regression analysis. The methodology helps estimate the beta value and determine the extent to which market fluctuations affect the company\u2019s stock performance.<\/span><\/p>\n

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Objective:<\/span><\/b> Calculation of Beta and observe its significance<\/span><\/p>\n

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

Strategic Shift: RITES Ltd. has successfully transitioned from a “Nomination-based” model to “Open Competitive Bidding,” with over 50% of its orders now secured through market competition (RITES Annual Report, FY25). This shift has led to an all-time high order book of over \u20b99,000 crore, ensuring strong future revenue visibility (Investor Presentation, Q3-FY26).<\/span><\/p>\n

Operational Framework: The company has implemented “Operation Tattva,” which focuses on a Time, Cost, and Quality (TCQ) framework to enhance project execution and protect consultancy margins (NSE\/BSE Financial Filings, March 2026). <\/span><\/p>\n

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

Data for Nifty 50 and RITES was downloaded by Nseindia.com for the period 1\/1\/2025 to 31\/12\/2025 Friday closing price for Nifty 50 and RITES were calculated. Weekly returns of Nifty 50 were taken as X and Weekly return of RITES were taken as Y. Y was regressed on X.<\/span><\/p>\n

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

Y = 1.1020 + 2.2519X<\/span><\/p>\n

N= 48\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>F= 31.03<\/span><\/p>\n

T-Stat= 5.5778<\/span><\/p>\n

Intercept (alpha): 1.1020<\/span><\/p>\n

Beta =2.2519 (Coefficient for X)<\/span><\/p>\n

R Square: 0.4081 (Meaning 40.8% of the stock’s movement is explained by the market)<\/span><\/p>\n

P-value: 1.35 times 10^ {-6} (Since this is less than 0.05, the result is statistically significant).<\/span><\/p>\n

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The above Equation shows the relationship between Nifty 50 and RITES. Positive means their Direct relation which means if Nifty 50 stock rises RITES stock rise and vice versa. If Nifty 50 stock increases by 1 unit, the RITES stock increases by <\/span>2.2519 <\/span>units. Number of observations is 48. T-stat for beta is 5.5778. The P value is <\/span>1.35 times 10^ {-6} <\/span>less than 0.5 meaning Beta is statistically significant at 5% level. R square is <\/span>0.40 <\/span>meaning 40% of stock return explained by 60% is the error due to the variable not included in model. F is 31.03 and P value is <\/span>1.35 times 10^ {-6} <\/span>\u00a0\u00a0<\/span>less than 0.5 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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Reference:<\/span><\/b><\/p>\n

1.RITES Limited (2025). Integrated Annual Report for FY 2024-25: Dare to Dream. Gurugram: RITES Ltd. Retrieved from rites.com.<\/span><\/p>\n

(This report highlights the shift to competitive bidding and the “Operation Tattva” framework for project efficiency.)<\/span><\/p>\n

\u200b2.RITES Limited (2026). Investor Presentation: Q3 FY26 Performance Highlights. Gurugram: RITES Ltd. Retrieved from rites.com\/InvestorResource.<\/span><\/p>\n

(This source confirms the record order book of \u20b99,262 crore and the “One Order a Day” momentum as of February 2026.)<\/span><\/p>\n

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

Title: Relation of Nifty 50 with RITES Author: Rohit Pawar- 96 \u00a0 Introduction: This study examines the relationship between the performance of the Nifty Fifty index and the stock returns of RITES. The objective is to analyze how movements in the overall market influence the returns of RITES. For this purpose, secondary data on daily… Continue reading Relation of Nifty 50 with RITES<\/span><\/a><\/p>\n","protected":false},"author":140099,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-24976","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\/24976","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\/140099"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24976"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24976\/revisions"}],"predecessor-version":[{"id":24977,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24976\/revisions\/24977"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24976"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24976"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24976"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}