{"id":24994,"date":"2026-03-22T18:22:05","date_gmt":"2026-03-22T12:52:05","guid":{"rendered":"https:\/\/www.sachdevajk.in\/?p=24994"},"modified":"2026-03-22T18:22:05","modified_gmt":"2026-03-22T12:52:05","slug":"relationship-between-nifty-50-and-star-cement-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=24994","title":{"rendered":"Relationship between Nifty 50 and Star Cement Limited"},"content":{"rendered":"

Title : Relationship between Nifty 50 and Star Cement Limited<\/span><\/p>\n

Author<\/span>: <\/span>Sanika Sanjay Jadhav \u2013 68<\/span><\/p>\n

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

Star Cement Ltd<\/span> is a leading cement manufacturing company in India with a strong presence in the northeastern region. The company plays an important role in infrastructure and construction development, benefiting from growing demand in housing and industrial projects.<\/span> Its performance is influenced by both company-specific factors and overall market trends represented by the<\/span> NIFTY 50<\/span>, making it suitable for analyzing the relationship between stock returns and market movements.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

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

\u00a0<\/span><\/p>\n

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

1. Cement Industry Growth<\/span><\/p>\n

A report by CRISIL Ratings highlights that the Indian cement industry is witnessing strong growth driven by increasing demand from infrastructure and housing sectors. The industry is expected to expand capacity significantly due to rising consumption and government investment. However, the sector remains cyclical and is affected by factors such as input costs, pricing pressure, and demand fluctuations.<\/span><\/p>\n

2. Market \u00a0Sensitivity (Beta)<\/span><\/p>\n

According to ICRA, cement companies show moderate to high sensitivity to economic and market conditions, as their performance depends heavily on infrastructure activity and economic cycles. This leads to higher volatility in stock returns, and such companies often exhibit beta values close to or greater than 1, indicating stronger responsiveness to market movements.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

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

Data for Nifty 50 and star Cement Ltd was downloaded by nseindia.com for the period 1\/1\/2025 to 31\/12\/2025. the data was manipulated to get Friday\u2019s \u00a0closing prices of\u00a0 Nifty 50 and Star Cement Ltd. Weekly returns of Nifty 50 were taken as <\/span>x<\/span> and Weekly return of Star Cement Ltd were taken as <\/span>y<\/span>. <\/span>y<\/span> was regressed on <\/span>x<\/span>.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

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

y= -0.18+ 1.22x<\/span><\/p>\n\n\n\n\n\n\n\n\n
\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

0.000041<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

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

\n

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

\n

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

\u00a0<\/span><\/p>\n

The above equation shows the relationship between the <\/span>NIFTY 50 <\/span>and <\/span>Star Cement Ltd<\/span>. <\/span>The positive value of beta indicates a direct relationship, which means that if the NIFTY 50 rises, the stock price of Star Cement Ltd also rises and vice versa. If the NIFTY 50 increases by 1 unit, the Star Cement Ltd stock increases by 1.22 units. The number of observations is 48. The t-statistic for beta is 4.56. The p-value is less than 0.05, which means that beta is statistically significant at the 5% level. The R-square value is 0.31, which means that 31% of the variation in Star Cement Ltd returns is explained by the NIFTY 50 returns, while the remaining 69% is due to other factors not included in the model. The F-value is 20.84, and its p-value is also less than 0.05, indicating that the overall regression model is statistically significant at the 5% level.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

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

\u03b2 > 1, Hence invest for short term if Nifty 50 rise.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

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

1. CRISIL Ratings. (2025). India cement industry: Capacity addition to accelerate over fiscals 2026\u201328. Retrieved from https:\/\/www.crisilratings.com<\/span><\/p>\n

2. ICRA Limited. (2024). Indian cement industry outlook. Retrieved from https:\/\/www.icra.in<\/span><\/p>\n

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

Title : Relationship between Nifty 50 and Star Cement Limited Author: Sanika Sanjay Jadhav \u2013 68 Introduction: Star Cement Ltd is a leading cement manufacturing company in India with a strong presence in the northeastern region. The company plays an important role in infrastructure and construction development, benefiting from growing demand in housing and industrial… Continue reading Relationship between Nifty 50 and Star Cement Limited<\/span><\/a><\/p>\n","protected":false},"author":140153,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-24994","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\/24994","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\/140153"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24994"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24994\/revisions"}],"predecessor-version":[{"id":24995,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24994\/revisions\/24995"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24994"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24994"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24994"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}