{"id":25052,"date":"2026-03-22T22:52:56","date_gmt":"2026-03-22T17:22:56","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=25052"},"modified":"2026-03-22T22:52:56","modified_gmt":"2026-03-22T17:22:56","slug":"relationship-between-nifty-50-and-sula-vineyards-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=25052","title":{"rendered":"RELATIONSHIP BETWEEN NIFTY 50 AND SULA VINEYARDS LIMITED"},"content":{"rendered":"

Author: Shubham<\/span>\u00a0Hirave (66)<\/span><\/p>\n

Introduction:<\/span><\/b><\/b><\/h1>\n

Sula Vineyards Limited is one of India\u2019s leading wine producers and distributors. This report analyzes its stock performance and its sensitivity to the broader market index (Nifty 50).<\/span><\/p>\n

Objective:<\/span><\/b><\/b><\/h1>\n

To calculate the Beta (\u03b2) of Sula Vineyards and observe its significance.<\/span><\/p>\n

Literature Review:<\/span><\/b><\/b><\/h1>\n

Sharpe (1964): In the Capital Asset Pricing Model (CAPM), Beta serves as a measure of a security’s volatility relative to the market as a whole.<\/span>
<\/span>
<\/span>Fama & French (1992): Their research indicates that while Beta is a key risk factor, other variables also influence stock returns.<\/span>
<\/span>
<\/span>Sula Vineyards (2022\u20132023 reports): The company has established a strong leadership position in India\u2019s wine market through premium products, distribution network, and wine tourism.<\/span>
<\/span>
<\/span>Market analysis reports suggest Sula focuses on premiumization and brand positioning, supporting long-term growth.<\/span><\/p>\n

Data Collection:<\/span><\/b><\/b><\/h1>\n

Weekly data collected from NSE. X = Nifty 50 Returns and Y = Sula Vineyards Returns. Y is regressed on X.<\/span><\/p>\n

Data Analysis:<\/span><\/b><\/b><\/h1>\n

Regression Equation:<\/span>
<\/span>Y = -1.49 + 1.67X<\/span>
<\/span><\/p>\n\n\n\n\n\n\n\n\n\n
\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

0.000006<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

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

\n

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

\n

-1.49<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n


<\/span>Interpretation:<\/span>
<\/span>Beta is positive and greater than 1, showing strong direct relationship. If Nifty increases by 1 unit, Sula increases by 1.67 units. R square shows 36% variation explained. P-value <0.05 shows significance.<\/span><\/p>\n

Conclusion:<\/span><\/b><\/b><\/h1>\n

Since Beta >1, Sula Vineyards is a high risk and high return stock. Suitable for short term investment when market is rising.<\/span><\/p>\n

References:<\/span><\/b><\/b><\/h1>\n

Sharpe, W. F. (1964). <\/span>Capital Asset Prices: A Theory of Market Equilibrium under Conditions of Risk<\/span><\/i>. Journal of Finance.<\/span><\/p>\n

Fama, E. F., & French, K. R. (1992). <\/span>The Cross-Section of Expected Stock Returns<\/span><\/i>. Journal of Finance.<\/span><\/p>\n

Sula Vineyards Limited. (2022). <\/span>Draft Red Herring Prospectus (DRHP)<\/span><\/i>.<\/span><\/p>\n

National Stock Exchange of India (NSE India). (2025). Historical data retrieved from official website.<\/span><\/p>\n

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

Author: Shubham\u00a0Hirave (66) Introduction: Sula Vineyards Limited is one of India\u2019s leading wine producers and distributors. This report analyzes its stock performance and its sensitivity to the broader market index (Nifty 50). Objective: To calculate the Beta (\u03b2) of Sula Vineyards and observe its significance. Literature Review: Sharpe (1964): In the Capital Asset Pricing Model… Continue reading RELATIONSHIP BETWEEN NIFTY 50 AND SULA VINEYARDS LIMITED<\/span><\/a><\/p>\n","protected":false},"author":140124,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-25052","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\/25052","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\/140124"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25052"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/25052\/revisions"}],"predecessor-version":[{"id":25053,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/25052\/revisions\/25053"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25052"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25052"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25052"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}