{"id":25069,"date":"2026-03-22T23:22:35","date_gmt":"2026-03-22T17:52:35","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=25069"},"modified":"2026-03-22T23:22:35","modified_gmt":"2026-03-22T17:52:35","slug":"relationship-between-market-returns-nifty-50-and-stock-returns-of-rail-vikas-nigam-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=25069","title":{"rendered":"Relationship between Market Returns (NIFTY 50) and Stock Returns of Rail Vikas Nigam Limited"},"content":{"rendered":"
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Title:\u00a0<\/span><\/p>\n<\/div>\n

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A Study on Relationship between Market Returns (NIFTY 50) and Stock Returns of Rail Vikas Nigam Limited and its Significance<\/span><\/p>\n<\/div>\n

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Author:\u00a0<\/span><\/p>\n<\/div>\n

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Rehan Siddiqui (53)<\/span><\/p>\n<\/div>\n

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Introduction:\u00a0<\/span><\/p>\n<\/div>\n

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Rail Vikas Nigam Limited<\/span>\u00a0is a public sector enterprise under the Ministry of Railways, Government of India. It\u00a0<\/span>is responsible for<\/span>\u00a0implementing railway infrastructure projects such as track doubling, electrification, and new railway lines. The company plays\u00a0<\/span>an important role<\/span>\u00a0in the development of the railway network in India. Being listed on the NSE, its stock performance reflects both company growth and market conditions.<\/span><\/span><\/p>\n<\/div>\n

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Objective:<\/span><\/p>\n<\/div>\n

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\u00a0Calculation of Beta and\u00a0<\/span>observe<\/span>\u00a0its Significance<\/span><\/span><\/p>\n<\/div>\n

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

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According to\u00a0<\/span>William F. Sharpe<\/span>, beta is a measure of systematic risk that\u00a0<\/span>indicates<\/span>\u00a0how a stock responds to market movements. It is widely used in financial analysis and investment decisions.<\/span><\/span><\/p>\n<\/div>\n

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As\u00a0<\/span>stated<\/span>\u00a0by\u00a0<\/span><\/span>Eugene F. Fama<\/span>,<\/span><\/span>\u00a0stock returns are influenced by market factors, and regression analysis helps in understanding the relationship between individual stock returns and market returns.<\/span><\/p>\n<\/div>\n

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

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Data for\u00a0<\/span>Nifty 50\u00a0<\/span>and my company<\/span>\u00a0\u201cRail Vikas Nigam Limited\u201d<\/span><\/span>\u00a0<\/span>was downloaded from NSE India.com for the period 1-1-2025 to 31-12-2025\u00a0<\/span>Friday<\/span>\u00a0closing price<\/span>s<\/span>\u00a0for\u00a0<\/span>Nifty 50<\/span>\u00a0and my company was segregated weekly and my company were calculated weekly returns of\u00a0<\/span>Nifty 50<\/span>\u00a0was taken as\u00a0<\/span>X<\/span>\u00a0and weekly returns of my company was taken\u00a0<\/span>Y<\/span>. Y was taken as\u00a0<\/span>regress<\/span>.<\/span><\/span><\/p>\n<\/div>\n

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

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Regression Equation<\/span><\/span><\/p>\n<\/div>\n

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N = 48, F = 60.45,<\/span>\u00a0<\/span>p = 0.00, x = 0.7714, R\u00b2 = 0.57, Y = 0.0013 + 1.18X<\/span><\/p>\n<\/div>\n

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

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The above equation shows the relationship between market return and company return. The positive sign of beta\u00a0<\/span>indicates<\/span>\u00a0that there is a direct relationship between NIFTY and the stock of\u00a0<\/span>Rail Vikas Nigam Limited<\/span>, which means if market rises the company return also rises and vice versa.<\/span><\/span><\/p>\n<\/div>\n

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If NIFTY return increases by 1 unit, the return of the company will increase by 1.18 units.\u00a0<\/span>Number<\/span>\u00a0of observations\u00a0<\/span>are<\/span>\u00a052. The value of \u03b2 (Beta) is 1.18.<\/span><\/span><\/p>\n<\/div>\n

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The p-value is less than\u00a0<\/span>0.05<\/span>\u00a0which means beta is statistically significant at 5% level. R\u00b2 is approximately 0.62 which means 62% of variation in company return is explained by market return and 38% is due to other factors not included in the model.<\/span><\/span><\/p>\n<\/div>\n

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Thus, the model is significant and there is a strong positive relationship between NIFTY and the company\u2019s returns.<\/span><\/p>\n<\/div>\n

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

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Since beta is more than 1, it means the stock is suitable for\u00a0<\/span>short term investment when NIFTY rises<\/span>.<\/span><\/span><\/p>\n<\/div>\n

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

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Sharpe, W. F. (1964).\u00a0<\/span>Capital Asset Pricing Model<\/span>. Journal of Finance.<\/span><\/p>\n<\/div>\n

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Fama, E. F. (1970).\u00a0<\/span>Efficient Market Hypothesis<\/span>. Journal of Finance.<\/span><\/p>\n<\/div>\n

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National Stock Exchange of India \u2013 Historical Market Data.<\/span><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Title:\u00a0 A Study on Relationship between Market Returns (NIFTY 50) and Stock Returns of Rail Vikas Nigam Limited and its Significance Author:\u00a0 Rehan Siddiqui (53) Introduction:\u00a0 Rail Vikas Nigam Limited\u00a0is a public sector enterprise under the Ministry of Railways, Government of India. It\u00a0is responsible for\u00a0implementing railway infrastructure projects such as track doubling, electrification, and new… Continue reading Relationship between Market Returns (NIFTY 50) and Stock Returns of Rail Vikas Nigam Limited<\/span><\/a><\/p>\n","protected":false},"author":140123,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-25069","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\/25069","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\/140123"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25069"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/25069\/revisions"}],"predecessor-version":[{"id":25070,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/25069\/revisions\/25070"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25069"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}