{"id":25079,"date":"2026-03-23T02:35:18","date_gmt":"2026-03-22T21:05:18","guid":{"rendered":"https:\/\/www.sachdevajk.in\/?p=25079"},"modified":"2026-03-23T02:35:18","modified_gmt":"2026-03-22T21:05:18","slug":"relationship-between-nifty-50-and-godrej-consumer-products-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=25079","title":{"rendered":"Relationship between Nifty 50 and Godrej Consumer Products Limited"},"content":{"rendered":"

Author: Ganesh Gaikwad<\/span>
<\/span><\/p>\n

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

Godrej Consumer Products Limited is one of the leading fast-moving consumer goods (FMCG) companies in India, engaged in the production and distribution of personal care, home care, and hair care products. The company has a strong presence in both domestic and international markets and is known for its consistent growth and brand value. Being part of the FMCG sector, the company benefits from steady demand as its products are essential in nature. The NIFTY 50 represents the overall performance of the Indian stock market and includes major companies across different sectors. This report analyzes the relationship between the stock returns of Godrej Consumer Products Limited and the Nifty 50 index.<\/span><\/p>\n

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

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

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

1: Market Risk and Volatility\u00a0<\/span><\/p>\n

(Sharpe, 1964)<\/span>\u00a0t<\/span>his study explains that Beta is a key measure in the Capital Asset Pricing Model (CAPM) used to determine the systematic risk of a stock relative to the market. It highlights that stocks with higher Beta values are more sensitive to market movements, while lower Beta stocks provide more stability.<\/span>
<\/span>
<\/span>2: Risk-Return Relationship\u00a0<\/span><\/p>\n

(Fama & French, 1992)<\/span>\u00a0t<\/span>his research shows that while Beta is an important factor in explaining stock returns, other variables such as company fundamentals and external economic conditions also play a role. It emphasizes that Beta alone cannot fully explain stock performance but remains a critical indicator of market sensitivity.<\/span>
<\/span>
<\/span>These studies support the use of Beta in analyzing the relationship between individual stocks and the overall market index.<\/span><\/p>\n

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

Data for NIFTY 50 and Godrej Consumer Products Limited was downloaded from the National Stock Exchange of India for the period 1 January 2025 to 31 December 2025. Friday closing prices were selected. Weekly returns of Nifty 50 were taken as X and weekly returns of the company were taken as Y. Regression analysis was performed where Y was regressed on X.<\/span><\/p>\n

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

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

y=\u00a0<\/span>0.08+0.74x<\/span><\/p>\n\n\n\n\n\n\n\n\n
\n
\n

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

\n
\n

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

\n
\n

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

\n
\n

0.16<\/span><\/p>\n<\/div>\n<\/td>\n<\/tr>\n

\n
\n

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

\n
\n

8.46<\/span><\/p>\n<\/div>\n<\/td>\n<\/tr>\n

\n
\n

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

\n
\n

0.01<\/span><\/p>\n<\/div>\n<\/td>\n<\/tr>\n

\n
\n

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

\n
\n

2.91<\/span><\/p>\n<\/div>\n<\/td>\n<\/tr>\n

\n
\n

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

\n
\n

0.74<\/span><\/p>\n<\/div>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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

The above Equation shows the relationship between Nifty 50 and\u00a0<\/span>Godrej Consumer Products Limited<\/span>. Positive means their Direct relation which means if Nifty 50 stock rises\u00a0<\/span>Godrej Consumer Products Limited<\/span>\u00a0stock rise and vice versa. If Nifty 50 stock increases by 1 unit, the\u00a0<\/span>Godrej Consumer Products Limited<\/span>\u00a0stock increases by\u00a0<\/span>0<\/span>.<\/span>74<\/span>\u00a0unit. Number of observations is 48. t-stat for beta\u00a0<\/span>2.91.<\/span>\u00a0The P value is\u00a0<\/span>0.01<\/span>\u00a0\u00a0less than 0.05 meaning Beta is statistically significant at 5% level. No. of observations are 48. R square is 0.<\/span>1<\/span>6 meaning\u00a0<\/span>1<\/span>6% of\u00a0<\/span>Godrej Consumer Products Limited<\/span>\u00a0Returns is explained by Nifty 50 Returns\u00a0<\/span>8<\/span>4% is the error due to the variable not included in model. F is\u00a0<\/span>08<\/span>.<\/span>46<\/span>\u00a0and P value of which\u00a0<\/span>0.01<\/span>\u00a0less than 0.05 meaning Beta is statistically significant at 5% level.<\/span><\/p>\n

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

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

B < 1, hence invest for<\/span>\u00a0long term<\/span>.<\/span><\/p>\n

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

Sharpe, W. F. (1964). Capital asset prices: A theory of market equilibrium under conditions of risk. Journal of Finance.<\/span>
<\/span>
<\/span>Fama, E. F., & French, K. R. (1992). The cross-section of expected stock returns. Journal of Finance.<\/span>
<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Author: Ganesh Gaikwad Introduction: Godrej Consumer Products Limited is one of the leading fast-moving consumer goods (FMCG) companies in India, engaged in the production and distribution of personal care, home care, and hair care products. The company has a strong presence in both domestic and international markets and is known for its consistent growth and… Continue reading Relationship between Nifty 50 and Godrej Consumer Products Limited<\/span><\/a><\/p>\n","protected":false},"author":140166,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-25079","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\/25079","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\/140166"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25079"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/25079\/revisions"}],"predecessor-version":[{"id":25080,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/25079\/revisions\/25080"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25079"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25079"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25079"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}