{"id":25081,"date":"2026-03-23T12:11:49","date_gmt":"2026-03-23T06:41:49","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=25081"},"modified":"2026-03-23T12:11:49","modified_gmt":"2026-03-23T06:41:49","slug":"relationship-between-nifty-50-and-srf-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=25081","title":{"rendered":"Relationship between Nifty 50 and SRF Limited"},"content":{"rendered":"

Author:<\/b> Shruti Hanumantha Myatari – 0225030<\/span><\/p>\n

Introduction:<\/span><\/b><\/h2>\n

SRF Limited is a leading Indian multinational company engaged in chemicals, packaging films, and technical textiles. Established in 1970 and headquartered in Gurugram, the company operates across various business segments including specialty chemicals, fluorochemicals, and industrial products.<\/span><\/p>\n

SRF Limited has shown strong growth over the years due to its focus on innovation, global expansion, and diversified product portfolio. Being listed on the NSE, its stock performance is influenced by broader market movements such as the Nifty 50 index. This report analyses SRF Limited\u2019s stock performance and its sensitivity to market fluctuations.<\/span><\/p>\n

Objective:<\/span><\/b><\/h2>\n

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

Literature Review:<\/span><\/b><\/h2>\n

1. Market Sensitivity of Chemical Sector Stocks<\/span><\/b><\/h3>\n

(Sharma et al., 2023) analysed chemical sector companies and found that such firms often exhibit higher volatility compared to traditional sectors due to dependency on global demand, raw material prices, and economic conditions. Their stock prices tend to react strongly to overall market movements.<\/span><\/p>\n

2. Risk-Return Characteristics of Industrial Stocks<\/span><\/b><\/h3>\n

(IJRAR, 2025) studied industrial and specialty chemical companies and concluded that firms like SRF Limited generally have higher beta values, indicating greater sensitivity to market fluctuations. These stocks are more suitable for aggressive investors seeking higher returns with higher risk.<\/span><\/p>\n

Data Collection:<\/span><\/b><\/h2>\n

Data for Nifty 50 and SRF Limited was collected from nseindia.com for the period 1\/1\/2025 to 31\/12\/2025. Friday closing prices were considered for both Nifty 50 and SRF Limited.<\/span><\/p>\n

Weekly returns of Nifty 50 were taken as X (independent variable) and weekly returns of SRF Limited were taken as Y (dependent variable). Regression analysis was applied where Y was regressed on X.<\/span><\/p>\n

Data Analysis:<\/span><\/b><\/h2>\n

Regression Equation:<\/b><\/p>\n

\ud83d\udc49 y = -0.95 + 1.28x<\/b><\/span><\/p>\n\n\n\n\n\n\n\n\n\n
\n

Particular<\/b><\/p>\n<\/td>\n

\n

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

\n

Observations (N)<\/span><\/p>\n<\/td>\n

\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

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

\n

t-stat<\/span><\/p>\n<\/td>\n

\n

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

\n

Beta (B)<\/span><\/p>\n<\/td>\n

\n

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

\u00a0<\/span><\/h2>\n

The above Equation shows the relationship between Nifty 50 and SRF Limited. Positive means their Direct relation which means if Nifty 50 stock rises SRF Limited stock rise and vice versa. If Nifty 50 stock increases by 1 unit, the SRF Limited stock increases by 1.28 unit. Number of observations is 48. t-stat for beta 4.62. The P value is 0.00 less than 0.05 meaning Beta is statistically significant at 5% level. No. of observations are 48. R square is 0.34 meaning 34% is the error due to the variable not included in model. F is 21.30 and P value of which 0.00 less than 0.05 meaning Beta is statistically significant at 5% level.<\/span><\/p>\n

Conclusion:<\/span><\/b><\/h2>\n

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

References:<\/span><\/b><\/h2>\n

Sharma, R., Mehta, A., & Gupta, S. (2023). Analysis of chemical sector stocks in India. Journal of Financial Studies, 14(2), 45\u201352.<\/span><\/p>\n

\u00a0<\/p>\n

IJRAR. (2025). A study on performance evaluation of industrial sector stocks listed on NSE. International Journal of Research and Analytical Reviews, 12(3), 1\u20135.<\/span><\/p>\n

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

Author: Shruti Hanumantha Myatari – 0225030 Introduction: SRF Limited is a leading Indian multinational company engaged in chemicals, packaging films, and technical textiles. Established in 1970 and headquartered in Gurugram, the company operates across various business segments including specialty chemicals, fluorochemicals, and industrial products. SRF Limited has shown strong growth over the years due to… Continue reading Relationship between Nifty 50 and SRF Limited<\/span><\/a><\/p>\n","protected":false},"author":140163,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-25081","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\/25081","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\/140163"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25081"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/25081\/revisions"}],"predecessor-version":[{"id":25082,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/25081\/revisions\/25082"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25081"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}