{"id":25098,"date":"2026-03-26T17:20:21","date_gmt":"2026-03-26T11:50:21","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=25098"},"modified":"2026-03-26T17:20:21","modified_gmt":"2026-03-26T11:50:21","slug":"relationship-between-nifty-50-and-aarti-industries-limited-ail","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=25098","title":{"rendered":"RELATIONSHIP BETWEEN NIFTY 50 AND Aarti Industries Limited (AIL)"},"content":{"rendered":"

Author: Ankit Nagarale ,32<\/span><\/p>\n

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

Aarti Industries Limited (AIL) is a leading speciality chemical manufacturer with 40 years of chemistry expertise, with sustainable, people-first operations\/approach. \u00a0<\/span>Aarti Industries Limited (AIL)combine process chemistry expertise with scale-up engineering to deliver advanced intermediates for a wide range of applications, including agrochemicals, pharmaceuticals, polymers, dyes, and more.<\/p>\n

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

To calculate the Beta (\u03b2) of <\/span>Aarti Industries Limited (AIL) and observe its significance.<\/span><\/p>\n

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

Fama & French (1992): Their research indicates that while Beta is a key risk factor, other variables also influence stock returns.

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

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

Weekly data collected from NSE. X = Nifty 50 Returns and Y = <\/span>Aarti Industries Limited (AIL). Y is regressed on X.<\/span><\/p>\n

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

Regression Equation:
Y = 0.2914-0.2403X

<\/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

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

\n

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

\n

0.2744<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

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

\n

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

\n

-0.29<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

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


Interpretation:
Beta is negative and less than 1, showing weak \u00a0<\/span>relationship with Nifty 50 . If Nifty increases by 1 unit, <\/span>Aarti Industries Limited (AIL) increases by 0.29 units. R square shows 0.6% variation explained. P-value >0.07 shows more \u00a0<\/span>significance.\u00a0 <\/span>R Square is very small suggest that almost 94% of things are not explained by market<\/span><\/p>\n

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

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

Since Beta >0.5, <\/span>Aarti Industries Limited (AIL) Limited is a unstable stock . Not suitable for investment ignore this company<\/span><\/p>\n

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

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

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

National Stock Exchange of India (NSE India). (2025). Historical data retrieved from official website.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Author: Ankit Nagarale ,32 Introduction: Aarti Industries Limited (AIL) is a leading speciality chemical manufacturer with 40 years of chemistry expertise, with sustainable, people-first operations\/approach. \u00a0Aarti Industries Limited (AIL)combine process chemistry expertise with scale-up engineering to deliver advanced intermediates for a wide range of applications, including agrochemicals, pharmaceuticals, polymers, dyes, and more. Objective: To calculate… Continue reading RELATIONSHIP BETWEEN NIFTY 50 AND Aarti Industries Limited (AIL)<\/span><\/a><\/p>\n","protected":false},"author":140100,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-25098","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\/25098","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\/140100"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=25098"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/25098\/revisions"}],"predecessor-version":[{"id":25099,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/25098\/revisions\/25099"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=25098"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=25098"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=25098"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}