Intermodal Dynamics: Analyzing the Relationship Between the Return of Nifty-50 With Return of Spicejet, Indigo and IRCTC

https://doi.org/10.34047/MMR.2024.11210

Abstract

This study explores the intermodal dynamics of transportation by examining the relationship between the returns of Nifty-50, representing Indian equity markets, and those of three major transportation entities: SpiceJet, IndiGo, and IRCTC. Understanding this relationship is crucial for discerning market trends and economic health, given the significance of aviation and railways in India’s infrastructure. Through analytical methods including Augmented Dickey-Fuller test, Regression Analysis, Breusch-Pagan-Godfrey Heteroskedasticity Test, Ramsey RESET Test, and Breusch-Godfrey Serial Correlation LM Test, the study analyzes secondary data from January 2, 2020, to December 28, 2023, sourced from Yahoo Finance. The objective is to provide insights for investors and policymakers, guiding strategic decisions and investment strategies, while uncovering dependencies, risks, and opportunities within the transportation industry. This research addresses the imperative of understanding broader market dynamics and their implications on transportation companies and the economy as a whole.