Cost of Equity (Ke) for Nifty 50 companies as per Capital Asset Pricing Model (CAPM) – December 2025
CAPM Formula : Ke (Cost of Equity) = Risk free + Beta x (Market Return – Risk Free Rate)
For the cost of equity for nifty 50 companies, inputs has been taken from various authentic sources
- Risk-Free Rate: 6.55% (10-Year G-Sec Yield, RBI).
Risk Free Rate in India as on 5th Dec 2025 is taken from the RBI website where I have considered 10 Year G-Sec Yield https://www.rbi.org.in/Scripts/BS_NSDPDisplay.aspx?param=4
Screenshot as under : –
2. Market Risk Premium: 7.26% (Market Return – Risk Free Return) by Aswath Damodharan
https://pages.stern.nyu.edu/~adamodar/New_Home_Page/datafile/ctryprem.html
Beta: Taken from Trendlyne.com 1-Year volatility metrics and current market classification (High/Low Beta) – December 2025
Formula: Ke = 6.55% + Beta x 7.26%
Cost of Equity for Nifty 50 Companies (Dec 2025)
| Company | NSE Sector | Beta (β) | Cost of Equity (Ke) |
| Bajaj Auto | Automobile & Auto Comp | 0.85 | 12.72% |
| Eicher Motors | Automobile & Auto Comp | 1 | 13.81% |
| Hero MotoCorp | Automobile & Auto Comp | 0.9 | 13.08% |
| M&M | Automobile & Auto Comp | 1.15 | 14.90% |
| Maruti Suzuki | Automobile & Auto Comp | 0.9 | 13.08% |
| Tata Motors | Automobile & Auto Comp | 1.55 | 17.80% |
| BEL | Capital Goods | 1.35 | 16.35% |
| Larsen & Toubro | Construction | 1.1 | 14.54% |
| Grasim | Construction Materials | 1.05 | 14.17% |
| UltraTech Cement | Construction Materials | 0.95 | 13.45% |
| Asian Paints | Consumer Durables | 0.6 | 10.91% |
| Titan Company | Consumer Durables | 1.15 | 14.90% |
| Trent | Consumer Services | 1.5 | 17.44% |
| Zomato | Consumer Services | 1.65 | 18.53% |
| HUL | FMCG | 0.55 | 10.54% |
| ITC | FMCG | 0.65 | 11.27% |
| Nestle India | FMCG | 0.55 | 10.54% |
| Tata Consumer | FMCG | 0.85 | 12.72% |
| Axis Bank | Financial Services | 1.15 | 14.90% |
| Bajaj Finance | Financial Services | 1.45 | 17.08% |
| Bajaj Finserv | Financial Services | 1.25 | 15.62% |
| HDFC Bank | Financial Services | 0.95 | 13.45% |
| HDFC Life | Financial Services | 0.85 | 12.72% |
| ICICI Bank | Financial Services | 1.05 | 14.17% |
| IndusInd Bank | Financial Services | 1.25 | 15.62% |
| Jio Financial | Financial Services | 1.2 | 15.26% |
| Kotak Bank | Financial Services | 1.05 | 14.17% |
| SBI Life | Financial Services | 0.85 | 12.72% |
| Shriram Finance | Financial Services | 1.35 | 16.35% |
| SBI | Financial Services | 1.3 | 15.99% |
| Apollo Hospitals | Healthcare | 0.9 | 13.08% |
| Cipla | Healthcare | 0.65 | 11.27% |
| Dr. Reddy’s | Healthcare | 0.65 | 11.27% |
| Sun Pharma | Healthcare | 0.65 | 11.27% |
| HCL Tech | Information Technology | 0.9 | 13.08% |
| Infosys | Information Technology | 0.95 | 13.45% |
| TCS | Information Technology | 0.85 | 12.72% |
| Tech Mahindra | Information Technology | 1.1 | 14.54% |
| Wipro | Information Technology | 0.95 | 13.45% |
| Adani Ent. | Metals & Mining | 2.15 | 22.16% |
| Hindalco | Metals & Mining | 1.4 | 16.71% |
| JSW Steel | Metals & Mining | 1.45 | 17.08% |
| Tata Steel | Metals & Mining | 1.45 | 17.08% |
| Coal India | Oil, Gas & Consumable Fuels | 1.05 | 14.17% |
| ONGC | Oil, Gas & Consumable Fuels | 1.05 | 14.17% |
| Reliance Ind. | Oil, Gas & Consumable Fuels | 1.15 | 14.90% |
| NTPC | Power | 0.95 | 13.45% |
| Power Grid | Power | 0.75 | 12.00% |
| Adani Ports | Services | 1.65 | 18.53% |
| Bharti Airtel | Telecommunication | 0.95 | 13.45% |
Low Beta (< 0.8): FMCG stocks like HUL, Nestle, and ITC have the lowest cost of equity (10.5% – 11.3%),
High Beta (> 1.5): Growth and Cyclical stocks like Adani Enterprises, Zomato, and Tata Motors command a much higher cost of equity (17% – 22%)
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