Beta is a measure of a stock's volatility relative to a market index, such as the Nifty index. A beta of 1 indicates that the stock's price will move in the same direction as the Nifty index. A beta greater than 1 indicates that the stock's price will be more volatile than the Nifty index, while a beta less than 1 indicates that the stock's price will be less volatile than the Nifty index.

For example, if a stock has a beta of 1.5, it is expected to move 1.5 times as much as the Nifty index. If the Nifty index increases by 1%, the stock is expected to increase by 1.5%. Similarly, if the Nifty index decreases by 1%, the stock is expected to decrease by 1.5%.

It's important to note that beta is not a measure of a stock's overall risk or its fundamental value. It only measures the stock's volatility relative to the market index. Therefore, beta should not be the only factor considered when making investment decisions.

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 the formula you have provided is one way to estimate the change in a stock's price based on changes in the Nifty index and the stock's beta. The formula is:

Change in stock price = Change in Nifty index * Stock beta

This formula is based on the idea that a stock's price is influenced by movements in the overall market, as represented by the Nifty index. The stock's beta reflects the sensitivity of the stock's price to changes in the Nifty index.

For example, let's say the Nifty index increases by 1% and the beta of a particular stock is 1.5. According to the formula, the change in the stock price would be:

Change in stock price = 1% * 1.5 = 1.5%

Therefore, we would expect the stock's price to increase by 1.5% if the Nifty index increased by 1%.

It's important to note that this formula is only an estimate, and actual changes in the stock price may be influenced by other factors as well. Additionally, beta is a historical measure of a stock's sensitivity to market movements, and may not necessarily be a reliable indicator of future performance.

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Beta is a measure of a stock's volatility relative to a market index, typically calculated over a period of time using statistical analysis. A stock with a high beta is more volatile than the market index, while a stock with a low beta is less volatile than the market index.

To calculate beta, you can use the following formula:

Beta = Covariance between the stock and the market index / Variance of the market index

The covariance between the stock and the market index measures how the stock's returns are related to the market index's returns. The variance of the market index measures the variability of the market index's returns.

To determine whether a stock has a high or low beta, you can compare its beta value to the beta value of the market index, which is typically set at a value of 1.0. If a stock's beta is greater than 1.0, it is considered to have a high beta, meaning it is more volatile than the market index. If a stock's beta is less than 1.0, it is considered to have a low beta, meaning it is less volatile than the market index.

For example, if a stock has a beta of 1.5, it is considered to have a high beta because it is 50% more volatile than the market index. Conversely, if a stock has a beta of 0.8, it is considered to have a low beta because it is 20% less volatile than the market index.

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