Relationship of Sun TV Network Limited and Nifty Fifty

Sarita Panwar

Objective: Find the relationship between Sun Tv Network Limited and nifty or to calculate beta of Sun Tv Network Limited company and see its significance.

Literature Review 1: Sun TV Network Ltd., incorporated in the year 1985, is a Mid Cap company (having a market cap of Rs 20,529.84 Crore) operating in Media & Entertainment sector. Sun TV Network Ltd. Key Products/Revenue Segments include Subscription Income, Income from Advertisement, Other Services, Income from Content Trading and Income from Films Production & Distribution. As on 30-06-2021, the company has a total of 39.41 Crore shares outstanding.

Literature Review 2: Sun Network delivers a steady flow of highly popular programs and a dominant share of audience viewership which has given the network tremendous pricing power vis-a-vis competitors. The presence of Sun Network across genres like general entertainment, movies, music, news, kids, action, life and with a dominant market share in the four southern states of India ensures continued and sustained viewership and prominent role in the Media and Entertainment Industry. the impact of the pandemic on its financial results for the financial year 2020-21 based on the internal and external information is highly dependent on the circumstances and developments, as they evolve in the subsequent periods. It is expected that the revenue for the Company arising from the increased DTH subscriber base in South India would maintain a positive momentum in the coming years.

Data Collection: Closing Friday price were calculated by:
The Data is been collected from from products (Indices & Equity- Historical Data).
After that open excel and only take Date and Closing Price Column and delete the other columns.
Insert one column in between the Date & Close price column and write the formula for Number (Weekday (A2, 2)
then sort by A to Z and only take Friday values and insert the weekly return column with formula (B3-B2)/B2*100
Then to put the Regression from data analysis we will get the values of Sun Tv Network Limited.

Data Analysis: The equation and the description
Shares = -0.6394 + 0.9672 NIFTY
N = 47, RSQUARE = 0.1979, F = 11.3468
The above equation tells us that the relationship between Sun Tv Network Limited (Y-Demand) and Nifty-Fifty (X-Price) negative sign means it has inverse relationship.
If prices rise, demand falls and if prices fall demand rises.
As Nifty Rise by 0.9672, If X rises by 1 unit demand will fall by -0.6394 units and vice versa.
T-stat for B is 3.3685 and the p value is less than 0.05 rather it its Greater than 0.01, which means b is statically significant at 1% level.
R Square is 0.1979 which means 5% of demand (variances in demand) is explained by X.
F is 11.34681 and the p value for this is also less than 0.01 which means overall this model is statically significant at 1% level

Conclusion: Sun Tv Network Limited share prices if Nifty prices rise by 1 unit Sun Tv Network Limited rise by 0.97. Beta under less than 1 but more than 0 are less volatile than the market.