Name: Sneha Narayanan
Sap ID: 80012100959
Course: MBA, 1st year
Institute: NMIMS, Navi Mumbai
Problem Title:
To determine the RELATIONSHIP OF Nifty and Sundaram Finance Limited
Author – Sneha Narayanan
INTRODUCTION OF COMPANY
Sundaram Finance was founded in 1954 with a paid-up capital of Rs. 2 lakhs and was sponsored by Madras Motor & General Insurance Company, which was one of India’s largest insurance businesses at the time before being nationalized in 1971.
The company began with the sole goal of funding the acquisition of commercial vehicles and has since evolved to become one of India’s most reputable financial services groups.
Sundaram Finance Limited now has a diverse presence in a wide range of financial services and products, including mutual funds, housing finance, general insurance, information technology, business process outsourcing, and retail distribution.
OBJECTIVE
To calculate the beta of a company and find its significance
Data Collection:
Data was collected from the NSE Website which comprises historic data for the past 1 year. The Friday of each week of the year was taken into consideration. The resultant was calculated and regression was performed on the data.
Data Analysis:
We know Y= a +bx1
Where b is the beta value.
H0 – Null Hypothesis
H1 – Alternate Hypothesis
If the beta coefficient is significant, the interpretation is that for every 1-unit increase in the predictor variable, the outcome variable will increase by the beta coefficient value.
Observations:
It was found that R Square is 93%, the regression equation was found to be
Y= -1.02879 + 0.939X
Here Beta value is 0.939