Nikhil Verma
80012100909
TITLE: Relationship of Nifty and Network 18
AUTHOR: Nikhil Verma
Introduction
Network18 Media and Investments Ltd, a market leader in its field, is one of the largest media conglomerates with diversified but complementary interests in television, including fifty Indian channels and thirteen international channels, as well as filmed entertainment, digital content, magazines, digital commerce, and allied businesses. Reliance Industries is the sole beneficiary of the Independent Media Trust, which promotes Network18. Network18’s principal business is broadcasting, which is managed by TV18 Broadcast ltd, a subsidiary of Network18. TV18 is India’s largest news network, with stations covering business news, general news, and regional news..
The goal of Network18 is to achieve the greatest levels of creative quality by cultivating a culture of innovation in order to create new content formats and strong brands across a variety of media.
Network18 claims to have unrivalled reach because to its continuing investments in regional and digital platforms.
OBJECTIVE: To calculate Beta Value of Network 18 and find its significance.
VIEWS AND REVIEWS:
DATA COLLECTION: The data of NIFTY and Network 18 was collected through NSE Website and was downloaded from 1-March-2021 to 28-February-2022 in an excel sheet. The closing prices were found out. The data was filtered on weekly basis and then weekly returns of both NIFTY and SAIL was calculated. The company returns have been regressed on nifty’s returns.
DATA ANALYSIS:
Predicted Y = 0.010382869+ 2.366106562X
N=47, R Square= 0.174816096, F= 9.321447268
Tstat(beta)= 3.05310453
Tstat (0.05,45)= 2.0141
The above regression equation tells us the relationship between X and Y. Where X is NIFTY’s weekly returns and Y is Network 18’s weekly returns.
The positive sign of Beta tells us the that there is a positive relationship between NIFTY and network 18’s weekly returns.
From the equation, it can be seen that if X rises by 1 unit, Y will rise by 2.366106562 units.
T calculated is more that T tabulated which means, β is statistically significant at 5% confidence level.
R^2 is 0.174816096 which means 17% of Y (SAIL) is explained by X. And the balance is explained by error.
F is 9.321 which is more than table value which means model is statistically significant at 5% level.
CONCLUSION:
β is statistically significant in case of NIFTY and NETWORK 18. Also, it can be concluded that Network 18 is a low beta share. Since it is less than 1.