NAME – SWATI NARAYAN SAPID – 80012100300 DIVISION A
Introduction:
Relation between NIFTY and SUN TV
Sun TV Network is an Indian mass media company headquartered in Chennai, Tamil Nadu, India. It is a part of Sun Group and is one of Asia’s largest TV networks. Established on 14 April 1992 by Kalanithi Maran, it owns a variety of television channels in multiple languages and radio stations in multiple languages. Its flagship channel is Sun TV, which was the first fully privately owned regional TV channel in India and the first Tamil TV channel in the world.
Objective:
To calculate the Beta value and find its significance.
Data collection:
The data was gathered from a secondary source, the NSE’s official website. Data on the NSE’s daily closing stock price and the bank Sun TV has been gathered. The data has been narrowed down to the weekend (Friday) closing price only.
Data Analysis: Regression Equation:
Regression Statistics Multiple R 0.0856878
R Square Adjusted R Square
0.007342405 0.016868756 28.83882044
Standard Error
Observations 47
Interpretations:
Here, we can observe that the R square value is 0.007342405, meaning that the .734%% of weekly returns of SUN TV can be explained by Nifty, which is comparatively higher than most industry trends. We can conclude that SUN TV does follows the Nifty trend.
ANOVA
Significance df SS MS F F
Regression
Residual
Total 42
1 252.2189337
41 34098.78014 34350.99907
252.2189337 831.6775643
0.303265285
0.58483095
Interpretations:
H0: Nifty is not influencing the weekly returns of SUN TV. H1: Nifty is influencing the weekly returns of SUN TV.
Here as the F value is 0.303265285 which is less than 4, thus we select the null hypothesis and reject the alternate hypothesis, concluding that nifty is not influencing the weekly returns of SUN TV.
Also, the Significance F value is 0.58483095 which is greater than 0.05 thus the model is not significant.
Coefficients
Stand ard Error
t Stat
P- value
Lower 95%
Upper 95%
Lower 95.0%
Upper 95.0%
Intercept
481.1122838
65.398 40094
7.3566 36812
5.193 84E- 09
349.03 75337
613.18 70339
349.03 75337
613.18 70339
Closing price of NIFTY
0.002172565
0.0039 45131
0.5506 95274
0.584 83095
– 0.0057 94788
0.0101 39918
– 0.0057 94788
0.0101 39918
Interpretations:
We can observe here that the Beta value is 0.002172565 meaning that 1 unit change in Nifty leads to 0.002172565 change in weekly returns of SBI. Also, the value of beta is positive indicating the presence of a positive relationship between the two variables.
P value is 0.58483095 which is greater than .05 thus the model is not significant at 95% confidence interval.