Title: – Relationship of Sonata Softwares with Nifty 50

Author: – Shruti Vijay Shinde (FYMMS, Roll. No. 0222117)

                 Kohinoor Business School, Kurla.

Introduction: – Sonata Software is a global IT services and solutions company that provides software development, consulting, and outsourcing services to businesses across various industries. It was founded in 1986 and is headquartered in Bangalore, India. Over the years, the company has grown to become a significant player in the IT services industry.  Sonata Software serves various industries, including retail, travel, transportation, manufacturing, distribution, and software product companies. They have domain-specific expertise to address the unique challenges of each industry. Sonata Software works with a wide range of technologies, including but not limited to Java, .NET, cloud computing, mobile app development, artificial intelligence, data analytics, and more. Sonata Software offers a range of services, including:

Software Development, Digital Transformation, Consulting, Outsourcing, and Product Engineering.

Objective: – To Calculate the Beta of Sonata Softwares and find out its significance.

Views and Reviews:

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Data Collections: – Data is taken from 01-06-2022 to 31-07-2023. It has been downloaded from the NSE site, then Friday’s closing price was sorted and weekly returns of Nifty (i.e. X) and Sonata Softwares (i.e. Y) were calculated.

 

Data Analysis: – Equation “Y=1.1868-0.5421(X)”

                           (t_stat = 1.2453)

                            n = 50, R² = 0.0313, F = 1.5508

The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Sonata Softwares (y) the negative sign means a negative relationship meaning if “x” rises “y” falls and vice versa. If “x” rises by 1 unit, “y” falls by 0.5421, “n” means there are 50 observations, and figures in brackets are t_stat for “b”, so “b” is not as Calculated t_stat for b i.e. 1.2453 is lower than tabulated t(t0.5,49DF=1.677) so reject H1 and accept H0. R² is 0.0313 means 3.13% of y is explained by x. As the calculated value of F =1.5508 is less than the tabulated F (F 0.05,1DF,49DF) = 4.038, the overall model is statistically not significant at the 5% level.

So overall the model is not statistically significant at the 5% level.

Conclusion:

If b<1, Sonata Softwares share is good for long term investment.

 

References

ANI. (2023). NewsVoir. ANI, 2. Retrieved from https://www.aninews.in/news/business/business/dominos-makes-independence-day-extra-delightful-launches-freedom-feast-offer20230811114412/

Dutta, S. (2023). Hong’s Kitchen Introduces a Flavourful Journey with ‘Taste Tibet’ food. Hong’s Kitchen, 2. Retrieved from https://www.jubilantfoodworks.com/Uploads/Files/748jf-Hong-s-Kitchen.pdf