Title: Relationship between Nifty & SUN TV Network
Author: Shrishti Baranwal (F1 Batch)
Roll No – 21230023062
Introduction:
Our Sun Group consists of 35 Television Channels in 6 languages, DTH one of largest Service Provider in India, 69 FM Radio Stations, 3 Daily Newspapers, 6 Magazines & IPL franchise.
Sun Group, India’s largest media conglomerate has power packed Thirty-Five Television Channels with the reach of more than 140+ million households in India. Sun Group’s channels can be viewed throughout the world including U.S.A, Canada, Europe, Singapore, Malaysia, Sri Lanka, South Africa, Australia, and New Zealand.
It also has 69 FM Radio Stations, Three Daily News Papers – Dinakaran one of the leading Tamil daily with daily sales of over 1.4 million copies, Tamil Murasu one of the leading evening Tamil daily and Six Magazines. Sun Direct one of the largest DTH (Direct to Home Satellite TV service) service provider in India having more than 16+ million subscribers, Sun Pictures the film division of Sun TV Network and owns the SunRisers Hyderabad (India) & SunRisers Eastern Cape (South Africa) IPL franchise.
Objective:
To calculate beta & its significance
Views/Reviews:
Sun TV Network, part of one of Asia’s largest TV Networks Sun Group, is an Indian media giant headquartered in Chennai. It owns a variety of television channels radio stations in multiple languages. Sun Group currently owns and operates 33 TV channels across Indian languages – Tamil, Telugu, Malayalam, Kannada, Marathi, and Bengali.
Sun TV has reported a consolidated net profit of ₹471 crore for the third quarter ended December, marginally higher than ₹445 crore posted during the corresponding quarter in the previous fiscal.
The company’s consolidated revenue from operations, on a year-on-year basis, grew 7% to ₹1,060 crore during the December quarter as against ₹994 crore in the same period last year.
Data Collection:
Data regarding the equity and nifty of Sun TV Network Ltd has been downloaded from nseindia.com. After going in the historical data, the data of 1 year was taken from 1st November 2022 to 30th October 2023.
To simplify the process and see just the information needed the columns were deleted except date and closing rate. A column was added of the weekday in the data sheet and then the returns of equity and nifty were found by using the formula (Current dates price – Previous Dates price)/Previous date price * 100.
Further a regression table was formed through which an equation was made.
Weekly returns of Nifty = X
Weekly returns of SUN TV Equity = Y
The standard regression equation is:
Y = a + bx
Where, Y is the dependent variable (SUN TV Network)
X is the independent variable (Nifty)
a is the intercept,
b is the slope.
In case of SUN TV LTD Network,
The equation formed is:
Y = – 0. 310 + 0.113 X
Total Observations – 48
F – 0.566
T stat – 0.753
Significance – 0.456
R square – 0.012
The above equation shows the relationship between Nifty 50 and SUN TV Network. Return of SUN TV Network is dependent variable and Return of Nifty 50 is independent variable. Positive sign means if Nifty50 increases SUN TV Network also increases. If Nifty50 price rises by 1 unit, SUN TV Network share price will rise by 0.113 and vice versa. No of observation are 48. T stat for b is 0.753 and the P value is 0.456, suggest that the slope coefficient (0.113) is not statistically significant. R-squared is 0.012, indicating that only a small percentage (1.2%) of the variability in SUN TV Network returns is explained by the Nifty returns. Overall model is statistically insignificant at 5% level.
Conclusion:
Beta = 0.1095
As beta is less than 1 it is better suited for long term investment.
References:
https://www.zaubacorp.com/company/SUN-TV-NETWORK-LIMITED/L22110TN1985PLC012491
