RESEARCH METHODOLOGY ASSIGNMENT
Relation between Nifty and Sun TV Network Limited
Author :- Sanskar Jain (F3)
Roll. No :-21230023526
Introduction: –
Sun TV Network, India’s largest media conglomerate has powerpacked 35 TV channels in 6 languages with the reach of more than 140+ million households in India. Holding a bouquet of 35 top-rated channels in 6 languages, Sun TV Network has got a reach , frequency and patronage that other group covet but can’t compete with Sun TV Network believes in giving you wholesome fare .The response to our programmes and the viewership of our news has been phenomenal .
Objective: –
To Calculate Beta(β) and its significance of the equity stock of Sun TV Network Limited .
Reviews :-
Sun TV Network Limited is known for it’s diverse entertainment offerings. With a strong presence in the regional market, especially in South India, Sun TV has successfully carved a niche for itself . This diversified content strategy contributes to the Sun TV Network’s popularity and viewer engagement . Financially, Sun TV Network has shown stability and growth over the years, reflecting effective management readiness strategies .
Data Collection: –
Data was downloaded from nseindia.com for 01-10-2022 to 30-09-2023 for Nifty as well as for Sun TV Network Limited. All the columns were deleted for both the sheets except date and closing price and the Friday closing price were found for both. Returns for X and Y were calculated, X being Nifty and Y being Sun TV Network Limited. Finally, data analysis was done.
Weekly returns of Nifty = X
Weekly returns of Siemens Equity = Y
Linear Regression was carried out.
Data Analysis: –
The regression equation has the form:
Y = a + b*X
Where, Y is the dependent variable,
X is the independent variable,
a is the intercept,
b is the slope.
In our case Sun TV Network Limited is the dependent variable and Nifty 50 is the independent variable.
Intercept, a = 0.074994
Slope, b = 0.93133
R Square = 0.122526
F = 6.562855
So, the regression equation is given by-
Y (Sun TV Network Limited.) = 0.074994+ 0.93133* X (Nifty)
The above equation shows us the relationship between Sun TV Network Limited and Nifty. The positive sign indicates that if Nifty rises then the price of Sun TV Network Limited shares will also rise and vice-versa. If Nifty rises one unit i.e., Nifty rises by one rupee then Equity will rise by 93.133 and vice versa. t-stat for b (co-efficient of Nifty) is 2.561807 and the p-value is 0.01368, statistically significant for Equity at 95% level. The number of observations is 49.
Conclusion: –
Beta is 0.93133, which is smaller than 1, it means Sun TV Network Limited is good for Long-term investment.
Reference: –