Title – Relationship between Nifty 50 and SHRIRAM FINANCE
Author – Sharayu Patil (21230023445) (Fintech)
Introduction –
Shriram Finance Limited is one of India’s leading NBFCs, with 8.22 million private and corporate customers across India.
Shriram Finance is the country’s one of the biggest retail NBFC offering credit solutions for commercial vehicles, two-wheeler loans, car loans, home loans, gold loans, and personal and small business loans. We are part of the 49-year-old Shriram Group, a financial conglomerate that has emerged as a trusted partner in creating transformative experiences and lasting impressions in customers’ lives.
In November 2022, Shriram Group’s entities – Shriram Transport Finance Company Limited, Shriram City Union Finance Limited, and Shriram Capital Limited – merged to form Shriram Finance Limited. As of December 31, 2023, with a network of 3,037 branches and a workforce of 73,485, Shriram Finance has combined Assets Under Management (AUM) worth ₹ 214,233 crores.
As a leading financial enterprise with a rich business history, Shriram Finance is founded on inclusion and sustainability, helping us unlock value for generations to come. Our presence spans across the agrarian heartlands of rural India to its vibrant, cosmopolitan metros where we set wings to aspirations. At Shriram Finance, we are committed to meeting our customers at every touchpoint of their financial journey so that they get to explore unlimited possibilities through us.
Powered by cutting-edge technology, Shriram Finance is a digitally mature financial institution that reflects the banking needs of Millennial and Gen Z customers. We offer priority financial services to those in the unbanked and underbanked sectors, expanding our innovative product pipeline at every stage of disruption.
Mission: Operational efficiency, truthfulness and a robust emphasis on catering to the needs of the common man by providing him with high-quality and cost-effective products & services are the values driving Shriram Finance. These core values are deep-rooted within the organization and have been firmly adhered to over the years.
Vision: To be the country’s most-preferred financial services destination, delivering delightful customer experience through empowered employees.
Objective –
To calculate the beta of SHRIRAM FINANCE Ltd and its significance.
Views & Reviews-
Shriram Finance, founded by R. Thyagarajan in 1974, is widely respected for its customer-centric approach and strong presence in retail finance, particularly in commercial vehicle financing. The company’s focus on rural and semi-urban markets has contributed to financial inclusion, while its diversified product portfolio and risk management practices have garnered positive reviews. Despite facing regulatory challenges and competition in India’s dynamic financial services sector, Shriram Finance’s leadership under Thyagarajan’s guidance has enabled it to maintain a strong market position and reputation for reliability and innovation.
Data Collection-
The data is downloaded from the 1st of February 2023 to the 31st of January 2024 for Nifty 50 and SHRIRAM FINANCE.
Nifty 50 is the independent variable.
SHRIRAM FINANCE is the dependent variable
ANOVA TABLE –
| SUMMARY OUTPUT | ||||||||
| Regression Statistics | ||||||||
| Multiple R | 0.048259 | |||||||
| R Square | 0.002329 | |||||||
| Adjusted R Square | -0.01936 | |||||||
| Standard Error | 3.83999 | |||||||
| Observations | 48 | |||||||
| ANOVA | ||||||||
| df | SS | MS | F | Significance F | ||||
| Regression | 1 | 1.583389 | 1.583389 | 0.107381 | 0.744633 | |||
| Residual | 46 | 678.2941 | 14.74552 | |||||
| Total | 47 | 679.8775 | ||||||
| Coefficients | Standard Error | t Stat | P-value | Lower 95% | Upper 95% | Lower 95.0% | Upper 95.0% | |
| Intercept | 1.22441 | 0.577229 | 2.121186 | 0.039326 | 0.062508 | 2.386312 | 0.062508 | 2.386312 |
| X Variable 1 | 0.128973 | 0.393583 | 0.32769 | 0.744633 | -0.66327 | 0.921215 | -0.66327 | 0.921215 |
Data Analysis –
- Relationship between Nifty 50 and SHRIRAM FINANCE:
The equation ( SHRIRAM FINANCE = 1.2244 + 0.1289 Nifty 50 ) indicates a positive relationship between the returns of Nifty 50 and SHRIRAM FINANCE. This means that when the return of Nifty 50 increases, the return of SHRIRAM FINANCE is expected to increase as well, and vice versa.
- Statistical Significance:
– The R square value of 0.002328933 suggests that only about 0.23% of the variation in SHRIRAM FINANCE’s return can be explained by the variation in Nifty 50’s return. This indicates a very weak relationship between the two variables.
– The F value of 0.107381007 and the corresponding P-value of 0.744632545 indicate that the overall model (relationship between Nifty 50 and SHRIRAM FINANCE) is not statistically significant. This means that the independent variable (Nifty 50) is not a significant predictor of the dependent variable (SHRIRAM FINANCE).
Conclusion-
Based on the statistical analysis, it can be concluded that there is a weak and statistically insignificant relationship between the returns of Nifty 50 and SHRIRAM FINANCE. This suggests that other factors not included in the model may have a stronger influence on the return of SHRIRAM FINANCE.
Reference –
- https://finance.yahoo.com/quote/SHRIRAMFIN.NS/history/
- https://finance.yahoo.com/quote/%5ENSEI/history/