Author: Snehal Sanap
Introduction:
Sun TV Network is an Indian Media conglomerate 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 1993 by Kalanithi Maran, it owns a variety of television channels in multiple languages and radio stations in multiple languages. Sun Group besides television media has 48 FM Radio Stations, two Daily Newspapers, five Magazines, a DTH satellite service & an IPL franchise.
Objective: To find Beta (β) of Sun Tv Network and its significance.
Data Collection:
Nifty 50 Index and Sun Tv Network data was collected from nseindia.com website for the period of one year dating from 1st February 2023 to 31st January 2024. The historical data collected was manipulated using Microsoft Excel to get Friday closing prices of both, the index and the company. Weekly returns were based on the closing prices were calculated using Excel tools and with use of Regression analysis, weekly returns of Sun Tv Network were regressed on weekly returns of Nifty 50 Index.
Data Analysis:
Equation of regression of weekly returns of Sun Tv Network on weekly returns of Nifty 50 Index-
Format of Regression equation is Y = α + β(X)
weekly returns of Sun Tv Network = 0.635809064 + 0.63593259 × weekly returns of Nifty 50 Index
(2.016190572)
Where,
Number of Observations = 48,
R Square = 0.081194895,
F = 4.065024421,
P-value = 0.049641461
Interpretation-
- The above equation shows relationship between weekly returns of Sun Tv Network and weekly returns of Nifty 50 Index.
- Negative sign means inverse relation, meaning if weekly returns of Nifty 50 Index rise then weekly returns of Sun Tv Network falls and vice-versa.
- If weekly returns of Nifty 50 Index rise by 1-unit, weekly returns of Sun Tv Network will fall by 0.63593259 unit and vice-versa.
- Figure in bracket shows t-stat for β, P-value for which is 0.049641461, which is less than 0.05 meaning β is statistically significant at 5% significance level.
- Number of Observations are 48, R-square value is081194895 meaning approximately 8% of weekly returns of Sun Tv Network are explained by weekly returns of Nifty 50 Index. Balance 92% (approximate) is error due to other variables which are not in the model.
- F is 065024421, the P-value of which is 0.081194895, which is more than 0.05 meaning overall, the model is not statistically significant at 5% significance level.
Conclusion:
As β (0.63593259) is less than 1, it is good to invest in Sun Tv Network for long term.