Title: RELATIONSHIP OF SAREGAMA LIMITED WITH NIFTY 50
Author: SAURABH SHAHI
Introduction: SAREGAMA LIMITED, an RP Sanjiv Goenka Group company, is India’s oldest music label, youngest film studio, and multi-language TV content producer.
In 1902, Saregama released India’s first-ever studio-recorded song. In the years that followed, the company continued to expand its catalog to become the largest in-perpetuity global owner of both sound recording and publishing copyrights of Indian music across 14 different languages. Steadily, the company expanded its portfolio to include intellectual property rights of over 4000 hours of TV content produced for channels in Hindi, Tamil, Telugu, Kannada, Malayalam, and Bengali. Over the last few decades, the company forayed into retailing music through physical and digital mediums such as CDs, iOS & Android-based apps, and USB-based thematic music cards.
Objective: To find out the Beta of Saregama Ltd and its significance.
Data Collection: Data for Nifty 50 and SAREGAMA LIMITED was downloaded from the NSE site for the period 01st April 2023 to 31st March 2024. Data was manipulated to get Friday closing prices, and weekly returns were calculated by the formula (Yt-1—Yt) / Yt*100 weekly returns. Saregama Ltd. was regressed on the weekly returns of Nifty 50.
Data Analysis: Weekly return of Rattan Power India Ltd = -1.11 + (-1)
N = 45, R2 = 1, t stat = (-2.5456), F = 9.5061, P-value = 0.0145
The above equation shows the relationship between Niffty50 & Saregama Ltd. The negative sign before -1, means that if Nifty decreases Saregama Ltd raises & vice versa. The Coefficient of Nifty50 has t stat = (-2.5456) & the P value of which is 0.0145 meaning Nifty50 is not statistically significant. To increase the prices of Saregama India Ltd, R2 is 1 meaning 1.00% of Saregama Ltd prices are explained by Nifty50. 100% dependent upon other factors like fundamentals are other factors. F is 9.5061 & the P value of this is 0.0145 meaning it is less than 0.05 meaning the overall model is statistically significant.
Conclusion:
(-1) coefficient is negative, so Saregama Ltd is not good for long-term investment
and risky.