Title: RELATIONSHIP OF SUNTV LTD WITH NIFTY 50
Author: SHUBHAM SINGH KUNWAR
Introduction: Sun TV Network Ltd is India’s largest media conglomerate, boasting an impressive 37 TV channels in 7 languages that reach over 140 million households ¹. Founded in 1985 as Sumangali Publications Private Limited, the company later renamed itself Sun TV Network Limited and launched its flagship channel, Sun TV, in 1993.
Objective: To find out Beta of SUNTV LTD and its significant.
Data Collection: Data for Nifty 50 and SUNTV LTD was downloaded from 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 of SUNTV LTD was regressed on weekly returns of Nifty 50.
Data Analysis: Weekly return of SUNTV LTD = -1.58 + (0.83)
N = 46, R2 = 0.003, t stat = (10.70), F = 0.15, P-value = 7.85E-14
The above equation shows the relationship between Niffty50 & SUNTV LTD. The positive sign before 0.83 means if Nifty decrease SUNTV LTD raises & vice versa. The Coefficient of Nifty50 has t stat = (0.03) & the P value of which is 7.85 meaning Nifty50 is not statistically significant. To increase the prices of SUNTV LTD, R2 is 0.0192 meaning 1.92% of SUNTV LTD prices are explained by Nifty50. 98.08% dependents upon other factors like fundamentals are other factors. F is 0.155254 & the P value of this is 7.85 meaning it is more than 7.07 meaning the overall model is not statistically significant.
Conclusion:
-0.61723 coefficient is negative, so SUNTV LTD is not good for long term investment.