Relationship of Indices Nifty 50 with Saregama India Ltd
Author Name: Sahil Nitin Bhalerao
Introduction to Saregama India Ltd
Saregama India Ltd, a subsidiary of the RP-Sanjiv Goenka Group, is one of India’s oldest music labels and the country’s first music company. Founded in 1901 as the Gramophone Company of India, Saregama boasts a vast catalog of Indian music across multiple languages. Over the years, the company has diversified into various entertainment verticals, including music publishing, film production, and streaming services. With its iconic label and digital presence, Saregama remains a significant player in the Indian entertainment industry.
Objective
The primary objective of this study is to determine the beta value of Saregama India Ltd in relation to the Nifty 50 index. Beta measures the volatility of Saregama’s stock compared to the overall market. The significance of this relationship will also be analyzed to understand how the stock reacts to market fluctuations. This study will aid investors in assessing the short-term investment potential of Saregama India Ltd.
Literature Review
1. Stock Analysis (2025) reported that Saregama India Ltd experienced a 19% year-on-year increase in net profit to ₹62.3 crore for the quarter ended December 31, 2024. This growth indicates the company’s strong financial performance and resilience in the entertainment sector.
2. TradingView India (2025) provided technical analysis on Saregama India Ltd, highlighting that the stock has shown consistent buy signals over various timeframes. This suggests a positive market sentiment and potential for short-term investment opportunities.
Data Collection
The data for Saregama India Ltd and Nifty 50 was collected for the period from 1st January 2024 to 31st December 2024. The closing prices on Fridays were used for both indices. The Nifty 50 was represented as X and Saregama India Ltd as Y. A linear regression analysis was performed where Y was regressed on X to determine the relationship.
Data Analysis
The regression analysis yielded the following results:
– Regression Equation: Y = βX + C
– Beta (β): 1.0399
– R Square: 0.0791 (7.91%)
– Multiple R: 0.2813
Interpretation
A beta of 1.0399 indicates that Saregama India Ltd has a volatility similar to the overall market, with a slight tendency to move in the same direction as the Nifty 50. The R Square value suggests that only 7.91% of Saregama’s stock price movements can be explained by changes in the Nifty 50 index. This indicates that other factors such as company performance, sector-specific developments, and consumer sentiment play a significant role in the company’s stock price fluctuations.
Conclusion
Since the Beta (1.0399) is greater than 1, it indicates that Saregama India is good for short-term investment.
References
1. Stock Analysis. (2025). Saregama India (NSE:SAREGAMA) Stock Price & Overview. Retrieved from [stockanalysis.com](https://stockanalysis.com/quote/nse/SAREGAMA/)
2. TradingView India. (2025). SAREGAMA Stock Price and Chart. Retrieved from [in.tradingview.com](https://in.tradingview.com/symbols/NSE-SAREGAMA/)