Report:
1) Title: Relationship of Shriram Finance with Nifty50.
2) Author: Saurav Raj
3) Introduction: Shriram Finance Limited is one of India’s largest retail non-banking financial companies (NBFCs). It was established following the merger of Shriram Transport Finance Company and Shriram City Union Finance, consolidating its position in the commercial vehicle and retail finance segments. The company offers a diverse range of products including commercial vehicle loans, two-wheeler loans, car loans, and gold loans. With a vast network of branches across rural and semi-urban India, it plays a vital role in providing credit to the unbanked and underbanked sectors.
4) Objective: to calculate beta and observe its significance
5) Literature review:
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Kumar, R. (2020). Impact of Market Volatility on NBFC Stocks in India: An Empirical Study. Journal of Financial Studies, 15(2), 45-60.
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Singh, A., & Sharma, P. (2022). Evaluating Beta as a Risk Metric for the Indian Equity Market. Indian Journal of Finance, 16(8), 22-38.
6) Data collection: data for the company and Nifty 50 was downloaded from NSE india.com for the period first December 2024 to 30th November 2025. Friday closing price were found out, weekly returns of nifty 50 and company were calculated weakly returns of nifty were taken as X and weekly return of your company was taken as Y. Y was regressed on X.
7) Data analysis: Returns = $0.57 + 1.35$ (Nifty)
$N = 48, R^2 = 0.28, F = 17.69, pvalue = 0.0001$
The above equation shows relationship between Returns and Nifty. Positive sign means there is a direct relationship between Nifty rises, Returns rise and vice versa. If Nifty rises by 1 unit the Returns will rise by 1.35 units. T stats for Nifty is 4.21 and the P value is 0.0001 so Nifty is statistical is significant at 1% level, n is 48 so the number of observations are 48. R² is 0.28 which means 28% of Returns depends on Nifty, in other words 28% of variances of Returns are explained by Nifty. 72% is the error due to the variables which are not included in the model. F is 17.69, P value is 0.0001 which is less than 0.01, that means the model is statistically significant.
8) conclusion: is beta is more than 1, invest in the company for short term if Nifty is to rise.
9) Reference:
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Fama, E. F., & French, K. R. (1993). Common risk factors in the returns on stocks and bonds. Journal of Financial Economics, 33(1), 3-56.
Sharpe, W. F. (1964). Capital asset prices: A theory of market equilibrium under conditions of risk. The Journal of Finance, 19(3), 425-442.
