Relationship between Nifty 50 and Sun TV Network Limited

Relationship between Nifty 50 and Sun TV Network Limited

Author: Sahil Ravindra Brahmanjai (0225003)

Introduction:

Sun TV Network Limited is one of India’s largest and most influential media and entertainment companies. Established in 1993 and headquartered in Chennai, the company operates a wide range of television channels across multiple languages including Tamil, Telugu, Kannada, and Malayalam. It also has a strong presence in FM radio, DTH services (Sun Direct), and digital platforms.

Sun TV Network is known for its dominant market share in South India and consistent financial performance driven by advertisement revenues and subscription income. Being a listed company on the NSE, its stock performance is influenced by broader market movements such as the Nifty 50 index. This report examines the relationship between Sun TV Network Ltd and the Nifty 50 index to understand its market sensitivity.

Objective:

To calculate Beta and observe its significance.

Literature Review:

1. Market Sensitivity of Media Stocks

(Sharma et al., 2023) studied the volatility of media sector stocks in comparison with benchmark indices like Nifty 50. The study found that media companies tend to show moderate sensitivity to market fluctuations, depending on advertising cycles and economic conditions.

2. Risk-Return Behaviour of Entertainment Sector

(IJRAR, 2025) analysed entertainment sector companies and concluded that firms like Sun TV Network show stable returns with moderate beta values, making them suitable for balanced investors seeking both growth and stability.

Data Collection:

Data for Nifty 50 and Sun TV Network Ltd was collected from nseindia.com for the period 1/1/2025 to 31/12/2025. Friday closing prices were considered for both Nifty 50 and Sun TV Network Ltd.

Weekly returns of Nifty 50 were taken as X (independent variable) and weekly returns of Sun TV Network Ltd were taken as Y (dependent variable). Regression analysis was applied where Y was regressed on X.

Data Analysis:

Regression Equation:

y = -0.50 + 1.00x

Interpretation:

The above Equation shows the relationship between Nifty 50 and Sun TV Network Ltd. Positive means their Direct relation which means if Nifty 50 stock rises Sun TV Network Ltd stock rise and vice versa. If Nifty 50 stock increases by 1 unit, the Sun TV Network Ltd stock increases by 1.00 unit. Number of observations is 48. t-stat for beta 3.58. The P value is 0.00 less than 0.05 meaning Beta is statistically significant at 5% level. No. of observations are 48. R square is 0.22 meaning 22% is the error due to the variable not included in model. F is 12.84 and P value of which 0.00 less than 0.05 meaning Beta is statistically significant at 5% level.

Conclusion:

B=1, Hence invest for short term if Nifty 50 rise.

References:

Sharma, R., Mehta, A., & Gupta, S. (2023). Analysis of volatility in media sector stocks in India. Journal of Financial Studies, 14(2), 45–52.

IJRAR. (2025). A study on performance evaluation of entertainment sector stocks listed on NSE. International Journal of Research and Analytical Reviews, 12(3), 1–5.