Name: Sneha Narayanan
\nSAP ID: 80012100959
\nCourse: MBA, 1st Year
\nInstitute: NMIMS, Navi Mumbai<\/p>\n
Problem Title:
\nTo determine relationship of Nifty and Sundaram Finance Limited<\/p>\n
Author: Sneha Narayanan<\/p>\n
Introduction of Company:
\nSundaram Finance was founded in 1954 with a paid-up capital of Rs. 2 lakhs and was sponsored by Madras Motor & General Insurance Company, which was one of India’s largest insurance businesses at the time before being nationalized in 1971.
\nThe company began with the sole goal of funding the acquisition of commercial vehicles and has since evolved to become one of India’s most reputable financial services groups.
\nSundaram Finance Limited now has a diverse presence in a wide range of financial services and products, including mutual funds, housing finance, general insurance, information technology, business process outsourcing, and retail distribution.<\/p>\n
Objective:
\nTo calculate beta of company and find its significance<\/p>\n
Data Collection:
\nData was collected from the NSE Website which comprises of historic data for the past 1 year. The Friday of each week of the year was taken into consideration. The resultant was calculated and regression was performed on the data.<\/p>\n
Data Analysis:
\nWe know Y= a +bx1
\nWhere b is the beta value.
\nH0 \u2013 Null Hypothesis
\nH1 \u2013 Alternate Hypothesis
\nIf the beta coefficient is significant, the interpretation is that for every 1-unit increase in the predictor variable, the outcome variable will increase by the beta coefficient value.
\nIt was found that R Square is 93%, the regression Equation was found to be
\n Y= -1.02879 + 0.939X
\nHere Beta value is 0.939<\/p>\n
Interpretations:
\nWe can see that the R square value is 0.31314, which means that Nifty can explain 31.3 % of the weekly returns of Sundaram Finance Limited. Because the proportion is greater, we may deduce that Sundaram Finance Limited. follows the Nifty trend.<\/p>\n
We can observe here that the Beta value is 0.939 meaning that 1 unit change in Nifty leads to 0.939 change in weekly returns of Sundaram Finance Limited. We also need to note that the value is beta is positive indicating the presence of a positive relationship between the two variables. <\/p>\n
H0: Nifty is not influencing the weekly returns of Sundaram Finance Limited.
\nH1: Nifty is influencing the weekly returns of Sundaram Finance Limited.
\nHere as the F value is 20.0603 which is greater than 4, thus we can accept the alternative hypothesis and reject the null hypothesis, concluding that nifty is influencing the weekly returns of Sundaram Finance Limited.
\nAlso, the Significance F value is 0.000052 which is more than .025 thus the model is significant. <\/p>\n","protected":false},"excerpt":{"rendered":"
Name: Sneha Narayanan SAP ID: 80012100959 Course: MBA, 1st Year Institute: NMIMS, Navi Mumbai Problem Title: To determine relationship of Nifty and Sundaram Finance Limited Author: Sneha Narayanan Introduction of Company: Sundaram Finance was founded in 1954 with a paid-up capital of Rs. 2 lakhs and was sponsored by Madras Motor & General Insurance Company,… Continue reading Report on regression analysis of Nifty and Sundaram Finance Limited<\/span><\/a><\/p>\n","protected":false},"author":91928,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-15978","post","type-post","status-publish","format-standard","hentry","category-management","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/15978","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/users\/91928"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=15978"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/15978\/revisions"}],"predecessor-version":[{"id":16175,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/15978\/revisions\/16175"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=15978"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=15978"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=15978"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}