Problem Title:
\nTo determine RELATIONSHIP OF Nifty and Sundaram Finance Limited<\/p>\n
Author \u2013 Swati Gupta<\/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 value of Sundaram Finance Limited 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.
\nThe above regression equation tells us the relationship between X and Y. Where X is NIFTY\u2019s weekly returns and Y is Sundaram Finance Limited\u2019s weekly returns.
\nThe positive sign of Beta tells us the that there is a positive relationship between NIFTY and Sundaram Finance Limited\u2019s weekly returns.<\/p>\n
Observations:
\nIt was found that R Square is 93%, the regression Equation was found to be
\nY= -1.02879 + 0.939X
\nHere Beta value is 0.939<\/p>\n
CONCLUSION:
\n\u03b2 is statistically significant in case of NIFTY and Sundaram Finance Limited. Also, it can be concluded that Sundaram Finance Limited is a low beta share. Since it is less than 1.<\/p>\n","protected":false},"excerpt":{"rendered":"
Problem Title: To determine RELATIONSHIP OF Nifty and Sundaram Finance Limited Author \u2013 Swati Gupta 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, which was one of India’s largest insurance businesses at the time before being… Continue reading To calculate beta value of Sundaram Finance Limited company and find its significance<\/span><\/a><\/p>\n","protected":false},"author":92007,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-16082","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16082","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\/92007"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16082"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16082\/revisions"}],"predecessor-version":[{"id":16090,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16082\/revisions\/16090"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16082"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16082"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16082"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}