{"id":19387,"date":"2023-12-26T17:19:28","date_gmt":"2023-12-26T11:49:28","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=19387"},"modified":"2023-12-26T17:19:28","modified_gmt":"2023-12-26T11:49:28","slug":"description-between-relation-between-sensex-index-and-shriram-finance-ltd","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=19387","title":{"rendered":"Description between relation between SENSEX INDEX AND SHRIRAM FINANCE LTD"},"content":{"rendered":"

AUTHOR:<\/b><\/u><\/strong>\u00a0 SANIKA KORGAONKAR ( FINANCE- 1)<\/p>\n

21230023616<\/p>\n

Thyagarajan is an industrialist and founder of Chennai-based Shriram Group<\/p>\n

Mr.\u00a0Y S Chakravarti\u00a0has been the Managing Director and Chief Executive Officer of the company since December 2022.<\/p>\n

Shriram Properties Ltd. (SPL) is one of the leading residential real estate development companies in South India, primarily focused on the mid-market and affordable housing categories.\u00a0<\/p>\n

It is a part of the Shriram Group, which is a prominent business group with four decades of operating history in India and a well-recognized brand in the retail financial services sector and several other industries<\/p>\n

\u00a0<\/p>\n

OBJECTIVE OF THE \u00a0REPORT<\/b><\/u><\/strong>\u00a0\u2013 <\/b><\/strong><\/p>\n

To Calculate Beta and its significance of the equity stock of SHRIRAM FINANCE LTD.<\/b><\/u><\/strong><\/p>\n

\u00a0<\/b><\/u><\/strong><\/p>\n

REVIEWS:<\/b><\/u><\/strong> \u00a0<\/b><\/u><\/strong><\/p>\n

The tagline of Shriram Finance Ltd is \u201cCUSTOMER FIRST .\u201d<\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0Dilip Davda – The company claims that it has priced the IPO reasonably. The only favourable point, for now, is the Shriram Group tag and their efforts to back on track in the near term. Thus this issue is purely and only for long term investors who have surplus funds and risk appetite. Others can skip this issue and may buy at dip post listings.<\/p>\n

To be country’s most-preferred financial services destination, delivering delightful customer experience through empowered employees.<\/p>\n

\u00a0<\/p>\n

PROCEDURE FOR DATA COLLECTION<\/b><\/u><\/strong><\/p>\n

First I logged on to BSE official website www.yahoofinance.com<\/u><\/a>. Then I clicked on historical data via (https:\/\/finance.yahoo.com\/quote\/SHRIRAMFIN.NS\/history). Then I selected the period from 01st<\/sup>\u00a0\u00a0Nov 2022 to 31st<\/sup>\u00a0Oct 2023 then clicked apply and downloaded the CSV file of the price of the BSE index.<\/p>\n

Similar procedure is followed for obtaining the data of data of Tech Mahindra limited for the period 01st<\/sup>\u00a0\u00a0Nov 2022 to 31st<\/sup>\u00a0Oct 2023.<\/p>\n

\u00a0<\/p>\n

After downloading the CSV \u00a0Files of both the \u00a0BSE index and Shriram Finance LTD I proceeded to calculate beta of the stock of Shriram Finance LTD.<\/p>\n

\u00a0<\/p>\n

PROCEDURE FOR DATA ANALYSIS<\/b><\/u><\/strong><\/p>\n

For calculating the weekly returns of the stock and the bse index, I selected the closing price of every last day of the trading week i.e. Friday<\/p>\n

For arriving at the last day of the week I applied the formula =Weekday(cell value,2) then it returns the days signifying: 1 \u00a0for Monday 2 for Tuesday likewise 6 for Friday , I kept only the no 6 denoting Friday and deleted the rest useless data for the purpose.<\/p>\n

\u00a0<\/p>\n

On performing the above mentioned procedure, we are left with three columns first being date column 2nd<\/sup>\u00a0\u00a0being closing prices of the stock and 3rd<\/sup>\u00a0being closing price of the BSE index.<\/p>\n

\u00a0<\/p>\n

Now we will calculate the corresponding return for each week from the stocks by applying the formula = {(Closing value \u2013 Opening Value)\/<\/u>\u00a0Opening Value*100}.<\/p>\n

\u00a0<\/p>\n

Formula used ,<\/p>\n

for calculation of Beta = COVARIANCE ( RETURN ON STOCK,RETURN ON MARKET INDEX)\/VARIANCE OF MARKET)<\/p>\n

\u00a0<\/p>\n

Beta= COV(Ri, Rm) \u00a0\u00a0<\/u><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0VAR (Market)<\/p>\n

={Ri \u2013 Mean of Ri}{Rm- Mean of Rm}\/No of items<\/u><\/p>\n

{(Rm- mean of Rm )^2}\/No of items<\/p>\n

\u00a0<\/p>\n

Hence on making the above calculations we get the beta for the company = 0.6263 which is less than 1, that indicates that the company is less volatile in nature hence it is suitable for long term investments.<\/p>\n

\u00a0<\/p>\n

By applying the anova on the above data obtained we obtained the correlation between the stock and market return .2300 which indicates there is positive relation between the movement of price of stock and market movements. Similarly \u00a0we obtained the F value and P value to be 2.5500 and 0.1135 respectively.<\/p>\n

\u00a0<\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

AUTHOR:\u00a0 SANIKA KORGAONKAR ( FINANCE- 1) 21230023616 Thyagarajan is an industrialist and founder of Chennai-based Shriram Group Mr.\u00a0Y S Chakravarti\u00a0has been the Managing Director and Chief Executive Officer of the company since December 2022. Shriram Properties Ltd. (SPL) is one of the leading residential real estate development companies in South India, primarily focused on the… Continue reading Description between relation between SENSEX INDEX AND SHRIRAM FINANCE LTD<\/span><\/a><\/p>\n","protected":false},"author":139130,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[],"class_list":["post-19387","post","type-post","status-publish","format-standard","hentry","category-investing","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19387","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\/139130"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19387"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19387\/revisions"}],"predecessor-version":[{"id":19388,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19387\/revisions\/19388"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19387"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19387"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19387"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}