{"id":22729,"date":"2025-03-25T14:58:04","date_gmt":"2025-03-25T09:28:04","guid":{"rendered":"https:\/\/www.sachdevajk.in\/?p=22729"},"modified":"2025-03-25T14:58:04","modified_gmt":"2025-03-25T09:28:04","slug":"relationship-of-sundaram-finance-with-nifty-50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=22729","title":{"rendered":"Relationship of Sundaram finance with Nifty 50"},"content":{"rendered":"

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Title<\/span><\/b>: Relationship of Sundaram finance with Nifty 50<\/b><\/span><\/p>\n

Author:\u00a0 <\/span>Sadgun Chintare<\/span><\/p>\n

Introduction<\/span><\/b>: <\/span><\/p>\n

Sundaram Finance Limited was established in 1954 and is headquartered in Chennai, Tamil Nadu. It is one of India\u2019s most trusted non-banking financial companies (NBFCs) with a strong focus on customer-centric services.<\/span><\/p>\n

The company follows a conservative and stable financial approach, ensuring long-term sustainability and growth. Over the years, it has built a reputation for ethical business practices, strong corporate governance, and consistent profitability.<\/span><\/p>\n

Sundaram Finance has expanded its reach with over 640 branches across India, catering to both individual and business clients. The company is also listed on the NSE and BSE, making it a significant player in the financial market. With a legacy of over seven decades, it continues to be a key driver in India\u2019s financial services sector.<\/span><\/p>\n

\u00a0<\/span><\/b>Literature Review :<\/span><\/b><\/p>\n

Sundaram (1997)\u00a0<\/span><\/b>The article titled \u201cLegal Impediments in the Growth of Housing Finance in India\u201d by P.S.A. Sundaram, published in Vision in 1997, examines the legal challenges hindering the expansion of housing finance in India. It estimates a requirement of approximately Rs. 77,500 crores for the housing sector during the 8th<\/sup> Five Year Plan to construct around forty lakh dwelling units by the turn of the century. The paper identifies key legal obstacles, particularly those affecting resource mobilization and the timely recovery of loans. It suggests that establishing a secondary mortgage market, similar to those in other countries, could significantly aid in mobilizing resources for housing finance growth in India. \u00a0<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/span><\/p>\n

\u00a0<\/span><\/b><\/p>\n

Ranjan Das &\u00a0 <\/span>Sundaram (1997) <\/span>The National Bureau of Economic Research (NBER) Working Paper No. 5976, titled \u201cTaming the Skew: Higher-Order Moments in Modeling Asset Price Processes in Finance,\u201d authored by Sanjiv Ranjan Das and Rangarajan K. Sundaram in 1997, addresses the limitations of the Geometric Brownian Motion model, particularly its inability to capture the observed skewness and kurtosis in financial markets. \u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span><\/span><\/p>\n

\u00a0<\/span>The authors focus on two prominent alternative models: jump-diffusion models and stochastic volatility models. They analyze the statistical properties of these models, emphasizing how skewness and kurtosis patterns evolve with varying observation intervals. Their findings suggest that each model exhibits distinct patterns, providing a basis for empirical testing to determine which model aligns better with specific market data. However, they also note that certain parameter configurations can lead to similar behaviors between the two models. <\/span><\/p>\n

This paper contributes to the literature by offering a framework for selecting appropriate asset price models based on higher-order moment behaviors, aiding both researchers and practitioners in developing more accurate financial models.<\/span><\/p>\n

Data collection :<\/span><\/b><\/p>\n

Sundaram finance and Nifty50 data was download for period 1-1-24 to 31-12-24 and data was manipulated to find out the Friday closing prices were calculated of Nifty50 = X and Mazagoan Shipbuilders = Y, Y was regression on X<\/span><\/p>\n

\u00a0<\/span><\/b>Data Analysis:<\/span><\/b><\/p>\n

Equation: Sundaram \u00a0<\/span>Finance = a + b(Nifty50)\u00a0 <\/span><\/span><\/p>\n

Interpretation:<\/span><\/p>\n

The regression equation describes the relationship between Nifty50 (X) and Sundaram Finance\u2019s share price (Y), indicating that Sundaram Finance\u2019s share price is the dependent variable, while Nifty50 is the independent variable.\u00a0 <\/span><\/span><\/p>\n

With 47 observations ((N = 47)), the (R^2) value is 0.18, which implies that 18% of the variation in Sundaram Finance\u2019s share price can be explained by changes in Nifty50. The F-value for the model is 9.98, and the p-value for the slope is 0.0028, which is less than the conventional threshold of 0.05. This indicates that the relationship between Nifty50 and Sundaram Finance\u2019s share price is statistically significant at the 5% level. Consequently, this model provides evidence to suggest a significant linear relationship between Nifty50 and Sundaram Finance\u2019s share price.<\/span><\/p>\n

Reference :<\/span><\/b><\/p>\n

P.S.A. Sundaram (1997): Legal Impediments in the Growth of Housing Finance in India<\/span><\/span><\/p>\n

Sanjiv Ranjan Das & Rangarajan K. Sundaram (1997): Taming the Skew: Higher-Order Moments in Modeling Asset Price Processes in Finance<\/span><\/span><\/p>\n

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\u00a0 Title: Relationship of Sundaram finance with Nifty 50 Author:\u00a0 Sadgun Chintare Introduction: Sundaram Finance Limited was established in 1954 and is headquartered in Chennai, Tamil Nadu. It is one of India\u2019s most trusted non-banking financial companies (NBFCs) with a strong focus on customer-centric services. The company follows a conservative and stable financial approach, ensuring… Continue reading Relationship of Sundaram finance with Nifty 50<\/span><\/a><\/p>\n","protected":false},"author":139802,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-22729","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\/22729","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\/139802"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22729"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/22729\/revisions"}],"predecessor-version":[{"id":22730,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/22729\/revisions\/22730"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22729"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22729"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22729"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}