{"id":23126,"date":"2025-12-19T23:09:50","date_gmt":"2025-12-19T17:39:50","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23126"},"modified":"2025-12-19T23:09:50","modified_gmt":"2025-12-19T17:39:50","slug":"shriram-finance","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23126","title":{"rendered":"Shriram Finance"},"content":{"rendered":"<h1><span lang=\"EN-US\">Relationship of Nifty 50 with Shriram Finance Ltd<\/span><\/h1>\n<p class=\"MsoNormal\"><b><span lang=\"EN-US\">By Sushant Jadhav <\/span><\/b><\/p>\n<div class=\"MsoNormal\" style=\"text-align: center\" align=\"center\">\n<hr align=\"center\" size=\"2\" width=\"100%\" \/><\/div>\n<p class=\"MsoNormal\"><b><span lang=\"EN-US\">About Shriram Finance<\/span><\/b><\/p>\n<p class=\"MsoNormal\"><span lang=\"EN-US\">Shriram Finance Ltd is one of India\u2019s largest and most trusted non-banking financial companies (NBFCs). The company has built its reputation by serving millions of customers across the country, particularly in semi-urban and rural markets where access to formal banking is limited. Its core business revolves around <b>commercial vehicle finance<\/b>, but it has diversified into <b>personal loans, SME financing, and other retail financial services<\/b>. Shriram Finance is recognized for its customer-centric approach, strong risk management practices, and its ability to provide financial solutions to underserved segments of society.<\/span><\/p>\n<div class=\"MsoNormal\" style=\"text-align: center\" align=\"center\">\n<hr align=\"center\" size=\"2\" width=\"100%\" \/><\/div>\n<p class=\"MsoNormal\"><b><span lang=\"EN-US\">Objectives of the Study<\/span><\/b><\/p>\n<p class=\"MsoNormal\"><span lang=\"EN-US\">The primary objective of this study is to <b>calculate the beta of Shriram Finance Ltd<\/b> and evaluate its statistical significance in relation to the NIFTY 50 index. Beta is a measure of volatility and risk compared to the broader market. By analyzing this relationship, we aim to understand how Shriram Finance\u2019s stock price movements are influenced by the NIFTY 50 and whether it is suitable for long-term investment.<\/span><\/p>\n<div class=\"MsoNormal\" style=\"text-align: center\" align=\"center\">\n<hr align=\"center\" size=\"2\" width=\"100%\" \/><\/div>\n<p class=\"MsoNormal\"><b><span lang=\"EN-US\">Data Collection<\/span><\/b><\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\"><b><span lang=\"EN-US\">Period considered:<\/span><\/b><span lang=\"EN-US\"> 01-Dec-2024 to 30-Nov-2025<\/span><\/li>\n<li class=\"MsoNormal\"><b><span lang=\"EN-US\">Data source:<\/span><\/b><span lang=\"EN-US\"> Historical closing prices of Shriram Finance Ltd and the NIFTY 50 index.<\/span><\/li>\n<li class=\"MsoNormal\"><b><span lang=\"EN-US\">Frequency:<\/span><\/b><span lang=\"EN-US\"> Weekly data filtered to <b>Friday closing prices<\/b> for consistency.<\/span><\/li>\n<li class=\"MsoNormal\"><span lang=\"EN-US\">This dataset ensures comparability and reduces noise from daily fluctuations.<\/span><\/li>\n<\/ul>\n<div class=\"MsoNormal\" style=\"text-align: center\" align=\"center\">\n<hr align=\"center\" size=\"2\" width=\"100%\" \/><\/div>\n<p class=\"MsoNormal\"><b><span lang=\"EN-US\">Data Analysis<\/span><\/b><\/p>\n<p class=\"MsoNormal\"><span lang=\"EN-US\">The regression analysis was conducted with <b>Shriram Finance\u2019s closing price as the dependent variable<\/b> and <b>NIFTY 50 index as the independent variable<\/b>.<\/span><\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\"><b><span lang=\"EN-US\">Regression Equation:<\/span><\/b><span lang=\"EN-US\"><br \/>[ y = -5447.77 + 0.3244x ]<br \/>Here, (y) represents Shriram Finance\u2019s closing price, and (x) represents the NIFTY 50 index value.<\/span><\/li>\n<li class=\"MsoNormal\"><b><span lang=\"EN-US\">Beta (Slope = 0.3244):<\/span><\/b><span lang=\"EN-US\"><br \/>Indicates that for every <b>1-point increase in NIFTY 50<\/b>, Shriram Finance\u2019s stock price increases by approximately <b>0.3244 points<\/b>. Since beta is less than 1, Shriram Finance is <b>less volatile<\/b> compared to the market.<\/span><\/li>\n<li class=\"MsoNormal\"><b><span lang=\"EN-US\">Intercept (-5447.77):<\/span><\/b><span lang=\"EN-US\"><br \/>Theoretically represents the value of Shriram Finance\u2019s stock when NIFTY 50 is zero. While not practically meaningful, it is part of the regression equation.<\/span><\/li>\n<li class=\"MsoNormal\"><b><span lang=\"EN-US\">t-statistic (7.0894) and p-value (6.69E-09):<\/span><\/b><span lang=\"EN-US\"><br \/>The beta coefficient is <b>highly significant<\/b>, confirming that the relationship between Shriram Finance and NIFTY 50 is statistically reliable.<\/span><\/li>\n<li class=\"MsoNormal\"><b><span lang=\"EN-US\">R\u00b2 = 0.5221:<\/span><\/b><span lang=\"EN-US\"><br \/>About <b>52.21% of the variation in Shriram Finance\u2019s stock price is explained by NIFTY 50 movements<\/b>. The remaining variation is due to other factors not included in the model.<\/span><\/li>\n<li class=\"MsoNormal\"><b><span lang=\"EN-US\">F-statistic = 50.259 (p-value &lt; 0.01):<\/span><\/b><span lang=\"EN-US\"><br \/>The overall regression model is <b>statistically significant<\/b>, meaning the relationship is not due to chance.<\/span><\/li>\n<\/ul>\n<div class=\"MsoNormal\" style=\"text-align: center\" align=\"center\">\n<hr align=\"center\" size=\"2\" width=\"100%\" \/><\/div>\n<p class=\"MsoNormal\"><b><span lang=\"EN-US\">References<\/span><\/b><\/p>\n<p class=\"MsoNormal\"><span lang=\"EN-US\">Saladi Lokesh, K Lalitha (2025). <i>Financial Performance of Non-Banking Finance Companies (NBFCs): Muthoot Finance<\/i>. Issue Vol. 13 No. 2 (2025): Volume 13 Issue 2.<\/span><\/p>\n<div class=\"MsoNormal\" style=\"text-align: center\" align=\"center\">\n<hr align=\"center\" size=\"2\" width=\"100%\" \/><\/div>\n<p class=\"MsoNormal\"><b><span lang=\"EN-US\">Conclusion<\/span><\/b><\/p>\n<p class=\"MsoNormal\"><span lang=\"EN-US\">The analysis shows that <b>Shriram Finance Ltd has a beta of 0.3244<\/b>, which is significantly less than 1. This means the stock is <b>less volatile than the NIFTY 50 index<\/b>. Investors can expect Shriram Finance to move in the same direction as the market, but with smaller fluctuations.<\/span><\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\"><b><span lang=\"EN-US\">Implication:<\/span><\/b><span lang=\"EN-US\"> Shriram Finance Ltd is a <b>stable investment option<\/b>, suitable for long-term investors who prefer lower risk compared to the broader market.<\/span><\/li>\n<li class=\"MsoNormal\"><span lang=\"EN-US\">The statistical significance of the regression confirms that the relationship is strong and reliable.<\/span><\/li>\n<\/ul>\n<div class=\"MsoNormal\" style=\"text-align: center\" align=\"center\">\n<hr align=\"center\" size=\"2\" width=\"100%\" \/><\/div>\n<p class=\"MsoNormal\"><span lang=\"EN-US\">\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Relationship of Nifty 50 with Shriram Finance Ltd By Sushant Jadhav About Shriram Finance Shriram Finance Ltd is one of India\u2019s largest and most trusted non-banking financial companies (NBFCs). The company has built its reputation by serving millions of customers across the country, particularly in semi-urban and rural markets where access to formal banking is&hellip; <a class=\"more-link\" href=\"http:\/\/www.sachdevajk.in\/?p=23126\">Continue reading <span class=\"screen-reader-text\">Shriram Finance<\/span><\/a><\/p>\n","protected":false},"author":139929,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23126","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\/23126","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\/139929"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23126"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23126\/revisions"}],"predecessor-version":[{"id":23127,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23126\/revisions\/23127"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23126"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23126"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23126"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}