{"id":23188,"date":"2025-12-20T16:15:26","date_gmt":"2025-12-20T10:45:26","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23188"},"modified":"2025-12-20T16:15:26","modified_gmt":"2025-12-20T10:45:26","slug":"relationship-of-nifty-50-with-sonata-software-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23188","title":{"rendered":"Relationship of NIFTY 50 with Sonata Software Limited"},"content":{"rendered":"

Relationship of NIFTY 50 with Sonata Software Limited<\/span><\/b><\/p>\n

Author :- Sneha Agarwal<\/span><\/b><\/p>\n

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

Sonata Software Limited is an Indian information technology services company specializing in digital transformation, cloud solutions, data analytics, and enterprise application services. The company serves global clients across industries such as retail, manufacturing, travel, and logistics. Sonata Software is listed on the National Stock Exchange (NSE) and actively participates in the Indian equity market.<\/span><\/p>\n

Objective:-<\/span><\/b><\/p>\n

To calculate the Beta of Sonata Software Limited with respect to Nifty 50 and analyze its statistical significance.<\/span><\/p>\n

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

1.\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Beta analysis and Market Risk of Indian stocks.<\/span><\/p>\n

2.\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>To emphasized the importance of market indices in explaining stock price movements.<\/span><\/p>\n

Data Collection :-<\/span><\/b><\/p>\n

The study is based on historical data collected of Sonata Software Limited and Nifty 50 was downloaded from the website (<\/span>www.nseindia.com<\/span><\/a>) for the period of 1 December 2024 to 30 November 2025 by taking Friday as closing price were found and weekly returns of Sonata Software Limited were calculated . Weekly returns of Nifty 50 were treated as the Independent variable(X) and weekly return of Sonata Software Limited were treated as the dependent variable(Y). A simple linear regression was conducted by regression Y on X.<\/span><\/p>\n

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

Regression Equation<\/span><\/p>\n

\n

Sonata Weekly Return (Y) = .998(X) . Nifty Weekly Returns(X)- 1.225<\/span><\/p>\n<\/div>\n

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

Regression Statistics<\/span><\/p>\n\n\n\n\n\n\n\n\n\n\n
\n

Beta (Slope Coefficient)<\/span><\/p>\n<\/td>\n

\n

0.998<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

Intercept<\/span><\/p>\n<\/td>\n

\n

-1.22<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

t- Statistics (Beta)<\/span><\/p>\n<\/td>\n

\n

18.02<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

p- value (Beta)<\/span><\/p>\n<\/td>\n

\n

9.64<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

No. of observation (n)<\/span><\/p>\n<\/td>\n

\n

49<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

R Square<\/span><\/p>\n<\/td>\n

\n

0.874<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

f- Statistic<\/span><\/p>\n<\/td>\n

\n

324.79<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\u00a0<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

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

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

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The beta of 0.998 indicates that Sonata Software\u2019s stock moves almost in tandem with the Nifty 50 index, suggesting a market-neutral behavior.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The t-statistic of 18.02 and the extremely low p-value confirm that the beta is statistically significant.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The R\u00b2 value of 0.874 implies that approximately 87.4% of the variation in Sonata Software\u2019s weekly returns is explained by the Nifty 50 returns, indicating a strong linear relationship.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The intercept of \u20131.22 suggests a slight negative bias in returns when the market return is zero, though it is not statistically significant (p > 0.05).<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The high F-statistic further validates the overall significance of the regression model.<\/span><\/p>\n

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

\u00a0<\/span>Conclusion :-<\/b><\/span><\/p>\n

As the Beta value of Sonata Software Limited Is approximately 1 it indicates that the company is good for short term investment it means Nifty is going to rise in short term.<\/span><\/p>\n

The stock exhibits market-level volatility and is likely to mirror the broader market movements. It is suitable for investors seeking exposure to the market without taking on excessive risk. Given its strong correlation with the Nifty 50, Sonata Software may be a reliable component in diversified portfolios, especially during stable or bullish market conditions.<\/span><\/p>\n

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

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

National Stock Exchange of India (NSE).<\/span><\/p>\n

Sharpe, W. F. (1964). Capital Asset Prices: A Theory of Market Equilibrium under Conditions of Risk. Journal of Finance.<\/span><\/p>\n

Fama, E. F. (1970). Efficient Capital Markets: A Review of Theory and Empirical Work. Journal of Finance.<\/span><\/p>\n

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

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

Relationship of NIFTY 50 with Sonata Software Limited Author :- Sneha Agarwal Introduction:- Sonata Software Limited is an Indian information technology services company specializing in digital transformation, cloud solutions, data analytics, and enterprise application services. The company serves global clients across industries such as retail, manufacturing, travel, and logistics. Sonata Software is listed on the… Continue reading Relationship of NIFTY 50 with Sonata Software Limited<\/span><\/a><\/p>\n","protected":false},"author":139950,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23188","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\/23188","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\/139950"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23188"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23188\/revisions"}],"predecessor-version":[{"id":23189,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23188\/revisions\/23189"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23188"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23188"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23188"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}