{"id":23226,"date":"2025-12-20T17:36:31","date_gmt":"2025-12-20T12:06:31","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23226"},"modified":"2025-12-20T17:36:31","modified_gmt":"2025-12-20T12:06:31","slug":"relationship-of-nifty-50-with-shriram-finance-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23226","title":{"rendered":"Relationship of Nifty 50 with Shriram Finance Limited"},"content":{"rendered":"<p class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%;font-family: 'Calibri',sans-serif\">Author: Sejal Jain<\/p>\n<p><\/span><\/b><b><span style=\"font-size: 12.0pt;line-height: 107%;font-family: 'Calibri',sans-serif\">Introduction<\/span><\/b><\/p>\n<p class=\"MsoNormal\"><span style=\"font-family: 'Calibri',sans-serif\">Shriram Finance Limited is one of India\u2019s leading non-banking financial companies (NBFCs), offering a wide range of financial services including commercial vehicle loans, personal loans, MSME finance, two-wheeler loans, and deposit products. The company has a strong presence across urban and rural India, catering largely to underserved and middle-income segments. With a robust branch network and diversified loan portfolio, Shriram Finance plays an important role in enhancing credit access and financial inclusion. As a listed entity on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), the company attracts significant investor interest in the Indian financial market.<\/span><\/p>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%;font-family: 'Calibri',sans-serif\">Objective of the Study<\/span><\/b><\/p>\n<p class=\"MsoNormal\"><span style=\"font-family: 'Calibri',sans-serif\">The primary objective of this study is to analyse the <b>systematic risk<\/b> of Shriram Finance Limited in comparison with the broader market represented by the <b>Nifty 50 Index<\/b>. The specific objectives are:<\/span><\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\"><span style=\"font-family: 'Calibri',sans-serif\">To calculate the Beta (\u03b2) coefficient of Shriram Finance Limited<\/span><\/li>\n<li class=\"MsoNormal\"><span style=\"font-family: 'Calibri',sans-serif\">To evaluate the volatility of the stock relative to the market benchmark<\/span><\/li>\n<li class=\"MsoNormal\"><span style=\"font-family: 'Calibri',sans-serif\">To determine whether the stock behaves as an aggressive or defensive investment during the study period<\/span>\u00a0<\/li>\n<\/ul>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%;font-family: 'Calibri',sans-serif\">Literature Review<\/span><\/b><\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\"><b><span style=\"font-family: 'Calibri',sans-serif\">Modern Portfolio Theory (MPT)<\/span><\/b><span style=\"font-family: 'Calibri',sans-serif\"> explains that the inclusion of low-beta or defensive stocks helps in reducing overall portfolio risk while maintaining stable returns.<\/span><\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-family: 'Calibri',sans-serif\">Systematic and Unsystematic Risk<\/span><\/b><span style=\"font-family: 'Calibri',sans-serif\">: Systematic risk refers to market-related risk that cannot be eliminated through diversification, whereas unsystematic risk is company-specific and can be reduced through a diversified portfolio.<\/span><\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-family: 'Calibri',sans-serif\">Capital Asset Pricing Model (CAPM)<\/span><\/b><span style=\"font-family: 'Calibri',sans-serif\"> establishes Beta as a measure of systematic risk and explains the relationship between expected returns and market movements.<\/span><b><span style=\"font-family: 'Calibri',sans-serif\">\u00a0<\/span><\/b><\/li>\n<\/ul>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%;font-family: 'Calibri',sans-serif\">Data Collection<\/span><\/b><\/p>\n<p class=\"MsoNormal\"><span style=\"font-family: 'Calibri',sans-serif\">The data for this study has been collected from the provided spreadsheet covering the period from <b>1 December 2024 to 30 November 2025<\/b>.<\/span><\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\"><b><span style=\"font-family: 'Calibri',sans-serif\">Stock<\/span><\/b><span style=\"font-family: 'Calibri',sans-serif\">: Shriram Finance Limited (Weekly Closing Prices)<\/span><\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-family: 'Calibri',sans-serif\">Market Index<\/span><\/b><span style=\"font-family: 'Calibri',sans-serif\">: Nifty 50 Index (Weekly Closing Prices)<\/span><\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-family: 'Calibri',sans-serif\">Frequency<\/span><\/b><span style=\"font-family: 'Calibri',sans-serif\">: Weekly data<\/span><\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-family: 'Calibri',sans-serif\">Number of Observations<\/span><\/b><span style=\"font-family: 'Calibri',sans-serif\">: 48 weekly observations<\/span><\/li>\n<\/ul>\n<p class=\"MsoNormal\"><span style=\"font-family: 'Calibri',sans-serif\">Weekly returns were calculated using closing prices for both the stock and the market index.<\/span><\/p>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%;font-family: 'Calibri',sans-serif\">Variables<\/span><\/b><\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\"><b><span style=\"font-family: 'Calibri',sans-serif\">Independent Variable (X)<\/span><\/b><span style=\"font-family: 'Calibri',sans-serif\">: Weekly Returns of Nifty 50 Index<\/span><\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-family: 'Calibri',sans-serif\">Dependent Variable (Y)<\/span><\/b><span style=\"font-family: 'Calibri',sans-serif\">: Weekly Returns of Shriram Finance Limited<\/span><\/li>\n<\/ul>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%;font-family: 'Calibri',sans-serif\">Data Analysis<\/span><\/b><\/p>\n<p class=\"MsoNormal\"><b><span style=\"font-family: 'Calibri',sans-serif\">Regression Equation<\/span><\/b><\/p>\n<p class=\"MsoNormal\"><!-- [if gte msEquation 12]&gt;--><span style='font-family:\"Calibri\",sans-serif'>Shriram<br \/>\n   Finance Limited (Y)<\/span><i><span style='font-family:\"Cambria Math\",serif'>=-0.6028+1.0436\u00d7<\/span><\/i><span style='font-family:\"Calibri\",sans-serif'>Nifty 50<br \/>\n   (X)<\/span><!-- [if !msEquation]--><span style=\"font-size: 11.0pt;line-height: 107%;font-family: 'Aptos',sans-serif\"><!-- [if gte vml 1]&gt;--><\/p>\n<p><!-- [if !vml]--><img loading=\"lazy\" decoding=\"async\" src=\"image\/png;base64,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\" width=\"381\" height=\"19\" \/><\/span><br \/><!--[endif]--><\/p>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%;font-family: 'Calibri',sans-serif\">Other Variables<\/span><\/b><\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\"><b><span style=\"font-family: 'Calibri',sans-serif\">Beta (\u03b2)<\/span><\/b><span style=\"font-family: 'Calibri',sans-serif\">: 1.0436<\/span><\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-family: 'Calibri',sans-serif\">T-Statistic<\/span><\/b><span style=\"font-family: 'Calibri',sans-serif\">: 2.502<\/span><\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-family: 'Calibri',sans-serif\">Number of Observations (n)<\/span><\/b><span style=\"font-family: 'Calibri',sans-serif\">: 48<\/span><\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-family: 'Calibri',sans-serif\">R\u00b2<\/span><\/b><span style=\"font-family: 'Calibri',sans-serif\">: 0.1200 (12%)<\/span><\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-family: 'Calibri',sans-serif\">F-Statistic<\/span><\/b><span style=\"font-family: 'Calibri',sans-serif\">: 6.261<\/span><\/li>\n<li class=\"MsoNormal\"><b><span style=\"font-family: 'Calibri',sans-serif\">P-Value<\/span><\/b><span style=\"font-family: 'Calibri',sans-serif\">: 0.0160<\/span><\/li>\n<\/ul>\n<p class=\"MsoNormal\"><b><span style=\"font-size: 12.0pt;line-height: 107%;font-family: 'Calibri',sans-serif\">Interpretation<\/span><\/b><\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\"><span style=\"font-family: 'Calibri',sans-serif\">The regression equation above explains the relationship between the <b>weekly returns of the Nifty 50 Index (X)<\/b> and the <b>weekly returns of Shriram Finance Limited (Y)<\/b>. The positive Beta coefficient indicates a <b>direct relationship<\/b> between market movements and the stock\u2019s returns.<\/span><\/li>\n<li class=\"MsoNormal\"><span style=\"font-family: 'Calibri',sans-serif\">If the weekly return of the Nifty 50 increases by <b>1%<\/b>, the weekly return of <b>Shriram Finance Limited increases by approximately 1.04%<\/b>, indicating that the stock is <b>more sensitive to market movements<\/b>.<\/span><\/li>\n<li class=\"MsoNormal\"><span style=\"font-family: 'Calibri',sans-serif\">The t-statistic value of <b>2.502<\/b> and p-value of <b>0.016<\/b>, which is less than 0.05, indicate that the <b>Beta coefficient is statistically significant at the 5% level<\/b>.<\/span><\/li>\n<\/ul>\n<p style=\"margin-left: 36.0pt;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-size: 10.0pt;font-family: Symbol\"><span>\u00b7<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><span style=\"font-family: 'Calibri',sans-serif\">The R\u00b2 value of <strong data-start=\"1420\" data-end=\"1428\"><span style=\"font-family: 'Calibri',sans-serif\">0.12<\/span><\/strong> indicates that <strong data-start=\"1444\" data-end=\"1468\"><span style=\"font-family: 'Calibri',sans-serif\">12% of the variation<\/span><\/strong> in the weekly returns of Shriram Finance Limited is explained by movements in the Nifty 50 Index, while the remaining <strong data-start=\"1587\" data-end=\"1594\"><span style=\"font-family: 'Calibri',sans-serif\">88%<\/span><\/strong> of the variation is due to company-specific factors such as operational performance, credit quality, management efficiency, and industry conditions.<\/span><\/p>\n<p style=\"margin-left: 36.0pt;text-indent: -18.0pt\" data-start=\"1749\" data-end=\"1904\"><!-- [if !supportLists]--><span style=\"font-size: 10.0pt;font-family: Symbol\"><span>\u00b7<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><span style=\"font-family: 'Calibri',sans-serif\">The F-statistic value of <strong data-start=\"1774\" data-end=\"1783\"><span style=\"font-family: 'Calibri',sans-serif\">6.261<\/span><\/strong> with a p-value of <strong data-start=\"1802\" data-end=\"1811\"><span style=\"font-family: 'Calibri',sans-serif\">0.016<\/span><\/strong> confirms that the overall regression model is <strong data-start=\"1858\" data-end=\"1887\"><span style=\"font-family: 'Calibri',sans-serif\">statistically significant<\/span><\/strong> at the 5% level.<\/span><span style=\"font-family: Calibri, sans-serif\">\u00a0<\/span><\/p>\n<p class=\"MsoListParagraphCxSpFirst\" style=\"line-height: normal\"><b><span style=\"font-size: 12.0pt;font-family: 'Calibri',sans-serif\">Conclusion<\/span><\/b><\/p>\n<p class=\"MsoListParagraphCxSpLast\" style=\"text-indent: -18.0pt;line-height: normal\"><!-- [if !supportLists]--><span style=\"font-size: 10.0pt;font-family: Symbol\"><span>\u00b7<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><span style=\"font-size: 12.0pt;font-family: 'Calibri',sans-serif\">Since the <b>Beta (\u03b2) value is 1.0436<\/b>, which is <b>greater than 1<\/b>, Shriram Finance Limited is classified as an <b>aggressive stock<\/b>. This indicates that the stock is <b>more volatile than the market<\/b> and tends to amplify market movements. Therefore, Shriram Finance Limited may be suitable for investors with a <b>higher risk appetite<\/b>, particularly when positive market conditions are expected.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Author: Sejal Jain Introduction Shriram Finance Limited is one of India\u2019s leading non-banking financial companies (NBFCs), offering a wide range of financial services including commercial vehicle loans, personal loans, MSME finance, two-wheeler loans, and deposit products. The company has a strong presence across urban and rural India, catering largely to underserved and middle-income segments. With&hellip; <a class=\"more-link\" href=\"http:\/\/www.sachdevajk.in\/?p=23226\">Continue reading <span class=\"screen-reader-text\">Relationship of Nifty 50 with Shriram Finance Limited<\/span><\/a><\/p>\n","protected":false},"author":139955,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23226","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\/23226","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\/139955"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23226"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23226\/revisions"}],"predecessor-version":[{"id":23227,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23226\/revisions\/23227"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23226"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23226"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23226"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}