{"id":23250,"date":"2025-12-20T23:10:07","date_gmt":"2025-12-20T17:40:07","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23250"},"modified":"2025-12-20T23:10:07","modified_gmt":"2025-12-20T17:40:07","slug":"relationship-of-nifty-50-with-sammaan-capital-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23250","title":{"rendered":"Relationship of Nifty 50 with Sammaan Capital Limited"},"content":{"rendered":"<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">Relationship of Nifty 50 with Sammaan Capital Limited<br \/>Author: Samarth Pawar<\/span><\/i><\/b><\/p>\n<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">Introduction:<br \/><\/span><\/i><\/b>Sammaan Capital Limited, previously known as Indiabulls Housing Finance Limited, is one of India&#8217;s premier Non-Banking Financial Companies (NBFCs). Headquartered in Gurugram, the company primarily focuses on providing mortgage-backed loans, including home loans and loans against property, to a diverse customer base ranging from individuals to large corporations.<\/p>\n<p class=\"MsoNormal\" style=\"text-align: justify\">The company underwent a significant rebranding to &#8220;Sammaan Capital&#8221; in mid-2024 to reflect its evolution into a board-governed, professionally managed institution with a diversified shareholding. It is listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) and is considered a key player in the Indian housing finance sector.<\/p>\n<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">Objective:<br \/><\/span><\/i><\/b>The primary objective of this study is to analyse the systematic risk of Sammaan Capital Ltd. relative to the broader market (Nifty 50 Index). Specifically, the study aims to:<\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\">Calculate the Beta (\u03b2) coefficient of Sammaan Capital Ltd.<\/li>\n<li class=\"MsoNormal\">Determine the stock&#8217;s volatility compared to the market benchmark.<\/li>\n<li class=\"MsoNormal\">Assess whether the stock acts as an aggressive or defensive investment during the analysed period.<\/li>\n<\/ul>\n<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">Literature Review:<br \/><\/span><\/i><\/b><span>Previous studies have widely examined the relationship between stock market indices and individual stock returns to measure systematic risk. Sharpe (1964) introduced the Capital Asset Pricing Model (CAPM), which explains how stock returns are influenced by overall market movements through the beta coefficient. Beta measures the sensitivity of a stock\u2019s returns to changes in the market index.<\/span><\/p>\n<p class=\"MsoNormal\"><span>Fama and French (1992) found that although market indices significantly impact stock returns, company-specific factors also play an important role. Their study highlighted that a lower dependence on market movements indicates stronger firm fundamentals.<\/span><\/p>\n<p class=\"MsoNormal\"><span>In the Indian context, Gupta and Basu (2018) studied the impact of Nifty 50 on financial sector stocks and observed a positive and statistically significant relationship between market returns and NBFC stocks. However, the degree of influence varied across companies, indicating differing risk profiles.<\/span><\/p>\n<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">Data Collection:<br \/><\/span><\/i><\/b>The data for this analysis was sourced from the provided financial dataset covering the period from December 1, 2024, to November 30, 2025.<\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\"><b>Stock:<\/b> Sammaan Capital Ltd. (Closing Prices).<\/li>\n<li class=\"MsoNormal\"><b>Market Index:<\/b> Nifty 50 (Closing Prices).<\/li>\n<li class=\"MsoNormal\"><b>Frequency:<\/b> Weekly closing prices were used to calculate weekly returns.<\/li>\n<li class=\"MsoNormal\"><b>Observation Count:<\/b> 48 weekly data points.<\/li>\n<li class=\"MsoNormal\"><b>Variables:<\/b>\n<ul style=\"margin-top: 0cm\" type=\"circle\">\n<li class=\"MsoNormal\"><b>Independent Variable (X):<\/b> Weekly Returns of NIFTY 50 Index.<\/li>\n<li class=\"MsoNormal\"><b>Dependent Variable (Y):<\/b> Weekly Returns of SAMMAANCAP.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">Data Analysis:<\/span><\/i><\/b><\/p>\n<p class=\"MsoListParagraphCxSpFirst\" style=\"text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: Symbol\"><span>\u00b7<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><b>Regression Equation:<\/b><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"text-align: center\" align=\"center\">\u00a0<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"text-align: center\" align=\"center\"><i><span style=\"background: #BDD6EE\">Sammaan Capital (Y) = 0.5619 + 1.7279 * Nifty 50 (X)<\/span><\/i><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\">\u00a0<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: Symbol\"><span>\u00b7<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><b>Other Variables:<\/b><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><i>T-Stat:<\/i> 3.2254<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><i>No. of Observations (n):<\/i> 48<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><i>R^2:<\/i> 0.1844 (18.44%)<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><i>F- Stat:<\/i> 10.4032<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><i>P-Value:<\/i> 0.0023<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"text-align: justify\">\u00a0<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: Symbol\"><span>\u00b7<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><b>Interpretation:<\/b><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><span lang=\"EN-US\">The regression equation above describes the relationship between the Weekly Return of Nifty 50 (X) and the share price of Sammaan Capital Limited (Y). A positive coefficient of X indicates a direct relationship. <\/span><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-align: justify\">\u00a0<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><span lang=\"EN-US\">If the weekly price of Nifty 50 rises by 1%, the weekly price of\u00a0Aadhar Housing Finance Limited will rise by 1.73% and vice versa. <\/span><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-align: justify\">\u00a0<\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><span lang=\"EN-US\">The t-stat for Beta (coefficient of Weekly Return of Nifty (X)) is 3.2254, and the p-value is 0.0023, which is less than 0.05, indicating that Beta (\u03b2) is statistically significant at the 5% level. <\/span><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\"><span lang=\"EN-US\">\u00a0<\/span><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><span lang=\"EN-US\">The number of observations is 48, and R^2 is 0.1844, meaning that 18.44% of the variation in the Weekly Return of Sammaan Capital Limited (Y) is explained by the Weekly Return of Nifty (X), while the remaining 81.56% is attributed to other factors not included in the model, such as equity fundamentals. <\/span><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\"><span lang=\"EN-US\">\u00a0<\/span><\/p>\n<p class=\"MsoListParagraphCxSpLast\" style=\"margin-left: 72.0pt;text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><span lang=\"EN-US\">This is a good sign, as the Nifty index influence is less, and the company fundamentals are strong. The F-stat is 10.4032, and the p-value is 0.0023, indicating that the overall model is statistically significant at the 5% level.<\/span><\/p>\n<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">Conclusion:<br \/><\/span><\/i><\/b>Since Beta (\u03b2) = 1.1729, <span lang=\"EN-US\">which is more than 1, the stock is an aggressive one, and one must invest in this company for the short term if Nifty is expected to rise.<\/span><\/p>\n<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">References:<br \/><\/span><\/i><\/b><span>Sharpe, W. F. (1964). Capital Asset Prices: A Theory of Market Equilibrium under Conditions of Risk. Journal of Finance, 19(3), 425\u2013442.<\/span><\/p>\n<p class=\"MsoNormal\"><span>Fama, E. F., &amp; French, K. R. (1992). The Cross-Section of Expected Stock Returns. Journal of Finance, 47(2), 427\u2013465.<\/span><\/p>\n<p class=\"MsoNormal\"><span>Gupta, R., &amp; Basu, S. (2018). Impact of Market Movements on Banking and NBFC Stocks in India. International Journal of Financial Management, 8(3), 45\u201352.<\/span><\/p>\n<p class=\"MsoNormal\"><span>National Stock Exchange of India (NSE). Nifty 50 Historical Data. NSE India.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Relationship of Nifty 50 with Sammaan Capital LimitedAuthor: Samarth Pawar Introduction:Sammaan Capital Limited, previously known as Indiabulls Housing Finance Limited, is one of India&#8217;s premier Non-Banking Financial Companies (NBFCs). Headquartered in Gurugram, the company primarily focuses on providing mortgage-backed loans, including home loans and loans against property, to a diverse customer base ranging from individuals&hellip; <a class=\"more-link\" href=\"http:\/\/www.sachdevajk.in\/?p=23250\">Continue reading <span class=\"screen-reader-text\">Relationship of Nifty 50 with Sammaan Capital Limited<\/span><\/a><\/p>\n","protected":false},"author":139908,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23250","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\/23250","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\/139908"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23250"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23250\/revisions"}],"predecessor-version":[{"id":23251,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23250\/revisions\/23251"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23250"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}