{"id":23256,"date":"2025-12-20T23:39:29","date_gmt":"2025-12-20T18:09:29","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23256"},"modified":"2025-12-20T23:39:29","modified_gmt":"2025-12-20T18:09:29","slug":"relationship-between-saregama-india-limited-and-nifty-50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23256","title":{"rendered":"Relationship between Saregama India Limited and NIFTY 50"},"content":{"rendered":"

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Relationship between Saregama India Limited and NIFTY 50<\/span><\/b><\/p>\n

Author: <\/span><\/b>Shruti Karosiya<\/span>\u00a0<\/span><\/b><\/b><\/p>\n


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

Saregama India Limited is among India\u2019s oldest and most prominent music and entertainment companies. Historically recognized as the nation\u2019s first music label, the company has played a pioneering role in the development of recorded Indian music. Over the past century, Saregama has transformed from a conventional record label into a diversified content enterprise with operations spanning music production, films, television, and digital entertainment products. This evolution reflects its ability to adapt to changing consumer preferences and technological advancements while maintaining its strong legacy in the Indian entertainment industry.<\/span><\/p>\n

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Objective of the Study<\/span><\/u><\/b><\/p>\n

Calculation of Beta and observe its significant.<\/span><\/u><\/b><\/p>\n

Literature Review<\/span><\/u><\/b><\/p>\n

Driving Digital Transformation for Competitive Distinctiveness: The Case of Saregama Carvaan 2.0
Roy and Banerjee (2021) examine how Saregama India Limited successfully managed digital transformation in the post-COVID period through its product Saregama Carvaan 2.0. Initially launched in 2018 as a physical music player featuring over 5,000 retro songs, the product evolved by incorporating digital features such as access to more than 200 podcast stations. The study highlights the company\u2019s strategic investments in Hindi and Bhojpuri music, development of a global platform for content creators, and expansion into original film content through Yoodlee Films on platforms like Netflix and Hotstar. By combining physical nostalgia with modern digital capabilities, Saregama enhanced customer value while preserving the tactile appeal of its hardware products. The firm\u2019s licensing of its extensive intellectual property catalogue across platforms such as YouTube, Gaana, and JioSaavn further strengthened its competitive positioning. Operational integration of physical and digital elements enabled Saregama to retain customer loyalty across generations and achieve differentiation in a rapidly evolving music industry.<\/span><\/p>\n

Stock Performance of Selected Indian Entertainment Companies: An Empirical Study
Deb and Mora Reddy (2025) analyze the stock performance of selected Indian entertainment companies listed on the Bombay Stock Exchange over a ten-year period from 2015 to 2024. Using secondary data and quantitative techniques such as mean\u2013variance analysis, standard deviation, coefficient of variation, correlation, and regression models, the study identifies significant differences in return patterns and risk exposure across firms. The findings indicate that companies like Network18 and Saregama Limited generate relatively higher returns with moderate correlation to market trends, whereas firms such as PVR INOX Limited and Dish TV exhibit higher volatility and weaker return predictability. The study offers important insights for investors, policymakers, and industry participants navigating India\u2019s evolving entertainment sector.<\/span><\/p>\n

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Data Collection<\/span><\/u><\/b><\/p>\n

Historical data for Saregama India Limited and the NIFTY 50 index was obtained from the NSE website for the period from 01\/12\/2024 to 30\/11\/2025. The collected data was processed to extract Friday closing prices for the calculation of weekly returns.<\/span><\/p>\n

Data Analysis<\/span><\/u><\/b><\/p>\n

Regression Equation with t-statistics for Beta (\u03b2)<\/span><\/p>\n

Weekly Return on Equity = \u22120.182 + 0.109<\/span><\/p>\n

N = 48 | R\u00b2 = 0.093 | F = 4.758 | p-value = 0.034<\/span><\/p>\n

The regression equation indicates that a one-unit increase in the NIFTY\u2019s weekly return leads to an average increase of approximately 0.109 units in the stock\u2019s weekly return. The positive slope coefficient (Beta) suggests that the stock generally moves in the same direction as the market. The intercept value of \u22120.182 implies that when the NIFTY\u2019s weekly return is zero, the expected return on the equity is around \u22120.182, indicating a slight negative base return under flat market conditions.<\/span><\/p>\n

The t-statistic for Beta is approximately 2.18 with a corresponding p-value of about 0.034, which is below the 0.05 significance level. This confirms that the beta coefficient is statistically significant, indicating that the relationship between the stock\u2019s returns and NIFTY returns is unlikely to be due to random variation. The R\u00b2 value of 0.093 shows that nearly 9.3% of the variation in the stock\u2019s weekly returns is explained by movements in the NIFTY index, while the remaining 90.7% is attributable to other factors such as firm-specific developments, sectoral influences, or broader economic conditions.<\/span><\/p>\n

The F-statistic value of 4.758 with a p-value of 0.034 further establishes that the overall regression model is statistically significant at the 5% level. Although the explanatory power of the model is limited due to the low R\u00b2 value, the results indicate that market movements have a meaningful directional impact on the stock\u2019s returns, even though most short-term fluctuations are driven by non-market factors.<\/span><\/p>\n

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Conclusion<\/span><\/u><\/b><\/p>\n

As the beta value (2.18) exceeds 1, the stock exhibits greater volatility than the market. This suggests that Saregama India Limited may be suitable for short-term investment during periods of rising market conditions, while also carrying higher risk during market downturns.<\/span><\/p>\n

References<\/span><\/u><\/b><\/p>\n

Roy, S., & Banerjee, S. (2021). Driving digital transformation for competitive distinctiveness: The case of Saregama Carvaan 2.0.<\/i> In A. Omrane (Ed.), New business models in the course of global crises in South Asia<\/i> (pp. 141\u2013158).<\/span><\/p>\n

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Deb, I., & Mora, R. (2025). Stock Performance of Selected Indian Entertainment Companies: An Empirical Study.<\/i> IUP Journal of Accounting Research & Audit Practices, Vol. 24, Issue 3, p. 432.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00a0 Relationship between Saregama India Limited and NIFTY 50 Author: Shruti Karosiya\u00a0 Introduction Saregama India Limited is among India\u2019s oldest and most prominent music and entertainment companies. Historically recognized as the nation\u2019s first music label, the company has played a pioneering role in the development of recorded Indian music. Over the past century, Saregama has… Continue reading Relationship between Saregama India Limited and NIFTY 50<\/span><\/a><\/p>\n","protected":false},"author":139977,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23256","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\/23256","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\/139977"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23256"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23256\/revisions"}],"predecessor-version":[{"id":23257,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23256\/revisions\/23257"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23256"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23256"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23256"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}