{"id":24998,"date":"2026-03-22T18:41:53","date_gmt":"2026-03-22T13:11:53","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=24998"},"modified":"2026-03-22T18:41:53","modified_gmt":"2026-03-22T13:11:53","slug":"relationship-between-nifty-50-and-shriram-finance-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=24998","title":{"rendered":"Relationship between NIFTY 50 and Shriram Finance Limited"},"content":{"rendered":"

Title:<\/span><\/b><\/p>\n

Relationship between NIFTY 50 and Shriram Finance Limited<\/span><\/p>\n

Author:<\/span><\/b><\/p>\n

Shruti Dakhinkar-59<\/span><\/p>\n

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

Shriram Finance Limited is one of the leading non-banking financial companies (NBFCs) in India. It primarily provides financing for commercial vehicles, passenger vehicles, and small businesses. The company plays a significant role in supporting the MSME sector and rural economy. Being a part of the financial services industry, its stock performance is influenced by overall market movements such as the NIFTY 50 index.<\/span><\/p>\n

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

To calculate <\/span>\u03b2<\/span> and observe its significance objective.<\/span><\/p>\n

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

Shriram showed strong growth because it gave out more loans, which increased its total business and profits beyond expectations. Better margins and controlled expenses helped profits, even though provisions were higher. The future looks positive, so it is a good stock to buy.<\/span><\/p>\n

Shriram Finance remains stable even during economic changes, as it focuses on specific areas like vehicle loans. Its careful risk management keeps the company safe, but it also slows down its growth compared to others.<\/span><\/p>\n

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

Data for NIFTY 50 and Shriram Finance Limited was downloaded from the NSE India.com \u00a0<\/span>for the period 01-01-2025 to 31-12-2025. The data was manipulated to get Friday closing prices of both NIFTY 50 and Shriram Finance Limited. Weekly returns were calculated. Weekly returns of NIFTY 50 are named as X and weekly returns of Shriram Finance were named as Y. Y was regressed on X.<\/span><\/p>\n

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

N = 48, F = 2.96, P-value = 0.09, X = 9.80, R2 <\/sup>= 0.06<\/span><\/p>\n

The regression equation is given as:<\/span><\/p>\n

Y = 10.23+ 9.80 X<\/span><\/p>\n

The equation above indicates the relationship between Market Return (X) and the return of Shriram Finance Limited (Y). The R Square value is 0.06, which means 6% of the variance in the company\u2019s return is explained by Market Return. The remaining 94% is the error for the variables which are not included in the model. The F value is 2.96. The p-value of the model (Significance F) is 0.09, which is greater than 0.05, hence the model is not statistically significant at 5% level. The p-value of the coefficient is 0.09, which is greater than 0.05, hence the market return does not have a significant impact on the company\u2019s return. The intercept is 10.23, which means if market return is 0, then the return on Shriram Finance Limited is 10.23. The coefficient of market return <\/span>\u03b2<\/span> is 9.80, which means for every 1 unit increase in market return, the company\u2019s return increases by 9.80 units. The number of observations are 48.<\/span><\/p>\n

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

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

Since <\/span>\u03b2<\/span> is greater than 1, the stock is suitable for short-term investment when NIFTY 50 is rising.<\/span><\/p>\n

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

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Gandhi, S. (2023). Shriram Finance.\u00a0PAT<\/i>,\u00a016<\/i>(17,508), 3-5<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Nit, S. R.\u00a0A COMPARATIVE STUDY OF IMPACT OF FINANCIAL PERFORMANCE AND GROWTH OF BAJAJ FINSERV AND SHRIRAM FINANCE LTD\u00a0(Doctoral dissertation, Rashtrasant Tukadoji Maharaj Nagpur University).<\/span><\/p>\n

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

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

Title: Relationship between NIFTY 50 and Shriram Finance Limited Author: Shruti Dakhinkar-59 Introduction: Shriram Finance Limited is one of the leading non-banking financial companies (NBFCs) in India. It primarily provides financing for commercial vehicles, passenger vehicles, and small businesses. The company plays a significant role in supporting the MSME sector and rural economy. Being a… Continue reading Relationship between NIFTY 50 and Shriram Finance Limited<\/span><\/a><\/p>\n","protected":false},"author":140097,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-24998","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\/24998","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\/140097"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24998"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24998\/revisions"}],"predecessor-version":[{"id":24999,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24998\/revisions\/24999"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24998"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24998"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24998"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}