Title – Relationship of Steel Authority of India (SAIL) Ltd with Nifty Fifty
Author: Shweta Jadhav MBA IN HRM
Introduction –
Steel Authority of India Limited is a government-owned steel producer based in New Delhi, India. It is under the ownership of the Ministry of Steel, Government of India with an annual turnover of INR 68,452 Crore for the fiscal year 2020–21. Incorporated on 24 January 1973, SAIL has 61,989 employees. SAIL operates and owns five integrated steel plants at Bhilai, Rourkela, Durgapur, Bokaro and Burnpur (Asansol) and three special steel plants at Salem, Durgapur and Bhadravathi. It also owns a Ferro Alloy plant at Chandrapur. As a part of its global ambition, the company is undergoing a massive expansion and modernisation programme involving upgrading and building new facilities with an emphasis on the state of the art green technology. According to a recent survey, SAIL is one of India’s fastest growing Public Sector Units. Besides, it has an R&D Centre for Iron & Steel (RDCIS), a Centre for Engineering in Ranchi, Jharkhand.
Objectives:
Relationship of SAIL with Nifty Fifty
To calculate Beta of SAIL and see its significance.
Data Collection-
Closing Friday Price were calculated by:
Data for this company (SAIL) has collected from NSE. Date and closing prices have been downloaded from nseindia.com
Friday closing prices were calculated in week-returns
Indices is taken as (X) and Equity is taken by (Y)
Friday values and insert the weekly return column with formula (C3-C2)/C2*100
Data Analysis-
Regression Statistics
Multiple R 0.641408
R Square 0.411404
Adjusted R Square 0.398027
Standard Error 16.7611
Observations 46

ANOVA
df SS MS F Significance F
Regression 1 8639.899 8639.899 30.75414768 1.56E-06
Residual 44 12361.12 280.9344
Total 45 21001.01

Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept -71 15.30956 -4.65 3E-05 -102 -40.3 -102 -40.3
X Variable 1 0.01 0.000937 5.55 1.56E-06 0.003 0.007 0 0.007

Y=a+bx
A= -71.18355442
B= 0.005195861
Y= -71.18355442-0.005195861
T-stat= 5.55
Since P value is more than 0.05 so it is not significant @5%