Author Name: Jigyasha Hemant Joshi
Introduction: Jindal Stainless Limited has a stainless-steel melt capacity of 1.1 million tonnes per annum. A leader and a name synonymous with Enterprise, Excellence and Success, the company’s ethos mirrors most characteristics similar to the metal it produces. Akin to stainless steel, Jindal Stainless Limited is innovative and versatile in its thought process; strong and unrelenting in its operations.
Objective: Calculate beta of Jindal Stainless Limited and see its significance.
Data Collection: Data for 1st April 2021 to 31st March 2022 for Jindal Stainless Limited and NIFTY was taken from www.nseindia.com Friday closing prices were calculated.
By the about data collection method, we got the values for the following equation:
Y= a + b (X)
= 0.4646 – 0.3981(X)
(-0.6871)
Where Y = Jindal Stainless Returns
X= NIFTY Returns
a= 0.4646
b= -0.3981
N= 45
R^2= 0.0108
F= 0.4721
Conclusion:
The above equation tells us the relation between X & Y. If X rises by one unit Y will fall by 0.3981 & vice a verse. Figure in bracket, i.e., -0.6871 is the t-stat for b, the p-value for which 0.4957 is greater than 0.05 which means b is statically insignificant at 5% level. R^2 is 0.0108 which means 1.08% of Y is explained by X. F is 0.4721 and the p value for which is 0.4957 is greater than 0.05 it means the overall model is statically insignificant at 5% level.