Title – Relationship of National Aluminium and Nifty50

Author – Nishigandha Vijay Gamare.

National Aluminium Company Limited, abbreviated as NALCO, is a government company having integrated and diversified operations in mining, metal and power under the ownership of Ministry of Mines, Government of India. Presently, Government of India holds a 51.5% equity in NALCO.
Headquarters: Bhubaneswar
Founded: 1981
Revenue: 8,471.84 crores INR (US$1.2 billion, 2020)
Total assets: 14,549.62 crores INR (US$2.0 billion, 2020)
Number of employees: 6,496 (April 2019)
Subsidiaries: NPCIL-NALCO Power Company Limited, Aluminium Park Pt. Ltd
Parent organizations: Government of India, Ministry of Mines

Objective –
To calculate beta of National Aluminium Ltd. And see its significance.

Data Collection –
Data for this study of National Aluminium Ltd. Has been downloaded from www.nseindia.om for nifty50 and equity of Nalco. Collected data taken from the time period of 1st April 2021 to 31st March 2022

Data Analysis :
Utilizing the Regression Add on in Microsoft Excel Data Analytics Tool below values were acquired.
R SQUARE – 0.769001
a = -103.8
b = 0.005677
f = 143.1478
p Value =.2.93E-21
Below model shows relationship between Nalco and Nifty50 weekly returns :
Nalco Weekly Returns = 103.8 + 0.005677 * (Nifty Weekly Returns)

Conclusion :
Based on the Research Methodology and Data Analysis performed we can conclude that 5% of weekly Nalco weekly returns can be explained by NIFTYFIFTY weekly returns, remaining 95%
is dependent upon Nalco’s fundamentals and policies. Also it is evident that 1% decreases in Nifty50 returns will result in Nalco system.
Since f value is lesser than the p value this model is statically good and non-significant. Risk factor of using this method for forecasting Nalco’s weekly returns are very low.