Topic Name: Relationship of Steel Authority of India Limited with NIFTY.
Author: Smith Hemraj Patodekar
Introduction:
Steel Authority of India Limited is a central public sector undertaking based in New Delhi, India. It is under the ownership of the Ministry of Steel, Government of India with an annual turnover of 105,398 Crore for the fiscal year 2022-23. Incorporated on 24 January 1973, SAIL has 59,350 employees. Steel Authority of India Limited (SAIL) is one of the largest steel-making companies in India and one of the Maharatnas of the country’s Central Public Sector Enterprises. SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials. SAIL manufactures and sells a broad range of steel products
Objective:
To calculate beta of Steel Authority of India Limited and find out its significance.
Views & reviews:
Soma Mondal, Chairman
As a responsible corporate citizen, our Company has drawn its environmental vision in consonance with the Corporate Environmental Policy, which not only addresses the need for compliance with stipulated norms but also emphasises striving to go beyond.
Soma Mondal, Chairman
The Board of Directors wish to place on record their appreciation for the sincere, untiring & dedicated efforts and contribution made by every member of the SAIL Family. The Directors acknowledge with deep sense of appreciation, the valuable guidance, support and co-operation received from Government of India, particularly Ministry of Steel, Regulatory & Statutory Authorities, Ministry of Environment, Forests, & Climate Change, DIPAM, Niti Aayog, Department of Public Enterprises, Railways, State Governments, Electricity Boards, etc. The Board also convey its gratitude to all its stakeholders, including Members, Investors, Customers, Vendors, Bankers and Consultants for their continued support and confidence reposed in the Organisation.
Data collection:
Data for This Period (1/7/2022 to 30/6/2023) has been downloaded from NSE India Site and Weekly Closing Prices Where Found out Then Weekly Returns of Nifty a Weekly Return of Steel Authority of India Limited were Calculated (Nifty Returns Taken as X and Equity Returns Taken As Y) Y Was Regress On X.
Data Analysis:
Equation “Y=0.36-0.069X+e”
(tstat for b= -0.20)
R2 =0.00085, F = 0.041
The above equation do not show any relationship between nifty 50 (X) and Steel Authority of India Limited (Y). Steel Authority of India Limited runs on own fundamentals the t stat for b is -0.20not statistically significant at 5 % level, R2is 0.00085which means 0.085% Y is explained by X. 99.91% is the error in model.0.041 Which is less than the table value which means overall them model is not statistically significant at 5% level.
Conclusion:
As Beta is less than 1, the share is good for long term.