Title: Relationship between Nifty and JSW Steel
Author: JENIL NIKET SALEJKAR
Introduction: The US$ 23 billion JSW Group is ranked among India’s leading business houses. JSW’s innovative and sustainable presence in various sectors including Steel, Energy, Infrastructure, Cement, Paints, Venture Capital and Sports is helping the Group play an important role in driving India’s economic growth. The Group strives for excellence by leveraging its strengths & capabilities including a successful track-record of executing large capital-intensive & technically complex projects, differentiated product-mix, state-of-the-art manufacturing facilities and greater focus on pursuing sustainable growth.
With a culturally diverse workforce spread across India, USA, Europe, and Africa, JSW Group directly employs nearly 40,000 people.
It also has a strong social development focus aimed at empowering local communities residing around its Plant & Port locations. JSW Group is known to create value for all its stakeholders by combining its growth roadmap, superior execution capabilities and a relentless drive to be #BetterEveryday.
Objective: to calculate beta and its significance
Views and reviews: JSW Steel arm Periama completes JSW USA’s acquisition
- JSW Steel on Tuesday said its arm Periama Holdings LLC (Periama) has completed the acquisition of JSW USA by purchasing the remaining 10 per cent stake in its “common stock”. Periama Holdings LLC (Periama) is a wholly-owned subsidiary of domestic player JSW Steel.
“Periama on December 18, 2023 (US time) completed the acquisition by purchase of the remaining 10 per cent stake in the Common stock of JSW USA,” the filing said.
JSW Steel foreign subsidiary to raise $145 mn from long-term bonds; stock rises
- JSW Steel USA Ohio Inc, a wholly-owned indirect subsidiary of JSW Steel, has disclosed its decision to consider a proposal for raising long-term funds of around 30 years tenor for an aggregate principal amount of $145 million.
Data collection: The data for this period has been downloaded from the site nseindian.com Friday closing price has been calculated out of which returns have been found out. Weekly report of Nifty is x and of equity is y.
Data analysis: Equation is JSW STEEL = 4.89+1.38NIFTY
The regression analysis suggests that there is a statistically significant positive relationship between the independent variable(s) and the dependent variable. However, the model only explains a moderate amount of the variance in the dependent variable.
- A beta of 1.38 indicates that JSW Steel is 38% more volatile than the NIFTY index.
- This means that for every 1% change in the NIFTY, JSW Steel’s price is expected to change by 1.38%.
- A beta greater than 1 suggests that the stock is more volatile than the market, while a beta less than 1 suggests it’s less volatile.
Conclusion: here the beta is greater than 1 so JSW STEEL is better for the long term investment.
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