Title: Relationship between Nifty and Jindal Steel and Power
Author: Janhavi Vijay Kolhe
Introduction: Jindal Steel and Power Limited (JSPL) is a steel company based in New Delhi,
India. It was founded in 1979 by Om Prakash Jindal and is part of the OP Jindal Group. JSPL
is India’s third-largest private steel producer and the only private company in India to produce
rails.
Objective: To find out beta and its significance
Views and Reviews:
1. Gaurav Bissa, VP, InCred Equities said, “Jindal steel has witnessed a strong upside in
the last couple of weeks with strong additions seen today. The stock is comfortably
trading above its major moving averages like 55ema, 89ema and 200ema on the daily
charts which suggests strong trend in the stock. However, the stock is approaching a 6-
month descending trendline resistance placed at Rs 600 which makes fresh buying at
the current levels less lucrative. The stock can test Rs 600 in the coming days and fresh
buying is advised once it closes above the resistance which can push it towards Rs 630-
640 levels. Conversely, one can add the stock on declines at Rs 545 to have a lucrative
risk-reward.”
2. Abhijeet from Tips2trades said, “Jindal Steel and Power looks bullish on the Daily
charts with next resistance at Rs 583. A daily close above this resistance could lead to
target of Rs 605 in the near term. Strong support will be at Rs 557.”
Kotak Institutional Equities (KIE) raised target price of Jindal Steel to Rs 740 from Rs
580.
“A sector-leading growth profile along with the strongest balance sheet makes a strong
case for re-rating,” the brokerage firm said.
Kotak sees the next 12 months as a transformational period for JSPL as various projects
are lined up for commissioning. JSPL’s capacity would increase by 65 per cent in two
phases while higher backward and forward integration over FY2024-26E would
structurally lift its margin profile.
Data Collection –
1.Collecting the historical data of Nifty50 from the website of NSE India from 01/10/2022 to
30/09/2023. After collection of the entire data of the given time period only the data of Fridays
are taken by sorting the whole data. According to the closing data of Nifty 50 of the time period,
return values are collected using the formula of return.
3. Collecting the historical data of equity (Jindal steel and power ) from the website of
NSE India from 01/10/2022 to 30/09/2023. After collection of the entire data of the
given time period only the data of Fridays are taken by sorting the whole data.
According to the closing data of Nifty 50 of the time period, return values are collected
using the formula of return.
Data Analysis:
Equation: Y = – 0.57631 + 0.998485X
▪ Interpretation: The above equation shows the relation between Nifty50 and Jindal
steel and Power .
Return of Jindal steel and power is dependent variable and return of Nifty50 is
independent variable.
Positive sign means if Nifty50 rises by 1 unit then share price of Jindal steel and
power will also rise by 0.93 and vice-versa.
Number of observations are 50.
-1.079 is the t-stat for Y, the p-value for which is 0.28.
R square is 0.936375 which means 93% of variances in Jindal steel and power are
explained by Nifty.
F is 0 , p-value for this is 0.285 which means model is statistically significant at 1%
level.
Conclusion: Beta is -0.576 which is less than 1 it means that Jindal steel and power is good for
long term investment.
Reference:
Gaurav Bissa (2023) Jindal Steel and Power: Jindal steel and power stock to keep rising.
https://www.businesstoday.in/markets/company-stock/story/jindal-steel-power-stock-turnedinto-a-multibagger-in-three-years-more-upside-likely-386157-2023-06-19
India, N. (n.d.). NSE – National Stock Exchange of India Ltd: Live Share/Stock Market news
& Updates, quotes- nseindia.com. NSE India. https://www.nseindia.com
Relationship between Nifty and Jindal Steel and Power
