Relationship of JSW Steel with Nifty50.
Author: Jayesh Kakade.
- Intro: JSW Steel is a leading integrated steel manufacturer based in India, known for its innovative approach and sustainable practices in the steel industry. Established in 1982, JSW Steel has expanded its operations globally, producing a diverse range of steel products used in various sectors like automotive, infrastructure, construction, and more. The company is committed to technological advancement, focusing on environmentally friendly production methods. With a strong emphasis on quality, efficiency, and social responsibility, JSW Steel continues to be a key player in shaping the steel industry landscape.
- Objective: To calculate Beta and its significance.
- Views and Reviews: JSW steel is one of the best companies in the steel sector. Growing quite fast and expanding its business too fast. There are more than 50000 people working with organizations directly or through contractors. In terms of product quality JSW is best and giving tough competition to TATA steel. Winning the hearts of customers with their prime quality products and latest technologies in the world.
Motto is: – Better every day.
- Data collection: Nifty and JSW Steel closing price was collected from NSE website. The weekly return of Nifty is termed as “X” and weekly return of JSW Steel is termed as “Y”.
- Data Analysis:
- Equation: Y=0.5590+0.9807x
- Interpretation: The above equation shows the relation between Nifty50 and JSW Steel.
Return of JSW Steel is dependent variable and return of Nifty50 is independent variable.
Positive sign means if Nifty50 rises by 1 unit then share price of JSW Steel will also rise by 0.98 and vice-versa.
Number of observations are 50.
25.95 is the t-stat for Y, the p-value for which is 0.00.
R square is 0.9334 which means 93% of variances in JSW Steel are explained by Nifty.
F is 673.55, p-value for this is 0.00 which means model is statistically significant at 1% level.
- Conclusion: Beta is 0.5590 which is less than 1, it means that JSW Steel is good for long-term investment.
- Reference:
https://www.nseindia.com/