Relationship of NIFTY 50 with
JINDAL STEEL & POWER LIMITED
AUTHOR-JIGNA CHOUDHARY
ROLL NO –21230023883
BATCH- FINANCIAL MARKET, ITM
INTRODUCTION: –
Jindal Steel and Power Limited (JSPL) is one of India’s fastest growing and largest integrated steel manufacturers, significantly present in the steel, power, mining and infrastructure segment. Part of the US $ 18 billion OP Jindal Group this young, agile and responsive company’s business operations span across Asia, Africa and Australia.
Led by Mr Naveen Jindal, the youngest son of the legendary Shri O.P. Jindal, the company produces economical and efficient steel and power through backward and forward integration. From the widest flat products to a whole range of long products, JSPL today sports a product portfolio that caters to markets across the steel value chain. The company produces the world’s longest (121-meter) rails and it is the first in the country to manufacture large-size parallel flange beams.
OBJECTIVE OF THE STUDY: –
To calculate the Beta of JINDAL STEEL AND POWER LTD and its significance.
VIEWS AND REVIEWS: –
Naveen Jindal Chairman–
It is my privilege to present to you our Integrated Annual Report for FY 2022-23. The steel industry has always been characterised by its everchanging nature, but the combination of various factors in recent times such as climate change and geopolitical uncertainties have heightened the level of unpredictability in the industry. The magnitude and interplay of these factors have shaped our industry and the world at large, compelling organisations to demonstrate agility and resilience to survive and thrive. Only companies with scale, sustainability, and growth are likely to survive the evergrowing complexity of the industry. Amongst the leading steel players in India, your Company has successfully navigated through these challenges and has emerged stronger and better than before. We managed to deliver yet another set of excellent performance during the year despite the heightened uncertainty in the global macro environment driven by the Russia-Ukraine conflict, multidecadal high inflation in many advanced economies and slowdown in China among other factors. Our ability to innovate, set new standards for improving the lives of people, and stay true to our core values was once again pivotal in this journey.
Bimlendra Jha Managing Director–
I am delighted to reach out to you once again, reflecting upon a year filled with challenges and uncertainty on a global scale. As I present the Integrated Annual Report 2022-23, I take pride in showcasing how JSP has adeptly manoeuvred through this evolving landscape, wholeheartedly reinforcing our mission of ‘Building Nations, Empowering Communities.’ This comprehensive report offers an insightful account of our achievements and highlights our efforts in creating a positive impact in the world we serve. I am proud to present our success in de-leveraging our balance sheet while maintaining our focus on investments to build a stronger future.
Data Collection: –
Historical data has been downloaded from 01/02/2023 to 31/01/2024 from www.nseindia.com, and the weekly returns of NIFTY 50 and JINDAL STEEL AND POWER LTD are calculated from the same.
Y= dependent variable (Weekly Returns of SAIL)
X= independent variable (Weekly Returns of NIFTY 50)
Y = a + b X
SAIL Weekly Returns = -25400.65 + 0.57 (NIFTY 50 Weekly Returns)
The above equation shows the relationship between Weekly Returns of JINDAL STEEL AND POWER LTD and NIFTY 50.
|
Date |
Nifty 50_Weekly Returns |
Jindal _Weekly Returns |
|
06-02-23 |
|
|
|
13-02-23 |
44870 |
490 |
|
20-02-23 |
44877 |
460 |
|
27-02-23 |
44884 |
489 |
|
06-03-23 |
44891 |
476 |
|
13-03-23 |
44898 |
472 |
|
20-03-23 |
44905 |
434 |
|
27-03-23 |
44912 |
446 |
|
03-04-23 |
44919 |
444 |
|
10-04-23 |
44926 |
460 |
|
17-04-23 |
44933 |
473 |
|
24-04-23 |
44940 |
483 |
|
01-05-23 |
44947 |
483 |
|
08-05-23 |
44954 |
474 |
|
15-05-23 |
44961 |
422 |
|
22-05-23 |
44968 |
420 |
|
29-05-23 |
44975 |
425 |
|
05-06-23 |
44982 |
424 |
|
12-06-23 |
44989 |
444 |
|
19-06-23 |
44996 |
469 |
|
26-06-23 |
45003 |
481 |
|
03-07-23 |
45010 |
510 |
|
10-07-23 |
45017 |
542 |
|
17-07-23 |
45024 |
528 |
|
24-07-23 |
45031 |
565 |
|
31-07-23 |
45038 |
553 |
|
07-08-23 |
45045 |
598 |
|
14-08-23 |
45052 |
541 |
|
21-08-23 |
45059 |
534 |
|
28-08-23 |
45066 |
601 |
|
04-09-23 |
45073 |
598 |
|
11-09-23 |
45080 |
611 |
|
18-09-23 |
45087 |
583 |
|
25-09-23 |
45094 |
601 |
|
02-10-23 |
45101 |
583 |
|
09-10-23 |
45108 |
582 |
|
16-10-23 |
45115 |
562 |
|
23-10-23 |
45122 |
544 |
|
30-10-23 |
45129 |
497 |
|
06-11-23 |
45136 |
537 |
|
13-11-23 |
45143 |
547 |
|
20-11-23 |
45150 |
560 |
|
27-11-23 |
45157 |
592 |
|
04-12-23 |
45164 |
586 |
|
11-12-23 |
45171 |
624 |
|
18-12-23 |
45178 |
626 |
|
25-12-23 |
45185 |
648 |
|
01-01-24 |
45192 |
636 |
|
08-01-24 |
45199 |
636 |
|
15-01-24 |
45206 |
629 |
|
22-01-24 |
45213 |
616 |
|
29-01-24 |
45220 |
657 |
|
SUMMARY OUTPUT |
||||||||
|
Regression Statistics |
||||||||
|
Multiple R |
0.851072566 |
|||||||
|
R Square |
0.724324512 |
|||||||
|
Adjusted R Square |
0.718698482 |
|||||||
|
Standard Error |
37.33681385 |
|||||||
|
Observations |
51 |
|||||||
|
ANOVA |
||||||||
|
|
df |
SS |
MS |
F |
Significance F |
|||
|
Regression |
1 |
179475.6851 |
179475.6851 |
128.7452191 |
2.578E-15 |
|||
|
Residual |
49 |
68307.84574 |
1394.037668 |
|||||
|
Total |
50 |
247783.5308 |
|
|
|
|||
|
|
Coefficients |
Standard Error |
t Stat |
P-value |
Lower 95% |
Upper 95% |
Lower 95.0% |
Upper 95.0% |
|
Intercept |
-25400.64665 |
2285.629343 |
-11.11319591 |
5.39692E-15 |
-29993.79 |
-20807.5 |
-29994 |
-20808 |
|
X Variable 1 |
0.575736324 |
0.050740889 |
11.34659505 |
2.57768E-15 |
0.4737687 |
0.677704 |
0.4738 |
0.6777 |
INTREPRETATION: –
- of Observations are 51.
- R2 means (0.72) 72% of JINDAL STEEL AND POWER LTD Weekly Returns is explained by NIFTY 50 Weekly Returns. The rest 37% are errors which are not considered by the model.
- T stat for b & P value of it is 0.00, it is less than 0.05 which means that NIFTY 50 Weekly Returns are statistically significant at 5% level.
- F = 128.745 and P = 0.00 which is less than 0.05 that means the overall the model is statistically significant.
CONCLUSION-
beta (0.57) is less than one so we can invest in the company for the long term or the make the investment for than one year.
So, based on this interpretation, investing for the long term or holding the investment for more than one year could be a viable strategy, considering its lower volatility compared to the market.