Relationship of NIFTY 50 with
Gas Authority of India Limited (GAIL)
Author – GIRISH MALLESHE
Introduction: –
GAIL (India) Limited is India’s leading natural gas company with diversified interests across the natural gas value chain of trading, transmission, LPG production & transmission, LNG re-gasification, petrochemicals, city gas, E&P, etc. It owns and operates a network of around 15583 km of natural gas pipelines spread across the length and breadth of country. It is also working concurrently on execution of multiple pipeline projects to further enhance the spread. GAIL commands ~70% market share in gas transmission and has a Gas trading share of over ~ 50% in India.
GAIL and its Subsidiaries / JVs also have a formidable market share in City Gas Distribution. In the Liquefied Natural Gas (LNG) market, GAIL has significantly large portfolio. GAIL is also expanding its presence in renewable energy like Solar, Wind and Biofuel.
Objective of the study: – To calculate the Beta of GAIL and its significance.
Views and Reviews: –
- Shri Sandeep Kumar Gupta: Chairman and Managing Director, GAIL (India) limited
Achieved the best Sales Turnover of `1,03,768 crore during the Financial Year (FY) 2022-23, which is higher by 1% as compared to corresponding period of last year (CPLY) mainly due to increase in Net Sales Realization (NSR) of Saleable Steel of 5 Integrated Steel Plants and marginal increase in Sales Volume (2%). During the FY 2022-23, the decline in the profitability as compared to CPLY is on account of higher input cost perpetuated mainly by imported coal prices, increase in stores and spares consumption, repairs & maintenance expenses, increase in purchased power rates, conversion charges, security expenses, higher usage of raw materials like Iron ore, Limestone and other ferro-alloys, higher interest charges and depreciation and loss on account of foreign exchange fluctuation, etc. The decline in the profitability was offset partially by increase in production volume, improved NSR, lower salaries & wages, better techno-economic parameters viz. improvement in BF productivity and Coke Rate, lower imported coal in blend, etc., decrease in Royalty expenses, higher stock valuation rate, higher dividend income, etc.
- Shri Rakesh Kumar Jain : Director (Finance)
Shri Jain held the position of Executive Director (Finance & Accounts) in GAIL. Additionally, Shri Jain holds the position of Director in Indraprastha Gas Limited, GAIL Gas Limited, GAIL Global (USA) Inc. and GAIL Global (USA) LNG LLC. Earlier he was on the Board of Ratnagiri Gas and Power Pvt. Ltd (RGPPL). As Executive Director (Finance & Accounts), he headed Corporate Finance and Treasury section in large mobilisation of funds from domestic and international markets and took investment decisions in large infrastructure projects. He was also actively involved in Investor relations and interactions with Analysts fraternity.
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 GAIL are calculated from the same.
Y = a + b X
Here Y is the dependent variable (Weekly Returns of GAIL) and X is the independent variable (Weekly Returns of NIFTY 50)
GAIL Weekly Returns = – 0.01 + 0.00 (NIFTY 50 Weekly Returns)
The above equation shows the relationship between Weekly Returns of GAIL and NIFTY 50.
Data Analysis: –
- of Observations are 50.
- R2 means 0.11% of SAIL Weekly Returns is explained by NIFTY 50 Weekly Returns. The rest 98.89% are errors which are not considered by the model.
- T stat for b & P value of it is 0.01, it is less than 0.05 which means that NIFTY 50 Weekly Returns are statistically significant at 5% level.
- F = 0.04 and P = 0.82 which is less than 0.05 that means the overall the model is statistically significant.
Conclusion: –
Beta (β) is 0.00, it is less than 1 which means that we should invest for long term.
Relationship of NIFTY 50 with
Gas Authority of India Limited (GAIL)
Author – Salman Mohammad
Introduction: –
GAIL (India) Limited is India’s leading natural gas company with diversified interests across the natural gas value chain of trading, transmission, LPG production & transmission, LNG re-gasification, petrochemicals, city gas, E&P, etc. It owns and operates a network of around 15583 km of natural gas pipelines spread across the length and breadth of country. It is also working concurrently on execution of multiple pipeline projects to further enhance the spread. GAIL commands ~70% market share in gas transmission and has a Gas trading share of over ~ 50% in India.
GAIL and its Subsidiaries / JVs also have a formidable market share in City Gas Distribution. In the Liquefied Natural Gas (LNG) market, GAIL has significantly large portfolio. GAIL is also expanding its presence in renewable energy like Solar, Wind and Biofuel.
Objective of the study: – To calculate the Beta of GAIL and its significance.
Views and Reviews: –
- Shri Sandeep Kumar Gupta: Chairman and Managing Director, GAIL (India) limited
Achieved the best Sales Turnover of `1,03,768 crore during the Financial Year (FY) 2022-23, which is higher by 1% as compared to corresponding period of last year (CPLY) mainly due to increase in Net Sales Realization (NSR) of Saleable Steel of 5 Integrated Steel Plants and marginal increase in Sales Volume (2%). During the FY 2022-23, the decline in the profitability as compared to CPLY is on account of higher input cost perpetuated mainly by imported coal prices, increase in stores and spares consumption, repairs & maintenance expenses, increase in purchased power rates, conversion charges, security expenses, higher usage of raw materials like Iron ore, Limestone and other ferro-alloys, higher interest charges and depreciation and loss on account of foreign exchange fluctuation, etc. The decline in the profitability was offset partially by increase in production volume, improved NSR, lower salaries & wages, better techno-economic parameters viz. improvement in BF productivity and Coke Rate, lower imported coal in blend, etc., decrease in Royalty expenses, higher stock valuation rate, higher dividend income, etc.
- Shri Rakesh Kumar Jain : Director (Finance)
Shri Jain held the position of Executive Director (Finance & Accounts) in GAIL. Additionally, Shri Jain holds the position of Director in Indraprastha Gas Limited, GAIL Gas Limited, GAIL Global (USA) Inc. and GAIL Global (USA) LNG LLC. Earlier he was on the Board of Ratnagiri Gas and Power Pvt. Ltd (RGPPL). As Executive Director (Finance & Accounts), he headed Corporate Finance and Treasury section in large mobilisation of funds from domestic and international markets and took investment decisions in large infrastructure projects. He was also actively involved in Investor relations and interactions with Analysts fraternity.
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 GAIL are calculated from the same.
Y = a + b X
Here Y is the dependent variable (Weekly Returns of GAIL) and X is the independent variable (Weekly Returns of NIFTY 50)
GAIL Weekly Returns = – 0.01 + 0.00 (NIFTY 50 Weekly Returns)
The above equation shows the relationship between Weekly Returns of GAIL and NIFTY 50.
Data Analysis: –
- of Observations are 50.
- R2 means 0.11% of SAIL Weekly Returns is explained by NIFTY 50 Weekly Returns. The rest 98.89% are errors which are not considered by the model.
- T stat for b & P value of it is 0.01, it is less than 0.05 which means that NIFTY 50 Weekly Returns are statistically significant at 5% level.
- F = 0.04 and P = 0.82 which is less than 0.05 that means the overall the model is statistically significant.
Conclusion: –
Beta (β) is 0.00, it is less than 1 which means that we should invest for long term.