TITLE: RELATIONSHIP OF SAIL (STEEL AUTHORITY OF INDIA LIMITED) WITH NIFTY50
AUTHOR: Sojwal Dodal
INTRODUCTION :
SAIL (Steel Authority of India Limited) is one of India’s largest state-owned steel producers. Established in 1973, the company plays a vital role in the nation’s industrial development by producing high-quality steel products for various sectors. With a commitment to sustainability and innovation, SAIL focuses on modernizing its operations while contributing to the country’s economic growth. The company is known for its strong workforce and robust production capabilities, making it a key player in the global steel industry.
OBJECTIVE : Find out Beta of SAIL and its Significance
DATA COLLECTION :
Data of Company SAIL and NIFTY was downloaded from 1 May 2023 to 30 April 2024 from NSE, the data was manipulated to find the friday closing prices further weekly return of nifty and Sail was regressed on weekly returns of Nifty50
DATA ANALYSIS :
WEEKLY RETURNS OF SAIL = 3.162 + 9.145
N= 53, R^=0.05329, F= 2.87101, P-value= 0.096,
t-stat= 1.694
INTERPRETATION :
The above equation depicts the relationship between weekly return of SAIL and weekly return of Nifty50 the +sign before the coefficient of Nifty50 tell that if Nifty rises your company also rises and vice versa ,if Nifty rises one unit your company will rise by 1.94 units , (1.694) is t-stat for Beta of the p value for which is 0.096,which is more than 0.05 meaning B is statistically insignificant
R^ is 0.05329 meaning 53% of companies return are explained by Nifty50 the balance 47% may be due fundamentals.
F is 2.87101 of the P-value is 0.096 meaning overall model is statistically insignificant
CONCLUSION : B value that is beta is more than 1 and Nifty is at low company is good for short term investment
