Title – Relationeship of Kalyani steel Ltd. with nifty50
Author – Karishma Patel
Introduction – Established in 1973, Kalyani steels is a leading manufacturer of forging and engineering quality carbon and alloy steels using the blast furnace route. Share price: As of 7-oct-2024, KSL share price was 808.80 on the NSE and 805.65 on the BSE.
Objective – TO find out beta of Kalyani steel Ltd and its significance
Data collection – data was collected from NSE. Data was manipulated to find out the Friday closing price. weekly return was calculated weekly return of Nifty50 was X and Kalyani steel was Y.
Data analysis – 2639.52 +(-0.11)
(-8.55959)
N = 48, R square=0.61, F=73.26, P value = 4.5
Intierpretation – The above equation depicts the relationship between weekly returns of Kalyani steel Ltd and weekly returns of NIFTY 50. The plus sign before the coefficient of NIFTY 50 tells that if NIFTY 50 rises, Kalyani steel Ltd will also rise and vice versa. The figure in the bracket is tstat for Beta. If NIFTY 50 rises by 1 unit, Kalyani steel Ltd will rise by -0.11 unit. The figure in the bracket is the tstat for Beta. The p value is 4.5 which is more then -0.11. this means data is not significant. R square 0.61, means 61% of the company return are explailend by nify50. The balance 39% may be due to fandamantal. The overall model is not significant.
Conclusion- beta is -0.11 which is less then1, hence investment should be avoided.