Title: Relationship of JSW Steel Limited with NIFTY 50
Author: Jaswant Singh Rathod
Introduction:
JSW Steel Limited is an Indian multinational steel producer headquartered in Mumbai and is part of the JSW Group. It is one of the leading steel companies in India.
JSW Steel Ltd shares recently opened at ₹1,042.00, with a previous close of ₹1,039.10. As of the latest data, the market capitalization is approximately ₹252,798 crores with a traded volume of 4,855,592 shares.
Data Collection:
Data was downloaded from NSE India site for the period 1 May 2023 to 30 April 2024.
Data was manipulated to find the Friday closing price.
Weekly Returns of JSW Steel Limited and NIFTY 50 were calculated.
Weekly Return of JSW Steel Limited Is Y and Weekly Return of NIFTY 50 is X.
Weekly Return of JSW Steel Limited Was regressed on Weekly Return of NIFTY 50.
Data Analysis:
Weekly Return of Y = (-0.31) + (-0.08)
T stat = (-0.244)
N=48 R Square =0.001 F=0.59
P value= 0.80
Interpretation:
The above equation depicts the relationship between weekly returns of JSW Steel Limited And weekly returns of NIFTY 50.
The + sign before the coefficient of NIFTY 50 tells that if NIFTY 50 rises Ajanta Pharma Limited. Will also rise and vice-versa. If NIFTY falls by 1 unit Ajanta Pharma Limited Will fall by .26
Figure in bracket (-0.244) is t stat for β (beta) and P value for which is 0.80 which is more than 0.05 meaning β (beta) is not statistically significant at 5% level.
is 0.001 meaning .1% of company’s return are explained by NIFTY 50 the balance 99.9% maybe due to fundamentals.
F is 0.59 and P value is 0.080 meaning overall model is not statistically significant.
Conclusion:
As β is -0.08 which is negative value indicates that investing in JSW Steel Limited Is not a good choice and you should avoid it.