Relationship of Nifty with SAIL

1.    INTRODUCTION

·       Steel Authority of India Limited (SAIL) is a premier state-owned steel manufacturer and a designated Maharatna Public Sector Enterprise. 

·       ​The company manages a massive distribution network for iron and steel products, specializing in high-volume logistics and demand forecasting. 

·       ​SAIL focuses on large-scale industrial operations, utilizing its own captive mines for strategic raw material integration. 

·       ​Due to its complex supply chain and significant role in national infrastructure, it is a highly appropriate subject for operations and supply chain management research.

2.    OBJECTIVE

·       To calculate β of SAIL and observe its significance.

3.    DATA COLLECTION

·       Historical data of SAIL and NIFTY50 index data (downloaded from NSE website for the period 01-Dec-24 to 30-Nov-2025).

·       The data was manipulated to get Friday closing prices.

4.    LITERATURE REVIEW

·       Research highlights SAIL’s status as a core sector leader focusing on modernization and value-added steel products to remain competitive.

5.    DATA ANALYSIS

·       Regression Equation: –

y = 0.060792236x  + 1.394271302

                        where: –

                                    y = Weekly Return for Redington Ltd.

                                    x = Weekly Return for NIFTY

This equation tells us that if weekly returns of NIFTY increases, then weekly return for Redington Ltd also increases.

·       Number of Observations = 48

·       t-stat for β = 0.124929812

·       p-value = 2.79465 × 10⁻⁶ èThis indicates that since p-value < 0.05, β is statistically significant at 1% level.

·       R2 = 0.382597262 è This indicates that around 15% of the weekly return for Redington Ltd. is explained by the weekly return for NIFTY. 85% is the error due to the other variables which are not in model.

·       F = 28.50566241 è The overall model is statistically significant.

6.    CONCLUSION

Here β = 0.060792236 è Since β ≥ 1, it is good for short-term investment if NIFTY rises.

7.    REFERENCES

1. IIDE (2025). SWOT Analysis of SAIL – Steel Authority of India Limited (IIDE Case Study )

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