Title: Calculation of Beta of Steel Authority of India and its Significance<\/p>\n
Author: Sweta Mohanty<\/p>\n
Introduction: Steel Authority of India Limited (SAIL) is a central public sector undertaking based in New Delhi, India. It is under the ownership of Ministry of Steel, Government of India with an annual turnover of INR 1,03,480 Crore (US$13 billion) for fiscal year 2021\u201322. With an annual production of 16.30 million metric tons, It is the largest government owned steel producer.[3] The hot metal production capacity of the psu will further increase and is expected to reach a level of 50 million tonnes per annum by 2025.<\/p>\n
Objective: To calculate Beta of SAIL and its significance.<\/p>\n
Data Collection: Data of SAIL from 01-12-2021 to 30-11-2022 from NSE website
\n\u2022\tFriday weekly closing prices has been found out
\n\u2022\tWeekly Return have been calculated with the formula of (Y2-Y1)\/Y1*100
\n\u2022\tWeekly Return of Equity have been regressed on Weekly Return of Nifty<\/p>\n
Data Analysis:
\nWeekly return of SAIL= 0.748+1.399 Weekly return of nifty +E<\/p>\n
\u2022\tt-stat = 5.958
\n\u2022\tR2 = 0.430
\n\u2022\tF = 35.498
\n\u2022\tN = 49<\/p>\n
\u2022\tThe above equation tells us about the relationship between Weekly Return of SAIL and Weekly Return of Nifty. The positive sign means that there is a direct relationship. If nifty rises, equity rises and if nifty falls, equity falls. The co-efficient of weekly return of nifty is 1.399, which means if nifty rises by 1 unit, SAIL equity will rise by 1.399 units and vice versa.
\n\u2022\tNumber of Observations are 49 and t-stat is 5.958.
\n\u2022\tP value is 0, which is less than 0.05, means that b is statistically significant at 5%. Even it is less than 0.01, b is statistically significant at 1% level.
\n\u2022\tR2 is 0.4302, which means that 43.02% of Y (SAIL) is explained by X (NIFTY), balance of 56.98% is error. Error is due to the variables which are not in the model.
\n\u2022\tF is 35.498, the P value for which is 0 < 0.01, means overall the model is statistically significant.<\/p>\n
Conclusion:<\/p>\n
Since b = 1.399 is greater than 1, it is statistically significant.
\nSAIL is a good option for investment because for every increase in nifty there will an increase in the equity of SAIL.<\/p>\n","protected":false},"excerpt":{"rendered":"
Title: Calculation of Beta of Steel Authority of India and its Significance Author: Sweta Mohanty Introduction: Steel Authority of India Limited (SAIL) is a central public sector undertaking based in New Delhi, India. It is under the ownership of Ministry of Steel, Government of India with an annual turnover of INR 1,03,480 Crore (US$13 billion)… Continue reading SAIL Analysis<\/span><\/a><\/p>\n","protected":false},"author":108713,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-16943","post","type-post","status-publish","format-standard","hentry","category-finance","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16943","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/users\/108713"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16943"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16943\/revisions"}],"predecessor-version":[{"id":16945,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16943\/revisions\/16945"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16943"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}