{"id":19019,"date":"2023-11-18T09:19:49","date_gmt":"2023-11-18T03:49:49","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=19019"},"modified":"2023-11-18T09:19:49","modified_gmt":"2023-11-18T03:49:49","slug":"relationship-of-jsw-steel-with-nifty-fifty-and-to-calculate-beta","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=19019","title":{"rendered":"Relationship OF JSW STEEL with Nifty Fifty and to calculate Beta"},"content":{"rendered":"<p><span style=\"font-weight: 400\">Title<\/span><span style=\"font-weight: 400\">: <\/span><span style=\"font-weight: 400\">Relationship OF JSW STEEL with Nifty 50 and to calculate Beta.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Author<\/span><span style=\"font-weight: 400\">: Jugnum Parimal<\/span><\/p>\n<p><span style=\"font-weight: 400\">Introduction<\/span><span style=\"font-weight: 400\">: <\/span><span style=\"font-weight: 400\">JSW Steel Limited is a leading integrated steel manufacturer in India and part of the JSW Group, one of the country&#8217;s largest business conglomerates. Established in 1982, JSW Steel has grown to become a major player in the global steel industry. The company is known for its commitment to innovation, quality, and sustainability in steel production. Over the years, it has undergone significant growth and expansion.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Objective<\/span><span style=\"font-weight: 400\">: To calculate Beta of JSW STEEL and see its significance.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Literature Review:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Kumar et.al<\/span><span style=\"font-weight: 400\">.,(2008) states that JSW Steel Limited is an integrated steel plant with a 3.8 mtpa capacity, utilizing both Corex and blast furnace (BF) ironmaking technologies. Corex, a smelting reduction process, uses non-coking coal, while BF is a conventional counter-current ironmaking process. The comparison highlights the unique advantages of each technology, and the synergistic combination of Corex and BF at JSW maximizes solid waste utilization, reducing hot metal production costs. This approach offers operational flexibility, cost-effectiveness, and efficient raw material usage.<\/span><\/li>\n<\/ul>\n<p>\u00a0<\/p>\n<ul>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Sahoo and P. K. (2012), <\/span><span style=\"font-weight: 400\">states that<\/span> <span style=\"font-weight: 400\">JSW Steel&#8217;s acquisition of Ispat Industries in 2010 aimed to turn around the financially troubled company within two years and make it a major player in the Indian steel industry. However, by mid-2012, JSW Ispat Ltd&#8217;s performance was disappointing. The acquisition faced challenges such as the Bellary Illegal Mining Case, gas supply issues from Reliance KG D6 Basin, and the inability to service a significant debt burden. Strategies included debt restructuring, capital expenditure plans, and improving raw material sourcing. Despite these efforts, Ispat continued to incur losses, raising questions about the effectiveness of JSW&#8217;s strategies. The paper analyzes the reasons behind the failure of the JSW Steel-Ispat deal, considering factors like debt restructuring, raw material supply challenges, and external issues affecting the steel industry. Despite initial optimism, the acquisition faced unforeseen obstacles, impacting JSW&#8217;s expected turnaround of Ispat Industries.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400\">Data Collection:<\/span><\/p>\n<p><span style=\"font-weight: 400\">\u00a0<\/span><span style=\"font-weight: 400\">The data for Nifty and Equity of JSW STEEL has been downloaded from <\/span><a href=\"http:\/\/nseindia.com\/\"><span style=\"font-weight: 400\">http:\/\/nseindia.com\/<\/span><\/a><span style=\"font-weight: 400\"> and\u00a0 <\/span><a href=\"http:\/\/yahoofinance.com\/\"><span style=\"font-weight: 400\">http:\/\/yahoofinance.com\/<\/span><\/a><span style=\"font-weight: 400\"> from 1st November, 2022 to 31st October, 2023. Data was manipulated to calculate the Friday closing price.<\/span><\/p>\n<p><span style=\"font-weight: 400\">Data analysis:<\/span><span style=\"font-weight: 400\"> JSW steel shares 0.221+ 0.100 nifty\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">n=48, Rsquare=0.010, F=0.492<\/span><\/p>\n<p><span style=\"font-weight: 400\">The above equation shows the relationship of JSW steel with Nifty.<\/span><\/p>\n<p><span style=\"font-weight: 400\">If the nifty rises by 1 unit, JSW steel will rise by 0.100 units.<\/span><\/p>\n<p><span style=\"font-weight: 400\">t-stat for b is 0.701 and the p value is 0.486 which is more than 0.05. So, b=0, meaning Nifty does not impact JSW steel shares<\/span><\/p>\n<p><span style=\"font-weight: 400\">Rsquare is 0.010, meaning 1% of JSW steel explained by Nifty meaning 99% of JSW steel depends upon other things like fundamentals.<\/span><\/p>\n<p><span style=\"font-weight: 400\">F= 0.492 &amp; p value is greater than 0.05, So the model is not statistically significant at 5% level.<\/span><\/p>\n<p>\u00a0<\/p>\n<p><span style=\"font-weight: 400\">Conclusion:\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400\">As beta is (0.100) is less than 1, So good for long term investment.<\/span><\/p>\n<p><span style=\"font-weight: 400\">References:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400\"><span style=\"font-weight: 400\">Kumar, P. P., Gupta, P. K., &amp; Ranjan, M. (2008). Operating experiences with corex and blast furnace at JSW steel ltd.<\/span><i><span style=\"font-weight: 400\"> Ironmaking &amp; Steelmaking, 35<\/span><\/i><span style=\"font-weight: 400\">(4), 260-263. Retrieved from <\/span><a href=\"https:\/\/www.proquest.com\/scholarly-journals\/operating-experiences-with-corex-blast-furnace-at\/docview\/236443082\/se-2\"><span style=\"font-weight: 400\">https:\/\/www.proquest.com\/scholarly-journals\/operating-experiences-with-corex-blast-furnace-at\/docview\/236443082\/se-2<\/span><\/a><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400\">2. Sahoo, P. K. (2012). Strategy failure: Post acquisition performance of JSW steel &#8211; ispat deal.<\/span><i><span style=\"font-weight: 400\"> Kushagra International Management Review, 2<\/span><\/i><span style=\"font-weight: 400\">(2), 109-116. Retrieved from https:\/\/www.proquest.com\/scholarly-journals\/strategy-failure-post-acquisition-performance-jsw\/docview\/1436876589\/se-2<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Title: Relationship OF JSW STEEL with Nifty 50 and to calculate Beta. Author: Jugnum Parimal Introduction: JSW Steel Limited is a leading integrated steel manufacturer in India and part of the JSW Group, one of the country&#8217;s largest business conglomerates. Established in 1982, JSW Steel has grown to become a major player in the global&hellip; <a class=\"more-link\" href=\"http:\/\/www.sachdevajk.in\/?p=19019\">Continue reading <span class=\"screen-reader-text\">Relationship OF JSW STEEL with Nifty Fifty and to calculate Beta<\/span><\/a><\/p>\n","protected":false},"author":138971,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-19019","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\/19019","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\/138971"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19019"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19019\/revisions"}],"predecessor-version":[{"id":19020,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19019\/revisions\/19020"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19019"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19019"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19019"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}