{"id":21361,"date":"2024-10-10T07:11:09","date_gmt":"2024-10-10T01:41:09","guid":{"rendered":"https:\/\/www.sachdevajk.in\/?p=21361"},"modified":"2024-10-10T07:11:09","modified_gmt":"2024-10-10T01:41:09","slug":"relationship-of-sail-with-nifty-50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=21361","title":{"rendered":"Relationship of SAIL with Nifty 50"},"content":{"rendered":"

Relationship of <\/span><\/span>SAIL<\/span><\/span> with Nifty 50<\/span><\/span><\/p>\n

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Author<\/span><\/span>: <\/span><\/span>Undru Shreeya<\/span><\/span><\/p>\n

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F4 2024-26 \u2013 0213300<\/span><\/span>24392<\/span><\/span>, <\/span><\/span>ITM Business School, <\/span><\/span>Kharghar, Maharashtra, India<\/span><\/span><\/p>\n

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Introduction:<\/span><\/span> Steel Authority of India Limited (SAIL) is one of India\u2019s largest state-owned steel-making companies, founded in 1954 and headquartered in New Delhi. SAIL operates and manages five integrated steel plants, offering a wide range of steel products to sectors like construction, railways, and defense. As a key player in India’s industrial development, SAIL is committed to sustainable practices and <\/span><\/span>innovation in steel production.<\/span><\/span><\/p>\n

Objective:<\/span><\/span> To find out the Beta of <\/span><\/span>SAIL<\/span><\/span> and its significance with respect to Nifty 50.<\/span><\/span><\/p>\n

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Data Collection:<\/span><\/span> The data for Nifty 50 and <\/span><\/span>SAIL<\/span><\/span> was downloaded from official site of NSE<\/span><\/span> for the period 1<\/span><\/span>st<\/span><\/span> June 2023 to 31<\/span><\/span>st<\/span><\/span> May 2024. Data was manipulated to get Friday closing prices and weekly returns of Nifty 50 and <\/span><\/span>SAIL<\/span><\/span> was calculated using the formula (Yt+1 \u2013 Yt) \/ Yt * 100 and then Y was regressed on X. Here Y is Weekly returns of <\/span><\/span>SAIL<\/span><\/span> and X is weekly returns of Nifty 50.<\/span><\/span><\/p>\n

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Data Analysis:<\/span><\/span><\/p>\n

Weekly Returns of <\/span><\/span>SAIL<\/span><\/span> = <\/span><\/span>-1.25+0.25<\/span><\/span> Weekly Returns of Nifty 50<\/span><\/span><\/p>\n

\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0(<\/span><\/span>0.434<\/span><\/span>)<\/span><\/span><\/p>\n

N = 49 <\/span><\/span><\/p>\n

R\u00b2 = 0.<\/span><\/span>004<\/span><\/span><\/p>\n

F = <\/span><\/span>0.19<\/span><\/span><\/p>\n

P-value = 0.<\/span><\/span>66<\/span><\/span><\/p>\n

t Stat = <\/span><\/span>0.434<\/span><\/span><\/p>\n

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Interpretation: <\/span><\/span>The above equation shows the relationship between Nifty 50 and <\/span><\/span>SAIL<\/span><\/span>. The positive sign before <\/span><\/span>0.25<\/span><\/span>means there is a positive relationship, if Nifty 50 rises by 1 unit then <\/span><\/span>SAIL<\/span><\/span> also rises by <\/span><\/span>0.25<\/span><\/span> and vice versa. The coefficient of Nifty 50 has t Stat = <\/span><\/span>0.434<\/span><\/span>, the P-value of which is <\/span><\/span>0.66, which is more<\/span><\/span> than 0.05 meaning Nifty 50 is<\/span><\/span> not<\/span><\/span>statistically significant <\/span><\/span>to increase the price of SAIL<\/span><\/span>. <\/span><\/span>SAIL<\/span><\/span> R\u00b2 is 0.<\/span><\/span>004<\/span><\/span> which means <\/span><\/span>0.4<\/span><\/span>% of Weekly returns of <\/span><\/span>SAIL <\/span><\/span>are explained by Nifty 50. <\/span><\/span>The balance 99.6<\/span><\/span>% is standard error i.e. it depends on other factors like fundamentals. F is <\/span><\/span>0.19<\/span><\/span>and the P-value is <\/span><\/span>0.66<\/span><\/span> meaning it is <\/span><\/span>more<\/span><\/span> than 0.05 meaning the overall model is<\/span><\/span> not<\/span><\/span> statistically significant.<\/span><\/span><\/p>\n

Conclusion:<\/span><\/span> SAIL<\/span><\/span> is good for <\/span><\/span>long<\/span><\/span> term investment.<\/span><\/span><\/p>\n

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Relationship of SAIL with Nifty 50 \u00a0 Author: Undru Shreeya \u00a0 F4 2024-26 \u2013 021330024392, ITM Business School, Kharghar, Maharashtra, India \u00a0 Introduction: Steel Authority of India Limited (SAIL) is one of India\u2019s largest state-owned steel-making companies, founded in 1954 and headquartered in New Delhi. SAIL operates and manages five integrated steel plants, offering a… Continue reading Relationship of SAIL with Nifty 50<\/span><\/a><\/p>\n","protected":false},"author":139555,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[844],"class_list":["post-21361","post","type-post","status-publish","format-standard","hentry","category-finance","tag-mba-finance","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21361","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\/139555"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21361"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21361\/revisions"}],"predecessor-version":[{"id":21362,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21361\/revisions\/21362"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21361"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21361"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21361"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}