{"id":23190,"date":"2025-12-20T16:31:36","date_gmt":"2025-12-20T11:01:36","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23190"},"modified":"2025-12-20T16:31:36","modified_gmt":"2025-12-20T11:01:36","slug":"relationship-of-nifty-50-with-sail-steel-authority-of-india-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23190","title":{"rendered":"Relationship of Nifty 50 with SAIL (Steel Authority of India Limited)"},"content":{"rendered":"

Relationship of Nifty 50 with SAIL (Steel Authority of India Limited)<\/span><\/b><\/p>\n

\u00a0<\/span>Author -Sanskriti Sanap<\/span><\/p>\n

MBA -Finance<\/span><\/p>\n

ITM Skills University<\/span><\/p>\n

\u00a0<\/span><\/p>\n

INTRODUCTION <\/span><\/b><\/p>\n

Steel Authority of India Limited (SAIL) is a premier government-owned steel manufacturing corporation and a Maharatna central public sector enterprise. Headquartered in New Delhi, it operates as a fully integrated iron and steel maker with five major integrated plants and three special steel facilities across India. As of the 2024\u201325 fiscal year, SAIL achieved a record production of 19.17 million tonnes of crude steel and reported a turnover of approximately \u20b91,02,478 crore. The company remains a critical contributor to India’s infrastructure and defense sectors, supplying specialized steel for landmark projects like indigenous aircraft carriers and high-speed rail corridors. Dedicated to national self-reliance, it is currently undergoing massive modernization to significantly expand its production capacity for future demand.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

OBJECTIVE OF THIS STUDY\u00a0 <\/span><\/span><\/b><\/p>\n

Calculation of beta of SAIL (Steel Authority of India Limited) and observe it’s significance. <\/span><\/p>\n

\u00a0<\/span><\/p>\n

LITERATURE REVIEW <\/span><\/b><\/p>\n

1.CSR Strategy-<\/span><\/p>\n

\u00a0<\/span>Pattnaik & Shukla (2018) find that SAIL transitioned from basic philanthropy to a strategic “Maharatna” framework, using CSR to maintain its social license and develop regional infrastructure.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

2.Reform Impact-<\/span><\/p>\n

Baa & Chattoraj (2023) show that government reforms and “Maharatna” status improved SAIL’s financial autonomy and efficiency, though it still lags behind private competitors in technological innovation.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

DATA COLLECTION<\/span><\/b><\/p>\n

The Historical data of SAIL and Nifty 50 was downloaded from NSE india.com Friday closing prices were found and weekly return what calculated. Weekly return of nifty was taken as X and weekly return of SAIL what’s taken as Y.Y was regress on X.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

DATA ANALYSIS <\/span><\/b><\/p>\n

The intercept = a =\u22120.083998233 <\/span><\/p>\n

Coefficient = bx=0.098868515 <\/span><\/p>\n

a+bx=\u22120.083998233+0.098868515<\/span><\/p>\n

\u00a0<\/span><\/p>\n

The above equation tells us the relationship between Nifty 50 and Steel Authority of India Limited (SAIL) . The positive sign means if the equity of Steel Authority of India Limited (SAIL) \u00a0<\/span>rises and vice versa, the Nifty 50 tends to rise as well, and vice versa. If the equity rises by 1 unit, the Nifty 50 will rise by 0.098868515 units twice versa.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

t-stat for beta is 2.692061285, the p-value of which is 0.009689883. This p-value is less than 0.05, and even less than 0.01, meaning the beta is statistically significant at both the 5% and 1% levels. Based on this data, you can say that Steel Authority of India Limited (SAIL) \u00a0<\/span>reliably has a positive relationship with the Nifty 50 movements. R-square is 0.128845431\u22480.13, which means 13% of the Nifty 50 movements are explained by Steel Authority of India Limited (SAIL), while 87% is due to other reasons.<\/span><\/p>\n

The estimated regression equation is expressed as:<\/span><\/p>\n

y=\u22120.083998233+0.098868515x<\/span><\/p>\n

Summary Statistics:<\/span><\/p>\n

No of observations: 51<\/span><\/p>\n

R square: 0.128845431<\/span><\/p>\n

F \u2013 value: 7.24719396<\/span><\/p>\n

\u00a0<\/span><\/p>\n

CONCLUSION<\/span><\/b><\/p>\n

\u03b2 =\u00a02.69
Since \u03b2 is more than 1,\u00a0Steel Authority of India Limited (SAIL)\u00a0is more volatile than the market (Nifty 50), indicating that the stock carries\u00a0higher systematic risk\u00a0and has the potential to generate\u00a0higher returns compared to the market. This makes Steel Authority of India Limited (SAIL)suitable for\u00a0short-term investors\u00a0who are willing to take higher risk, while long-term investors should carefully consider market and firm-specific factors before investing.<\/span><\/b><\/p>\n

\u00a0<\/span><\/b><\/p>\n

\u00a0<\/span><\/p>\n

REFERENCE<\/span><\/b><\/p>\n

1.Pattnaik, P. N., & Shukla, M. K. (2018). The evolution of CSR efforts at Steel Authority of India Limited. Global Business and Organizational Excellence, 37(3), 25\u201332. <\/span><\/p>\n

\u00a0<\/span><\/p>\n

2. Baa, R., & Chattoraj, A. K. (2023). Assessing the Effectiveness of Public Sector Enterprises Reforms on Growth and Performances of Steel Authority of India Ltd. International Journal of Professional Business Review, 8(8), e03367. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Relationship of Nifty 50 with SAIL (Steel Authority of India Limited) \u00a0Author -Sanskriti Sanap MBA -Finance ITM Skills University \u00a0 INTRODUCTION Steel Authority of India Limited (SAIL) is a premier government-owned steel manufacturing corporation and a Maharatna central public sector enterprise. Headquartered in New Delhi, it operates as a fully integrated iron and steel maker… Continue reading Relationship of Nifty 50 with SAIL (Steel Authority of India Limited)<\/span><\/a><\/p>\n","protected":false},"author":139910,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23190","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23190","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\/139910"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23190"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23190\/revisions"}],"predecessor-version":[{"id":23191,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23190\/revisions\/23191"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23190"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}