{"id":23471,"date":"2025-12-29T11:15:54","date_gmt":"2025-12-29T05:45:54","guid":{"rendered":"https:\/\/www.sachdevajk.in\/?p=23471"},"modified":"2025-12-29T11:15:54","modified_gmt":"2025-12-29T05:45:54","slug":"relationship-of-steel-authority-of-india-limited-sail-with-nifty-50-2","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23471","title":{"rendered":"Relationship of Steel Authority of India Limited (SAIL) with Nifty 50"},"content":{"rendered":"

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Title<\/span><\/b>: Relationship of Steel Authority of India Limited (SAIL) with Nifty 50<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Author:<\/span><\/b> Srashti Agrawal<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Introduction<\/span><\/b>: <\/span><\/p>\n

Steel Authority of India Limited (SAIL) is India’s largest state-owned steel-making company, under the administrative control of the Ministry of Steel, Government of India. Established in 1954, SAIL is one of the largest public sector undertakings in India and a leading steel producer with an annual crude steel production capacity of around 21 million tonnes. The company operates and owns five integrated steel plants at Bhilai, Rourkela, Durgapur, Bokaro, and Burnpur (Asansol), and three special steel plants located at Salem, Durgapur, and Bhadravathi. SAIL produces a broad spectrum of steel products including hot and cold rolled sheets, galvanized sheets, electrical steel, structural steel, railway products, and pipes, serving various sectors of the Indian economy.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Objective<\/span><\/b><\/p>\n

To calculate the beta coefficient of Steel Authority of India Limited (SAIL) with respect to Nifty 50 and observe its statistical significance.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Literature Review<\/span><\/b><\/p>\n

Reinganum, M. R. (1981). A new empirical perspective on the CAPM. Journal of Financial and Quantitative Analysis, 16(4), 439-462.<\/span><\/p>\n

Basu, S. (1977). Investment performance of common stocks in relation to their price\u2010earnings ratios: A test of the efficient market hypothesis. The Journal of Finance, 32(3), 663-682.<\/span><\/p>\n

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

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Data Collection:<\/span><\/u><\/b><\/p>\n

Data for SAIL and Nifty 50 was downloaded from nseindia.com for the period 1st December 2024 to 30th November 2025. Friday closing prices were identified, and weekly returns of Nifty 50 and SAIL were calculated. Weekly returns of Nifty 50 were taken as X (independent variable) and weekly returns of SAIL were taken as Y (dependent variable). Y was regressed on X using linear regression analysis.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Data Analysis:<\/span><\/b><\/p>\n

SAIL Return = -0.1847 + 1.2836 (Nifty Return)<\/span><\/p>\n

N = 48, R\u00b2 = 0.4521, F = 37.94, p-value < 0.001<\/span><\/p>\n

The above equation shows the relationship between SAIL’s weekly returns and Nifty 50’s weekly returns. The beta coefficient is 1.2836, which indicates that SAIL is a high-beta stock with greater volatility than the market. When Nifty 50 returns increase by 1%, SAIL’s returns are expected to increase by approximately 1.28%, and vice versa.<\/span><\/p>\n

The t-statistic for the beta coefficient (Nifty Return) is 6.16 and the p-value is less than 0.001, indicating that beta is statistically significant at the 1% level. The sample size is 48 observations (weekly returns). R\u00b2 is 0.4521, which means 45.21% of the variance in SAIL’s returns is explained by Nifty 50’s returns. The remaining 54.79% represents unexplained variance due to company-specific factors such as government policies, steel industry dynamics, raw material prices, and other variables not included in the model.<\/span><\/p>\n

The F-statistic is 37.94 with a p-value less than 0.001, which is highly significant, confirming that the overall regression model is statistically significant at the 1% level.<\/span><\/p>\n

Conclusion:<\/span><\/b><\/p>\n

Since beta is more than 1 (\u03b2 = 1.2836), investors should consider investing in SAIL for short-term purposes if Nifty 50 is expected to rise. <\/span><\/p>\n

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References:<\/span><\/b><\/p>\n

NSE INDIA ,NSE Index<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Title: Relationship of Steel Authority of India Limited (SAIL) with Nifty 50 \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Author: Srashti Agrawal \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Introduction: Steel Authority of India Limited (SAIL) is India’s largest state-owned steel-making company, under the administrative control of the Ministry of Steel, Government of India. Established in 1954, SAIL is one of the largest public sector undertakings… Continue reading Relationship of Steel Authority of India Limited (SAIL) with Nifty 50<\/span><\/a><\/p>\n","protected":false},"author":140045,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23471","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\/23471","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\/140045"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23471"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23471\/revisions"}],"predecessor-version":[{"id":23472,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23471\/revisions\/23472"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23471"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}