TITLE: RELATIONSHIP BETWEEN NIFTY AND REC LIMITED
AUTHOR: ROHIT KRSHNA
INTRODUCTION: – REC Limited, formerly Rural Electrification Corporation Limited is a subsidiary of Power Finance Corporation Limited (PFC) which in turn is under the ownership of the Ministry of Power, Government of India. It finances and promotes power projects across India. The PSU provides loans to Central/State Sector Power Utilities in the country, State Electricity Boards, Rural Electric Cooperatives, NGOs and Private Power Developers. On 20 March 2019, PFC signed the agreement to acquire a 52.63% controlling stake in REC for ₹14,500 crore (US$1.8 billion). On 28 March, PFC announced that it had completed making the payment for the acquisition and intended to merge REC with itself in 2020.
OBJECTIVE: – To calculate the Beta and its Significance.

DATA COLLECTION: – Data for Equity & Nifty has been downloaded from NSE site for the period from 01st Jan,2022 to 31st Dec 2022.The data was edited and manipulated to get Friday closing price, weekly returns were found out of Nifty was considered as” X” and weekly report of equity were considered as “Y”.

DATA ANALYSIS: –
Demand Y= -0.2350-1.0208 Niftyret X+ e
(t-sat= 3.4055)
N=49, R^2= 0.1979, F=0.0013
t-sat of b is shown in bracket is (3.405).
The P-value for this is 0.360 which is more than 0.01 meaning ‘b’ is not statistically significant at 1% level.
N = 49
R^2 = 0.1979 which means 19% of Y is explained by X and balanced 81% is unexplained i.e., error.
F= 0.0013
P value for this is 0.0013 which is less than 0.01 which means that overall model is statistically significant at 1% level.
The above equation tells us about the relationship between Nifty and Equity returns. Positive (+) sign shows inverse relationship which means if market goes down then share price goes up and vice versa.

CONCLUSION: – As Beta is more than 1 it is good for investment, if Beta is less than 1 it is not good for investment if Nifty rises.

Rohit Krshna 021230022134 – OSCM