TITLE- RELATIONSHIP OF POWERGRID CORPORATION OF INDIA WITH NIFTY 50.
AUTHOR- PANKTI MANSUKH SAVLA (MMS First year, Roll no. 0222054) Kohinoor Business School, Kurla.
INTRODUCTION
Power Grid Corporation of India Limited (POWERGRID), is a Schedule ‘A’, ‘Maharatna’ Public Sector Enterprise of Govt. of India which was incorporated on 23rd Oct 1989 under the Company Act, 1956. POWERGRID is a listed Company, with 51.34% holding of Government of India and the balance is held by Institutional Investors and public. India’s largest Electric Power Transmission Utility, Listed Company since 2007, consistently rated “Excellent” under Memorandum of Understanding with Ministry of Power since 1993-94.
OBJECTIVES
To Calculate Beta of Power Grid Corporation of India and Observe its significance.
VIEW AND REVIEWS
The data for these periods has been downloaded from these side then friendly closing return find out weekly closing taken as X and weekly return closing return taking as Y.
SHRI K. SREEKANT (59 years), is Chairman & Managing Director of our Company. He is CMA and PGDM (Finance) from Management Development Institute, Gurgaon. He has over 34 years of experience in the power sector in the areas of long term financial planning, investment appraisals, formulation of capital budgets, resource mobilization from domestic and international markets, corporate accounts, commercial, regulatory affairs and enterprise resource planning systems. He was appointed as CMD in August, 2019.
SHRI DILIP NIGAM is M. Tech. in Energy Technology from Asian Institute of Technology, Bangkok, Thailand. His specialization is in Solar Energy and Wind Energy. After working in the private sector initially for few years, he joined the Ministry of New and Renewable Energy in 1987. He worked in wind energy programme of the Ministry for 16 years, when many important policies for development of wind energy sector in the Country were initiated. The Centre for Wind Energy Technology (C-WET) now NIWE was established under his guidance & supervision. In the Ministry, he has worked for 21 years on Solar Energy Programmes. Shri Nigam is presently working in the Ministry as Adviser/Scientist “G” (National Solar Mission) and dealing with important schemes to promote solar power development in the Country. He was appointed as Govt. Nominee Director on our Board in June, 2022.
DATA COLLECTION
Data from 01/07/2022 to 30/06/2023 has been download from NSE India site and Friday Closing Price were found out then weekly returns of Nifty 50 (X) and weekly returns for the PowerGrid Corporation of India (Y) was calculated Nifty50 part as X and Equity of Company is Y. Y was regressed on X.
DATA ANALYSIS
Equation “^y =-0.03296 – 0.46611x”
(t stat = -0.10902)
N= 50
R^2 = 0.000248
F = 4.0430
The above equation shows relationship between the closing price of Nifty 50 (x) and the closing price PowerGrid Corporation of India (Y). The negative sign means negative relationship, meaning if X rises Y falls and vice versa. If X rises by 1 unit Y falls by -0.03296 “n” means there are 50 observations, and figures in brackets are tstat for “b”, so “b” is not as Calculated tstat for b i.e., is-0.10902 lower than tabulated t(t0.5,49DF=1.6770) so accept H0 and Reject H1. R2 0.000248 is means 0.02% of y is explained by x. As the calculated value of F =0.011886 is less than the tabulated F (F 0.05,1DF,49DF) = 4.0430, the overall model is not statistically significant at the 5% level.
So overall the model is statistically not significant at the 5% level.
CONCLUSION
If b<1, PowerGrid Corporation of India Is good for long term investment.
REFERENCE