Tittle : – Relationship of Satluj Jal Vidyut Nigam with Nifty 50
Author: – Sandesh Naik
Introduction:-
SJVN Limited is a public sector enterprise under the control of the Ministry of Power, Government of India. It was established on May 24, 1988, as a joint venture between the Government of India and the Government of Himachal Pradesh. The company is primarily involved in the hydroelectric power industry and engages in power trading, thermal power, wind power, solar power, power transmission, and consultancy services. Its headquarters are in Shimla, Himachal Pradesh, India.
Objective : –
To find out beta of Satluj Jal Vidyut Nigam and its significance.
Data collection: – Data of Nifty fifty was download from the period 1/4/24 to 30/4/24 from NSE Site. Then we find out Friday weekly closing prices for Nifty 50 & Satluj Vidyut Nigam.
Weekly returns were calculated (Yt+1 -Yt) /Yt *100 and then weekly return of Nifty was x and Y was for the weekly return of Satluj Jal Nigam company.
Y was regressed on X.
Data Analysis: –
Weekly Return = – 1.69 + 1.56 weekly returns of Nifty 50, Observation N = 48, R2 = 0.09 , Frequency = 4.43, Significance Value = 0.04
The above equation shows the relationship between Nifty 50 & SJVN Company positive sign before the coefficient of Nifty 50 tells us that there is a positive relationship if Nifty rises 1 unit Adani Ports rises by 1.56 and vice versa
T stats ( -1.69) and the P value for which is 0.04 is more than 0.05 meaning, it is statistically significant N= 48,R=0.09 means 9% of SVJN return are explained by Nifty 50
F = 4.43 And P value for that is 0.04 is less than 0.05 meaning overall model Is -1.69 +1.56 model is significant at 5% Level
Conclusion: –
1.56 > 1 and positive (more than 1) means good for short term investments