Relationship of Nifty 50

 with

 Power Grid Corporation of India

 

 

About Power Grid Corporation of India

Power Grid Corporation of India Limited (POWERGRID) is India’s largest electric power transmission utility, a ‘Maharatna’ public sector enterprise under the Government of India, established in 1989.​

Key Facts

It manages over 164,000 circuit km of transmission lines from its Gurugram headquarters. POWERGRID ensures reliable power evacuation and supports national electrification goals.

 

Objectives of this study

To calculate the beta of Power Grid Corporation of India Limited and observe its significance.

 

Data collection

The historical data of Power Grid Corporation of India Limited and nifty 50 index data was downloaded from the website from the period 1/12/24 to 30/11/25. The data was manipulated to get Friday closing prices.

 

Data analysis

The intercept = a = -13.71412364

Coefficient = -bx = 0.000581886

a + bx = -13.71412364-0.000581886bx

The above equation tells us the relationship between nifty 50 and equity of Power Grid Corporation of India Limited, negative sign means if equity of Power Grid Corporation of India Limited, demand will fall and vice versa. If the equity rises by 1 unit, the nifty 50 will fall by 0.000581886 units.

 

t-stat for beta is 1.244099866, p value of which is 21.9904325 is more than 0.05, rather beta is not statistically significant at 1% level so you cannot say that Power Grid reliably goes up when Nifty goes up, based on this data . R square is 0.033251518  = 0.03 which means 3%  of the Power Grid are  explained by nifty 50, 97% is due to other reason. – the equation is

  Power Grid price = 13.7 + 0.00058 × Nifty 50 level. 

– Even if Nifty changes by 1000 points, the predicted change in Power Grid is only about 0.58 rupees, which is very small. F is 0.219904325 and the p value is 0.233689028, the overall model is not statistically significant.

No of observations = 47

R square = 0.033251518

F – value = 1.547784477

 

References

Frost, J. (2017). How to Interpret R‑squared in Regression Analysis.

Gujarati, D. N., & Porter, D. C. (2009). Basic Econometrics (5th ed.). McGraw‑Hill.

 

Conclusion

– Nifty 50 has very little power to explain or predict Power Grid’s price using this one‑year Friday data. 

– Power Grid mainly moves because of its own company and sector factors, not because of the overall market index, so this simple regression is weak and not suitable for trading or forecasting.