Relationship of Nifty with Adani Power Ltd.

1. INTRODUCTION

• Adani Power Limited (APL), founded in 1996, has grown into India’s largest private thermal power producer and a flagship energy company within the Adani Group. Headquartered in Ahmedabad, Gujarat, the company plays a significant role in India’s energy sector through large-scale power generation across multiple states using advanced technologies like supercritical and ultra-supercritical units. Its portfolio also includes a small solar power capacity, and it operates under a combination of long-term Power Purchase Agreements (PPAs) and merchant sales to meet rising electricity demand.

2. OBJECTIVE

• To calculate β of Adani Power Ltd and observe its significance.

3. DATA COLLECTION

• Historical data of Adani Power Ltd and NIFTY50 index data (downloaded from NSE website for the period 01-Dec-24 to 30-Nov-2025).

• The data was manipulated to get Friday closing prices.

4. LITERATURE REVIEW

Singh and Bhargavi (2023) studied the impact of external financial disclosures on Adani Power Ltd and found that negative reports significantly affected the company’s stock price. Their study highlights the importance of corporate governance, transparency, and investor confidence in the power sector.

5. DATA ANALYSIS

• Regression Equation: – 

y = -7.654246851x  -8.358538918

where: –

y = Weekly Return for Adani Power Ltd.

x = Weekly Return for NIFTY

This equation tells us that if weekly returns of NIFTY increases, then weekly return for Adani Power Ltd also increases.

• Number of Observations = 48

• t-stat for β = -1.808419488

• p-value = 0.077080806 × 10⁻⁶ This indicates that since p-value < 0.05, β is statistically significant at 1% level.

• R2 = 0.066376208  This indicates that around 36% of the weekly return for Adani Power Ltd is explained by the weekly return for NIFTY. 64% is the error due to the other variables which are not in model.

• F = 3.270381043  The overall model is statistically significant.

6. CONCLUSION

Here β = -7.654246851x  Since β ≤ 1, it is good for long-term investment if NIFTY rises.

7. REFERENCES

• Singh, N. & Bhargavi, K. S. (2023). Impact of external financial disclosures on the stock price of Adani Power Ltd. International Journal of Latest Technology in Engineering, Management & Applied Science.

 

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