1. INTRODUCTION
· NHPC Limited is an Indian public sector hydropower company that was incorporated in 1975 to plan, promote and organise an integrated and efficient development of hydroelectric power.
· The company has expanded its capabilities to include other sources of energy like solar, geothermal, tidal, and wind.
· NHPC operates as a central public sector undertaking (PSU) and is a key player in India’s renewable energy landscape, contributing significantly to the national grid.
2. OBJECTIVE
To calculate β of NHPC and observe its significance in relation to the NIFTY50 index.
3. DATA COLLECTION
· Source: Historical data for NHPC and the NIFTY50 index was sourced from the NSE website.
· Period: The data covers the period from December 2024 to November 2025.
· Processing: The daily data was filtered and manipulated to obtain Friday closing prices to analyze weekly returns.
4. LITERATURE REVIEW
Recent market analysis indicates that NHPC has shown resilience in its operational capacity, though it faces challenges such as fluctuations in power generation and high debt-to-equity ratios. Analysts note that while its revenue has seen growth, its net profit has experienced some volatility due to operational hurdles.
5. DATA ANALYSIS
· Regression Equation: –
y = 1.4654x+ 0.4719
where: –
y = Weekly Return of NHPC
x = Weekly returns of the NIFTY 50 index.
The equation suggests a positive linear relationship: as the market returns increase, the stock’s returns are also expected to increase, but at a slightly slower pace than the market itself.
· Number of Observations = 48
· t-stat for β = 5.089304454
· p-value = 6.51 × 10⁻⁶ èThis indicates that since p-value < 0.05, β is statistically significant at 1% level.
· R2 = 0.360231605754144 è This indicates that approximately 36.02% of the variance in NHPC’s weekly returns is explained by the NIFTY’s movements. The remaining 63.98% is due to other factors not included in this model.
· F = 6.51009099517 è The overall model is statistically significant.
6. CONCLUSION
The analysis reveals that NHPC is a high-beta stock ($beta = 1.4654$)17. It tends to amplify market movements, making it suitable for aggressive investors seeking higher returns during bullish market phases, though it carries higher risk during market downturns18. The positive alpha of 0.4719 suggests a slight baseline weekly return independent of market fluctuations during the period studied.
7. REFERENCES
· NHPC Limited. (2025). Annual Report 2024-25. Retrieved from the official website: https://www.nhpcindia.com.
· Moneycontrol. (2025). NHPC Stock Analysis and Shareholding Pattern. Retrieved from: https://www.moneycontrol.com/india/stockpricequote/power-generation-distribution/nhpc/NHE.