CALCULATION OF BETA OF POWER GRID CORPORATION OF INDIA LIMITED AND ITS SIGNIFICANCE<\/p>\n
NAME OF THE AUTHOR: POOJA SHUKLA<\/p>\n
INTRODUCTION
\nPower Grid Corporation of India Limited (PowerGrid), is a Schedule \u2018A\u2019, \u2018Maharatna\u2019 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.<\/p>\n
OBJECTIVES
\nTo calculate beta of Power Grid Corporation of India Limited and its significance<\/p>\n
DATA COLLECTION
\nData of Power Grid Corporation of India Limited from 01-12-2021 to 30-11-2022 from NSE website
\n\u2022\tFriday weekly closing prices has been found out
\n\u2022\tWeekly Return have been calculated with the formula of (Y2-Y1)\/Y1*100
\n\u2022\tWeekly Return of Equity have been regressed on Weekly Return of Nifty
\nDATA ANALYSIS
\nWeekly Return of Power Grid Corporation = 1.240 + 1.150 Weekly Return of Nifty + E
\n\u2022\tt-stat = 1.41065
\n\u2022\tR2 = 0.805
\n\u2022\tF = 198.5383
\n\u2022\tN = 50
\nThe above equation tells us the relationship between Weekly Return of Power Grid Corporation and Weekly Return of Nifty. The positive sign means that there is a direct relationship. If nifty rises, equity rises and if nifty falls, equity falls. The co-efficient of weekly return of nifty is 1.150, which means if nifty rises by 1 unit, Power Grid Corporation will rise by 1.150 units and vice versa.
\nNumber of Observations are 50 and t-stat is 1.41065.
\nP value is 0, which is less than 0.05, means that b is statistically significant at 5%. Even it is less than 0.01, b is statistically significant at 1% level.
\nR2 is 0.805, which means that 80.5% of Y (Power Grid Corporation) is explained by X (nifty), balance of 19.5% is error. Error is due to the variables which are not in the model.
\nF is 198.5383, the P value for which is 0 < 0.01, means overall the model is statistically significant.<\/p>\n
CONCLUSION
\nSince b = 1.150 is greater than 1, it is statistically significant.
\nPower Grid Corporation Limited is a good option for investment because for every increase in nifty there will an increase in the equity of Power Grid Corporation.<\/p>\n","protected":false},"excerpt":{"rendered":"
CALCULATION OF BETA OF POWER GRID CORPORATION OF INDIA LIMITED AND ITS SIGNIFICANCE NAME OF THE AUTHOR: POOJA SHUKLA INTRODUCTION Power Grid Corporation of India Limited (PowerGrid), is a Schedule \u2018A\u2019, \u2018Maharatna\u2019 Public Sector Enterprise of Govt. of India which was incorporated on 23rd Oct 1989 under the Company Act, 1956. PowerGrid is a listed… Continue reading CALCULATION OF BETA OF POWER GRID CORPORATION OF INDIA LIMITED AND ITS SIGNIFICANCE<\/span><\/a><\/p>\n","protected":false},"author":108070,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,37,38,46],"tags":[1717],"class_list":["post-16829","post","type-post","status-publish","format-standard","hentry","category-business","category-economics","category-finance","category-investing","tag-linvesting-analysis-research","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16829","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/users\/108070"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16829"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16829\/revisions"}],"predecessor-version":[{"id":16849,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/16829\/revisions\/16849"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16829"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16829"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16829"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}