\u00a0<\/p>\n
RESEARCH METHODOLOGY ASSIGNMENT<\/span><\/span><\/p>\n \u00a0<\/p>\n Relation between Nifty and <\/span><\/span>National Thermal Power Corporation Limited<\/span><\/span>(NTPC LTD)<\/span><\/span><\/p>\n AUTHOR: –<\/span><\/span> Nidhi Manoj Belose <\/span><\/span>(FINANCE- 1) <\/span><\/span><\/p>\n Roll. No.: <\/span><\/span>212300237<\/span><\/span>04<\/span><\/span><\/p>\n \u00a0<\/p>\n Introduction: –<\/span><\/span><\/p>\n NTPC, formerly known as National Thermal Power Corporation, is India’s energy powerhouse, playing a pivotal role in lighting up the nation. Founded in 1975, it’s the country’s largest power utility, boasting an impressive installed capacity exceeding 73 GW across diverse sources like coal, gas, hydro, and renewables. NTPC is not just a generator of electricity; it’s a driving force in India’s energy transition, actively pursuing sustainable solutions like green hydrogen and battery storage to reduce carbon footprint and secure a brighter future. Its commitment to excellence and social responsibility has earned it a reputation as a reliable and responsible corporate citizen, contributing significantly to India’s economic and social progress.<\/span><\/span><\/p>\n \u00a0<\/p>\n Objective: – <\/span><\/span><\/p>\n To Calculate Beta(<\/span><\/span>\u03b2<\/span><\/span>) and its significance of the equity stock of <\/span><\/span>NTPC<\/span><\/span> Ltd.<\/span><\/span><\/p>\n \u00a0<\/p>\n Reviews: –<\/span><\/span><\/p>\n NTPC is India\u2019s largest power generation company with a total installed capacity of 69134 MW at the group level. \u00b7 NTPC has 17% of total installed capacity in India with 24% generation share \u00b7 The company\u2019s vision is to become a 130 GW+ company by 2032 of which 60 GW would be contributed by renewable <\/span><\/span>energy<\/span><\/span> has grown through organic and inorganic routes and added around ~30 MT of capacity in the last three years. It has shown its capability to successfully integrate the acquired assets and ramped up its utilisation in a profitable manner.<\/span><\/span><\/p>\n \u00a0<\/p>\n Data Collection: –<\/span><\/span><\/p>\n Data from nseindia.com covering the period from January 11, 2022, to October 31, 2023, was acquired for Nifty and NTPC Ltd. Subsequently, all columns, except for date and closing price, were removed from both datasets. The closing prices on Fridays were identified for Nifty and NTPC Ltd. The weekly returns for Nifty (denoted as X) and <\/span><\/span>Equity <\/span><\/span>(de<\/span><\/span>no<\/span><\/span>ted as Y) were then computed. A linear regression analysis was performed on the weekly returns of Nifty (X) and <\/span><\/span>NTPC<\/span><\/span> (Y).<\/span><\/span><\/p>\n Data Analysis: –<\/span><\/span><\/p>\n The regression equation has the form:<\/span><\/span><\/p>\n Y = a + b*X<\/span><\/span><\/p>\n Where, Y is the dependent variable, <\/span><\/span><\/p>\n \u00a0X is the independent variable, <\/span><\/span><\/p>\n \u00a0a is the intercept,<\/span><\/span><\/p>\n \u00a0b is the slope.<\/span><\/span><\/p>\n In our case <\/span><\/span>NTPC <\/span><\/span>Ltd is the dependent variable and Nifty 50 is the independent variable.<\/span><\/span><\/p>\n Intercept, a <\/span><\/span>=<\/span><\/span>45401.20515<\/span><\/span><\/p>\n Slope, b <\/span><\/span>= <\/span><\/span>-0.01431232<\/span><\/span><\/p>\n R Square <\/span><\/span>= <\/span><\/span>0.210585122<\/span><\/span><\/p>\n F <\/span><\/span>= <\/span><\/span>12.53776816<\/span><\/span><\/p>\n So, the regression equation is –<\/span><\/span><\/p>\n Y (NTPC LTD.) <\/span><\/span>= <\/span><\/span>45401.20515 – 0.01431232<\/span><\/span>*X (Independent Variable)<\/span><\/span><\/p>\n The analysis reveals a weak relationship between NTPC LTD. and the Nifty 50 index. A one-unit increase in Nifty 50 is associated with a predicted rise of 0.0143 units in NTPC LTD. However, the low R-squared value (0.21) suggests only 21% of NTPC LTD.’s variability is explained by Nifty 50. The p-value (0.0009) indicates statistical significance, but caution is needed due to a small effect size and a broad confidence interval (-0.0224 to -0.0062) for the coefficient of X Variable 1. While a positive slope hints at a possible positive correlation, the overall relationship is tentative.<\/span><\/span><\/p>\n Conclusion: –<\/span><\/span><\/p>\n Beta <\/span><\/span>is –<\/span><\/span>0.01431232<\/span><\/span> which is <\/span><\/span>less<\/span><\/span> than 1, it <\/span><\/span>means NTPC LTD <\/span><\/span>is <\/span><\/span>better<\/span><\/span> for <\/span><\/span>long<\/span><\/span>-term investment.<\/span><\/span><\/p>\n \u00a0<\/p>\n Reference: –<\/span><\/span><\/p>\n https:\/\/www.nseindia.com\/<\/span><\/span><\/a><\/p>\n https:\/\/www.icicidirect.com\/research\/equity\/ntpc-ltd\/16741<\/span><\/span><\/a><\/p>\n https:\/\/www.ntpc.co.in\/<\/span><\/span><\/a><\/p>\n \u00a0<\/p>\n","protected":false},"excerpt":{"rendered":" \u00a0 RESEARCH METHODOLOGY ASSIGNMENT \u00a0 Relation between Nifty and National Thermal Power Corporation Limited(NTPC LTD) AUTHOR: – Nidhi Manoj Belose (FINANCE- 1) Roll. No.: 21230023704 \u00a0 Introduction: – NTPC, formerly known as National Thermal Power Corporation, is India’s energy powerhouse, playing a pivotal role in lighting up the nation. Founded in 1975, it’s the country’s… Continue reading Relation between Nifty and National Thermal Power Corporation Limited (NTPC LTD)<\/span><\/a><\/p>\n","protected":false},"author":139092,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-19345","post","type-post","status-publish","format-standard","hentry","category-finance","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19345","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\/139092"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19345"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19345\/revisions"}],"predecessor-version":[{"id":19346,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19345\/revisions\/19346"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19345"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19345"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19345"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}