{"id":19570,"date":"2024-01-02T16:04:51","date_gmt":"2024-01-02T10:34:51","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=19570"},"modified":"2024-01-02T16:04:51","modified_gmt":"2024-01-02T10:34:51","slug":"relationship-between-nifty-power-grid-corporation-of-india","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=19570","title":{"rendered":"Relationship Between Nifty & Power Grid Corporation of India"},"content":{"rendered":"

Author: <\/span>Priyanshu<\/span> Khare<\/span> (<\/span>F3 <\/span>Batch)<\/span><\/p>\n

\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Roll No \u2013 21230023<\/span>791<\/span><\/p>\n

\u00a0<\/p>\n

Introduction: <\/span><\/p>\n

Power Grid Corporation of India Limited (POWERGRID) is a <\/span>Maharatna<\/span> public sector undertaking under the ownership of the Ministry of Power, Government of India. It is the principal power transmission company of India, responsible for transmitting about 50% of the total power generated in the country through its vast network of over 167,000 circuit <\/span>kilometers<\/span> of transmission lines and 252 substations.<\/span><\/p>\n

Formation: Established in 1989 as the National Power Transmission Corporation Limited, it later adopted its current name in 1992.<\/span><\/p>\n

Function: Primarily responsible for planning, executing, owning, operating, and maintaining high-voltage power transmission systems across India.<\/span><\/p>\n

Network: Operates a vast network of over 167,000 circuit <\/span>kilometers<\/span> of transmission lines and 252 substations, spanning across the country.<\/span><\/p>\n

Transmission Capacity: Transmits about 50% of the total power generated in India.<\/span><\/p>\n

Subsidiaries: Has six <\/span>wholly-owned<\/span> subsidiaries, including Power System Operation Corporation Limited (POSOCO), which manages the national grid.<\/span><\/p>\n

Achievements: Consistently rated ‘Excellent’ by the Government of India, recognized for its efficient transmission services and contribution to the national grid.<\/span><\/p>\n

POWERGRID plays a crucial role in India’s power infrastructure, ensuring efficient and reliable transmission of electricity across the country. It has been instrumental in integrating the regional grids and strengthening the national power grid, contributing significantly to the nation’s economic growth and development.<\/span><\/p>\n

Objective: <\/span><\/p>\n

To become a global leader in the power transmission sector. POWERGRID is working to expand its operations overseas and to become a leading provider of transmission services.<\/span><\/p>\n

To promote the use of renewable energy. POWERGRID is investing in the development of transmission infrastructure for renewable energy sources such as solar and wind power.<\/span><\/p>\n

To ensure the reliable and efficient transmission of electricity. POWERGRID works to minimize transmission losses and ensure that electricity is delivered to consumers at the required voltage and frequency.<\/span><\/p>\n

To develop, operate, and maintain the national and regional power grids in India. This includes building and maintaining transmission lines, substations, and other infrastructure needed to move electricity from generating stations to consumers.<\/span><\/p>\n

\u2022 <\/span>PGCIL’s net profit and revenue both grew year-on-year in the third quarter.<\/span><\/div>\n
\u2022 <\/span>The company’s mainstay transmission business reported moderate revenue growth of 8% on-year.<\/span><\/div>\n
\u2022 <\/span>Operating profit saw an 8.5% year-on-year increase, but operating margin contracted slightly.<\/span><\/div>\n
\u2022 <\/span>PGCIL declared an interim dividend of \u20b95 per share for the current financial year.<\/span><\/div>\n
\u2022 <\/span>Power Grid’s standalone net profit also rose 10.5% year-on-year to Rs 3,701.72 crore <\/span>in \u00a02023<\/span>.<\/span><\/div>\n
\u2022 <\/span>Revenue from operations grew 7.4% on year to Rs 10,746.40 crore.<\/span><\/div>\n
\u2022 <\/span>Earnings before interest, taxes, <\/span>depreciation<\/span> and amortization (EBITDA) rose nearly 8% on-year to Rs 9,380 crore.<\/span><\/div>\n

\u00a0<\/p>\n

Data Collection:<\/span><\/p>\n

Data regarding the equity and nifty of <\/span>Power Grid Corporation <\/span>Of<\/span> India Ltd<\/span> has been downloaded from nseindia.com. After going in the historical data, the data of 1 year was taken from 1<\/span>st<\/span> october<\/span> 2022 to 30<\/span>th<\/span> September <\/span>2023. <\/span><\/p>\n

To simplify the process and see just the information needed the columns were deleted except date and closing rate. A column was added of the weekday in the data sheet and then the returns of equity and nifty were found by using the formula (Current dates price \u2013 Previous Dates price)\/Previous date price * 100. <\/span><\/p>\n

Further a regression table was formed through which an equation was made.<\/span><\/p>\n

Weekly returns of Nifty = X<\/span><\/p>\n

Weekly returns of SUN TV Equity = Y<\/span><\/p>\n

The standard regression equation is. <\/span><\/p>\n

Y = a + <\/span>bx<\/span><\/p>\n

Where, Y is the dependent variable (<\/span>Power Grid Corporation<\/span>)<\/span>\u00a0<\/p>\n

\u00a0X is the independent variable (Nifty)<\/span><\/p>\n

\u00a0a is the intercept,<\/span><\/p>\n

\u00a0b is the slope.<\/span><\/p>\n

In case of <\/span>Power Grid Corporation Ltd<\/span>, <\/span><\/p>\n

The equation formed is: <\/span><\/p>\n

Y =<\/span> 0.211527<\/span> +<\/span> 0.10603<\/span>X<\/span><\/p>\n

Total Observations \u2013 4<\/span>9<\/span><\/p>\n

F \u2013 <\/span>1.764156<\/span><\/p>\n

Significance \u2013 <\/span>0.190521001<\/span><\/p>\n

R square \u2013<\/span> 0.036177304<\/span><\/p>\n

The above equation shows the relationship between Nifty 50 and <\/span>POWER GRID CORPORATION LTD<\/span>. Return of <\/span>POWER GRID CORPORATION<\/span> is dependent variable and Return of Nifty 50 is independent variable. Positive sign means if Nifty50 increases <\/span>POWER GRID CORPORATION<\/span>also increases. If Nifty50 price rises by 1 unit, <\/span>POWER GRID CORPORATION<\/span> share price will rise by <\/span>0.106029581<\/span> and vice versa. No of observation are 4<\/span>9<\/span>. T stat for b is <\/span>1.328215227<\/span> and the P value is <\/span>0.190521001<\/span>, <\/span>suggest that the slope coefficient (0.113) is not statistically significant. R-squared is 0.012, indicating that only a small percentage (1.2%) of the variability in <\/span>POWER GRID CORPORATION<\/span>returns is explained by the Nifty returns. <\/span>Overall model is statistically insignificant at 5% level.<\/span><\/p>\n

\u00a0<\/p>\n

Conclusion:<\/span><\/p>\n

Beta = 0.1095 <\/span><\/p>\n

As beta is less than 1 it is better suited for long term investment. <\/span><\/p>\n

\u00a0<\/p>\n

References:<\/span><\/p>\n

https:\/\/www.zaubacorp.com\/company\/SUN-TV-NETWORK-LIMITED\/L22110TN1985PLC012491<\/span><\/a><\/p>\n

http:\/\/www.nseindia.com\/<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Author: Priyanshu Khare (F3 Batch) \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Roll No \u2013 21230023791 \u00a0 Introduction: Power Grid Corporation of India Limited (POWERGRID) is a Maharatna public sector undertaking under the ownership of the Ministry of Power, Government of India. It is the principal power transmission company of India, responsible for transmitting about 50%… Continue reading Relationship Between Nifty & Power Grid Corporation of India<\/span><\/a><\/p>\n","protected":false},"author":139186,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[38],"tags":[],"class_list":["post-19570","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\/19570","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\/139186"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=19570"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19570\/revisions"}],"predecessor-version":[{"id":19571,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/19570\/revisions\/19571"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=19570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=19570"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=19570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}