RELATIONSHIP OF NIFTY WITH POWER GRID CORPORATION OF INDIA LIMITED<\/b><\/p>\n
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AUTHOR -: Pratham Wagh<\/b><\/p>\n
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Introduction -:\u00a0<\/b><\/p>\n
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 Company, with 51.34% holding of Government of India and the balance is held by Institutional Investors and public.<\/span>\u00a0<\/span><\/p>\n POWERGRID is mainly engaged in the business of transmission of power through its EHVAC\/HVDC transmission network. The company has diversified into telecom business by leveraging its Pan India transmission network through stringing of optical ground wire(OPGW).POWERGRID has provided\/providing consultancy services to domestic and international clients by leveraging its capability and experience in the field of power transmission, sub transmission, distribution management, load dispatch & communication etc.<\/span> Format of regression equation: Y =\u03b1 + \u03b2(X)<\/span><\/p>\n Returns of the Power Grid Corporation of India = <\/span>-0.462899149<\/span>+<\/span>0.981095942<\/span>returns of Nifty 50<\/span><\/p>\n (1.772333007)<\/span><\/p>\n N =\u00a0 48, R Square = <\/span>0.063921243<\/span>, F = <\/span>3.141164288<\/span> P value = <\/span>0.082962103<\/span><\/p>\n \u00a0<\/b><\/p>\n Interpretation<\/b>:<\/b><\/p>\n The above equation shows the relationship between the weekly returns of Power Grid Corporation of India and the weekly ,returns of Nifty 50. Positive sign means direct relationship, meaning if Nifty 50 rises <\/span>Power Grid Corporation of India<\/span> also rises and vice versa. If Nifty50 rises by 1 unit, Power Grid Corporation of India will rise by 0.981 units\u00a0 and vice versa.<\/span><\/p>\n The value inside bracket is t-stat for b, the P-value for which is <\/span>0.082962103<\/span> which is more than 0.05 meaning b is statistically not significant at 5% level.<\/span><\/p>\n Number of observations are 48. R square is\u00a0 <\/span>0.063921243 <\/span>\u00a0meaning only 6% of Power Grid Corporation of India is explained by weekly returns of Nifty 50. Balance 94% is the error due to other variables which are not in the model.<\/span><\/p>\n F is <\/span>3.141164288<\/span>, the P-value for which is <\/span>0.082962103<\/span> which is more than 0.05 meaning overall the model is statistically not significant at 5% level.<\/span><\/p>\n \u00a0<\/span><\/p>\n Conclusion:<\/span><\/p>\n As \u03b2(<\/span>0.981095942<\/span>) is less than 1, it is good to invest in Power Grid Corporation of India for long term.<\/span><\/p>\n \u00a0<\/p>\n","protected":false},"excerpt":{"rendered":" RELATIONSHIP OF NIFTY WITH POWER GRID CORPORATION OF INDIA LIMITED \u00a0 AUTHOR -: Pratham Wagh \u00a0 Introduction -:\u00a0 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 Company, with… Continue reading RELATIONSHIP OF NIFTY WITH POWER GRID CORPORATION OF INDIA LIMITED<\/span><\/a><\/p>\n","protected":false},"author":139304,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9],"tags":[],"class_list":["post-20790","post","type-post","status-publish","format-standard","hentry","category-management","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/20790","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\/139304"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=20790"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/20790\/revisions"}],"predecessor-version":[{"id":20791,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/20790\/revisions\/20791"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=20790"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=20790"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=20790"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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<\/b>Objective -: <\/b>To find out Beta of <\/span>Power Grid Corporation of India Limited <\/span>and It\u2019s significance<\/span>
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<\/b>Data collection -:<\/b>
<\/b> Data for Nifty 50 and <\/span>POWERGRID has been downloaded from <\/span>NSE INDIA.com<\/span> for the period 01-02-2023 to 31-01-2024 Weekly closing price were found out Weekly return were calculated. weekly returns of POWERGRID were regressed on weekly return of Nifty.<\/span>
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<\/span>Data Analysis -:<\/b>\u00a0<\/span><\/p>\n