{"id":23043,"date":"2025-12-19T16:14:53","date_gmt":"2025-12-19T10:44:53","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23043"},"modified":"2025-12-19T16:14:53","modified_gmt":"2025-12-19T10:44:53","slug":"regression-between-power-grid-corporation-of-india-and-nifty-50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23043","title":{"rendered":"Regression between Power Grid Corporation of India and nifty 50"},"content":{"rendered":"

Relationship of Nifty 50<\/span><\/u><\/b><\/p>\n

\u00a0<\/span>with<\/span><\/u><\/b><\/p>\n

\u00a0<\/span>Power Grid Corporation of India<\/span><\/u><\/b><\/p>\n

\u00a0<\/span><\/p>\n

\u00a0<\/span><\/b><\/p>\n

About<\/span><\/u><\/b> Power Grid Corporation of India<\/span><\/u><\/b><\/p>\n

Power Grid Corporation of India Limited (POWERGRID) is India’s largest electric power transmission utility, a ‘Maharatna’ public sector enterprise under the Government of India, established in 1989.\u200b<\/span><\/p>\n

Key Facts<\/span><\/b><\/p>\n

It manages over 164,000 circuit km of transmission lines from its Gurugram headquarters. POWERGRID ensures reliable power evacuation and supports national electrification goals.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Objectives of this study <\/span><\/u><\/b><\/h1>\n

To calculate the beta of <\/span>Power Grid Corporation of India Limited <\/span>and observe its significance.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Data collection<\/span><\/u><\/p>\n

The historical data of <\/span>Power Grid Corporation of India Limited <\/span>and nifty 50 index data was downloaded from the website from the period 1\/12\/24 to 30\/11\/25. The data was manipulated to get Friday closing prices. <\/span><\/p>\n

\u00a0<\/span><\/p>\n

Data analysis<\/span><\/u><\/p>\n

The intercept = a = -13.71412364<\/span><\/p>\n

Coefficient = -bx = 0.000581886<\/span><\/p>\n

a + bx = -13.71412364-0.000581886bx<\/span><\/p>\n

The above equation tells us the relationship between nifty 50 and equity of Power Grid Corporation of India Limited, negative sign means if equity of Power Grid Corporation of India Limited, demand will fall and vice versa. If the equity rises by 1 unit, the nifty 50 will fall by 0.000581886 units.<\/span><\/p>\n

\u00a0<\/span><\/p>\n

t-stat for beta is 1.244099866, p value of which is 21.9904325 is more than 0.05, rather beta is not statistically significant at 1% level so you cannot say that Power Grid reliably goes up when Nifty goes up, based on this data . R square is 0.033251518\u00a0 <\/span>= 0.03 which means 3%\u00a0 <\/span>of the Power Grid are\u00a0 <\/span>explained by nifty 50, 97% is due to other reason. – the equation is <\/span><\/p>\n

\u00a0 <\/span>Power Grid price = 13.7 + 0.00058 \u00d7 Nifty 50 level.\u00a0 <\/span><\/span><\/p>\n

– Even if Nifty changes by 1000 points, the predicted change in Power Grid is only about 0.58 rupees, which is very small. F is 0.219904325 and the p value is 0.233689028, the overall model is not statistically significant. <\/span><\/p>\n

No of observations = 47<\/span><\/p>\n

R square = 0.033251518<\/span><\/p>\n

F \u2013 value = 1.547784477<\/p>\n

\u00a0<\/p>\n

References<\/span><\/u><\/b><\/p>\n

Frost, J. (2017). How to Interpret R<\/span>\u2011<\/span>squared in Regression Analysis.<\/span><\/p>\n

Gujarati, D. N., & Porter, D. C. (2009). Basic Econometrics (5th ed.). McGraw<\/span>\u2011<\/span>Hill.<\/span><\/p>\n

\u00a0<\/span><\/span><\/u><\/p>\n

Conclusion <\/span><\/u><\/b><\/p>\n

– Nifty 50 has very little power to explain or predict Power Grid\u2019s price using this one<\/span>\u2011<\/span>year Friday data.\u00a0 <\/span><\/span><\/p>\n

– Power Grid mainly moves because of its own company and sector factors, not because of the overall market index, so this simple regression is weak and not suitable for trading or forecasting.<\/u><\/span><\/p>\n

\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Relationship of Nifty 50 \u00a0with \u00a0Power Grid Corporation of India \u00a0 \u00a0 About Power Grid Corporation of India Power Grid Corporation of India Limited (POWERGRID) is India’s largest electric power transmission utility, a ‘Maharatna’ public sector enterprise under the Government of India, established in 1989.\u200b Key Facts It manages over 164,000 circuit km of transmission… Continue reading Regression between Power Grid Corporation of India and nifty 50<\/span><\/a><\/p>\n","protected":false},"author":139894,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23043","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23043","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\/139894"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23043"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23043\/revisions"}],"predecessor-version":[{"id":23044,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23043\/revisions\/23044"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23043"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23043"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23043"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}