{"id":23160,"date":"2025-12-20T13:51:21","date_gmt":"2025-12-20T08:21:21","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23160"},"modified":"2025-12-20T13:51:21","modified_gmt":"2025-12-20T08:21:21","slug":"relationship-of-nifty-with-nhpc-limited","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23160","title":{"rendered":"Relationship of Nifty with NHPC Limited"},"content":{"rendered":"

1.\u00a0\u00a0\u00a0 <\/span><\/span><\/span>INTRODUCTION<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>NHPC Limited is an Indian\u00a0<\/span>public sector<\/span><\/a>\u00a0<\/span>hydropower<\/span><\/a>\u00a0company that was incorporated in 1975 to plan, promote and organise an integrated and efficient development of\u00a0<\/span>hydroelectric<\/span><\/a>\u00a0power.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>The company has expanded its capabilities to include other sources of energy like\u00a0<\/span>solar<\/span><\/a>,\u00a0<\/span>geothermal<\/span><\/a>,\u00a0<\/span>tidal<\/span><\/a>, and\u00a0<\/span>wind<\/span><\/a>.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>NHPC operates as a central public sector undertaking (PSU) and is a key player in India’s renewable energy landscape, contributing significantly to the national grid.<\/span><\/p>\n

2.\u00a0\u00a0\u00a0 <\/span><\/span><\/span>OBJECTIVE<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>To calculate \u03b2 of <\/span>NHPC and observe its significance in relation to the NIFTY50 index.<\/span><\/p>\n

3.\u00a0\u00a0\u00a0 <\/span><\/span><\/span>DATA COLLECTION<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Source<\/span><\/b>: Historical data for NHPC and the NIFTY50 index was sourced from the NSE website.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Period<\/span><\/b>: The data covers the period from December 2024 to November 2025.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Processing<\/span><\/b>: The daily data was filtered and manipulated to obtain Friday closing prices to analyze weekly returns.<\/span><\/p>\n

4.\u00a0\u00a0\u00a0 <\/span><\/span><\/span>LITERATURE REVIEW<\/span><\/p>\n

Recent market analysis indicates that NHPC has shown resilience in its operational capacity, though it faces challenges such as fluctuations in power generation and high debt-to-equity ratios. Analysts note that while its revenue has seen growth, its net profit has experienced some volatility due to operational hurdles.<\/span><\/p>\n

5.\u00a0\u00a0\u00a0 <\/span><\/span><\/span>DATA ANALYSIS<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Regression Equation: – <\/span><\/p>\n

y = 1.4654x+ 0.4719<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>where: –<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>y = Weekly Return of NHPC<\/span><\/p>\n

\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>x = Weekly returns of the NIFTY 50 index.<\/span><\/p>\n

The equation suggests a positive linear relationship: as the market returns increase, the stock’s returns are also expected to increase, but at a slightly slower pace than the market itself.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Number of Observations = 48<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>t-stat for \u03b2 = <\/span>5.089304454<\/span><\/p>\n

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

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>p-value = 6.51 \u00d7 10\u207b\u2076 <\/span>\u00e8<\/span><\/span>This indicates that since p-value < 0.05, \u03b2 is statistically significant at 1% level.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>R2<\/sup> = 0.360231605754144 <\/span>\u00e8<\/span><\/span> This indicates that approximately 36.02% of the variance in NHPC’s weekly returns is explained by the NIFTY’s movements. The remaining 63.98% is due to other factors not included in this model.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>F = 6.51009099517 <\/span>\u00e8<\/span><\/span> The overall model is statistically significant.<\/span><\/p>\n

6.\u00a0\u00a0\u00a0 <\/span><\/span><\/span>CONCLUSION<\/span><\/p>\n

The analysis reveals that NHPC is a high-beta stock ($beta = 1.4654$)17. It tends to amplify market movements, making it suitable for aggressive investors seeking higher returns during bullish market phases, though it carries higher risk during market downturns18. The positive alpha of 0.4719 suggests a slight baseline weekly return independent of market fluctuations during the period studied.<\/span><\/p>\n

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

7.\u00a0\u00a0\u00a0 <\/span><\/span><\/span>REFERENCES<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>NHPC Limited. (2025). Annual Report 2024-25. Retrieved from the official website: <\/span>https:\/\/www.nhpcindia.com<\/span><\/a>.<\/span><\/p>\n

\u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Moneycontrol. (2025). NHPC Stock Analysis and Shareholding Pattern. Retrieved from: <\/span>https:\/\/www.moneycontrol.com\/india\/stockpricequote\/power-generation-distribution\/nhpc\/NHE<\/span><\/a>.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

1.\u00a0\u00a0\u00a0 INTRODUCTION \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 NHPC Limited is an Indian\u00a0public sector\u00a0hydropower\u00a0company that was incorporated in 1975 to plan, promote and organise an integrated and efficient development of\u00a0hydroelectric\u00a0power. \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 The company has expanded its capabilities to include other sources of energy like\u00a0solar,\u00a0geothermal,\u00a0tidal, and\u00a0wind. \u00b7\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 NHPC operates as a central public sector undertaking (PSU) and is a key player… Continue reading Relationship of Nifty with NHPC Limited<\/span><\/a><\/p>\n","protected":false},"author":139954,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23160","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\/23160","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\/139954"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23160"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23160\/revisions"}],"predecessor-version":[{"id":23161,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23160\/revisions\/23161"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23160"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23160"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23160"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}