Relationship of NIFTY 50 with Power grid corporation of India (PGCIL)<\/b><\/p>\n
Author:<\/b>\u00a0Pratyush Prakhar Srivastav<\/p>\n
Introduction<\/b><\/p>\n
This research examines the relationship between the market index NIFTY 50 and the stock returns of Power grid corporation of India (PGCIL), focusing on the extent to which market movements influence the company\u2019s equity performance. The study applies a regression-based approach to estimate the sensitivity of Power grid corporation of India (PGCIL) returns to changes in the NIFTY 50 index. By analysing weekly return data, the research aims to understand whether Power grid corporation of India (PGCIL) exhibits significant market dependence or whether its returns are driven largely by firm-specific factors. The findings help in assessing the stock\u2019s systematic risk and its alignment with overall market movements.<\/p>\n
Objective<\/b><\/p>\n
The main objective of the study is: Literature Review<\/b><\/p>\n View 1: Profitability Analysis of Power Grid Corporation of India Ltd. (2016).<\/b><\/p>\n The study on the profitability of Power Grid Corporation of India Ltd. examines long-term financial performance using ratio and DuPont analysis over a twelve-year period. The research highlights how profitability ratios such as operating profit, net profit, and return on assets have performed both before and after the 2007\u201308 recession, indicating the firm\u2019s ability to sustain earnings despite economic challenges. It also discusses cost structure and efficiency measures, showing that total expenses ratios decreased over time while core profitability remained relatively stable. The findings underscore the importance of financial management practices and profitability metrics in evaluating firm performance, while also suggesting that broader economic factors such as recessions can influence financial outcomes.<\/p>\n View 2: Equity Valuation of Public Sector Enterprises: Power Grid Corporation of India Ltd & ONGC Ltd. (2016).<\/b><\/p>\n The study on equity valuation of Power Grid Corporation of India and ONGC applies a discounted cash flow (DCF) approach to estimate the intrinsic value of the firms compared with their market prices. It involves forecasting free cash flows, estimating cost of capital, and deriving terminal values to evaluate long-term equity worth. The research emphasizes the forward-looking nature of DCF and how assumptions regarding growth, capital expenditure, and working capital affect valuation outcomes. By contrasting the computed intrinsic value with current market valuations, the paper sheds light on valuation techniques and their implications for investors assessing public sector enterprises.<\/p>\n Data Collection<\/b><\/p>\n The data of Nifty 50 and the data for Power grid corporation of India (PGCIL) was downloaded from 01-12-2024 to 30-11-2025 from NSE India.com. This data is used for finding out the Friday closing prices for Nifty 50 and Power grid corporation of India (PGCIL). Weekly return was calculated by the formula (Yt+1-Yt)\/Yt*100 and then weekly returns of the Nifty 50 was taken as X and the equity of Power grid corporation of India (PGCIL) was taken as Y. Y was regressed on X.<\/p>\n Data Analysis<\/b><\/p>\n The estimated regression equation is: Conclusion<\/b><\/p>\n The regression results indicate a\u00a0positive and statistically significant relationship\u00a0between the stock returns of Power Grid Corporation of India Limited and the market index. The estimated beta value (\u03b2 =\u00a00.9465) suggests that PGCIL\u2019s returns move closely with market movements and exhibit market-level systematic risk. This indicates that the stock is moderately sensitive to overall market fluctuations.<\/p>\n With an R\u00b2 value of\u00a032.62%, a substantial portion of the variation in PGCIL\u2019s returns is explained by market movements, although firm-specific factors also play an important role. Overall, Power Grid Corporation of India Limited can be considered a market-aligned stock, making it suitable for investors seeking exposure to systematic market risk along with stable company fundamentals.<\/p>\n References<\/b><\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Kuldeep Chaudhary, Surbhi Gupta(2016). A study on the Profitability Analysis of Power Grid Corporation of India Ltd. International Conference on Industrial Engineering and Operations Management, Kuala Lumpur, Malaysia, March 8-10, 2016<\/p>\n –\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Anjala Kalsie, Ashima Arora (2016). Equity Valuation of Public Sector Enterprises: Power Grid Corporation of India Limited & ONGC Limited. International Journal of Commerce and Management ISSN: 0973-5976 (P); 2456-4575 (E) VOL-10, 2016.<\/p>\n \u00a0<\/p>\n","protected":false},"excerpt":{"rendered":" Relationship of NIFTY 50 with Power grid corporation of India (PGCIL) Author:\u00a0Pratyush Prakhar Srivastav Introduction This research examines the relationship between the market index NIFTY 50 and the stock returns of Power grid corporation of India (PGCIL), focusing on the extent to which market movements influence the company\u2019s equity performance. The study applies a regression-based… Continue reading Relationship of NIFTY 50 with Power grid corporation of India (PGCIL)<\/span><\/a><\/p>\n","protected":false},"author":139985,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23326","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\/23326","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\/139985"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23326"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23326\/revisions"}],"predecessor-version":[{"id":23327,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23326\/revisions\/23327"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23326"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23326"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23326"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Calculation of beta of Power grid corporation of India (PGCIL) and observe its significance<\/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\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 <\/span>PGCIL Returns=0.5610+0.9465(NIFTY Returns)<\/p>\n\n