Title: Relationship of NIFTY50 with RANBAXY LABORATORIES LIMITED

Author: Reuben Oommen Kuruvilla – 10
-Batch – SIMSR MIM 2019-22

Introduction:
Ranbaxy Laboratories Limited was an Indian pharmaceu0cal company that was incorporated in India in 1961 and remained an en0ty un0l 2014. The company went public in 1973. Ownership of Ranbaxy changed twice over the course of its history.
For the twelve months ending on 31 December 2005, the company’s global sales were US$1,178 million, with overseas markets accounting for 75% of global sales (USA: 28%, Europe: 17%, Brazil, Russia, and China: 29%).
Objective:
To calculate Beta of RANBAXY LABORATORIES LIMITED and find its significance using regression analysis with NIFTY50.
Views & Reviews:
1. “My sense is Ranbaxy laboratories is the next sun pharma” said by Prakash Diwan, Director, Altamount Capital Management.
2. Elara Securities:
“With healthy market share in generic acts and Evoxac along with scale up in Absorica, Ranbaxy’s Base business is strengthening,”
Data Collection:
Friday closing price data of Nifty50 and RANBAXY LABORATORIES LIMITED was taken from www.nseindia.com (Na0onal Stock Exchange) for the time period 1st January 2019 to
31st December 2019.
From the available data, the closing rate of all the Fridays in the year was sorted to find out weekly returns for both Nifty as well as Nestle India.
Weekly return column for NIFTY50 is considered as “X” variable and the weekly returns column for Nestle India is considered as “Y” variable.

Data Analysis:
Utilizing the Regression Add-on in Microsoft Excel Data Analytics tool below values were acquired
N (Observations) = 50
R Square = R^2 = 0.27 a = 0.33
b = 0.93 F = 17.49
T stat = 4.18
Pvalue= 0.000125171
Below expression shows the rela0onship model between Nestle India and NIFTY50 weekly returns: Nestle India Weekly Return = 0.33 + 0.93 *(NIFTY50 Weekly Return)
Conclusion:
Since P value is less than 0.05, this model is sta0s0cally good and is significant.