Title: Relationship of Sun Pharmaceuticals with Nifty

Author: Siya Sunilkumar

Introduction: Sun Pharmaceuticals is the world’s fourth largest speciality generic pharmaceutical company and No. 1 in India. We provide high-quality, affordable medicines trusted by customers and patients in over 100 countries. Sun Pharma’s global presence is supported by more than 40 manufacturing facilities spread across 5 continents, R&D centres across the globe and a multi-cultural workforce comprising over 50 nationalities. Sun Pharma fosters excellence through innovation supported by strong R&D capabilities comprising around 2,000 scientists and R&D investments of over 7-8% of annual revenues. It was founded by Dilip Sanghvi in 1983 in Vapi, Gujarat.

To calculate the Beta value of Sun Pharmaceuticals Limited and see its significance.


Data was taken from nifty. Friday closing price was calculated.

Data Analysis:-

Estimated Y = 0.579710 + 0.595334 X
N=47, R Square= 0.122555, F= 6.145600
T stat(beta) = 2.479034
T stat (0.05,45) = 2.0141
The above regression equation tells us the relationship between X and Y. Where X is NIFTY’s weekly returns and Y is Sun Pharma’s weekly returns.
The positive sign of Beta tells us that there is a positive relationship between NIFTY and Sun Pharma’s weekly returns.
From the equation, it can be seen that if X rises by 1 unit, Y will rise by 0.595334 units.
T calculated is more than T tabulated which means, β is statistically significant at a 5% confidence level.
R^2 is 0.122558 which means 12% of Y (Sun Pharma) is explained by X. And the balance is explained by error.
F is 6.145597 which is more than the table value which means the model is statistically significant at a 5% level.

β is statistically significant in the case of NIFTY and Sun Pharma. It is a good model.