Title- Relationship between Nifty 50 and Sun Pharmaceutical Industries Ltd Equity price.

Name of Author- Shriya Gupta (021230022212)

Introduction- Sun Pharma is the No. 1 and largest pharmaceutical company in India with over 8% market share in the domestic market (AIOCD AWACS for 12 months ending June 2022). The company has been ranked No. 1 with over 11 different classes of doctors (SMSRC Prescription Data). Sun Pharma’s branded generics business in India commands leading position in high-growth chronic therapies and strong positioning in the acute segment.
Sun Pharma India specializes in technically complex products, offering a comprehensive therapy basket, and owns 33 brands out of the top 300 pharmaceutical brands in India. The top 10 brands contribute about 18% of India revenues. The top therapeutic segments which contribute significantly to the company’s revenue and market share are Neuropsychiatry (16%), Gastroenterology (13%), Anti-Infectives (10%), Diabetology (8%), and Pain/Analgesics (7%) among others. The company’s growth is driven by a basket of brands and low product concentration. With over 10,000 strong sales force reaching around 600,000 doctors, the company has one of widest reaches to India’s medical fraternity for therapy focused marketing.

Objective- To calculate the predicted value (B) and its significance

Data collection- The data used for analysis is collected from the NSE site and after that Sun Pharmaceutical Industries Ltd. Equity (y) was regressed on Nifty 50 (x).

Data Analysis-
Regression equation, B= -0.3119075692 + 0.766437205 (x)
Where (×) represents the Nifty 50.
No. of observations (N) = 50
R square=0.2841775855, F=19.45273214
t-stat for x=4.410525155
The above equation tells us about the relationship between Sun Pharmaceutical Industries Ltd. Equity (y) and Nifty 50 (x).
The positive sign means there is a direct relationship between them, which means if Nifty 50 increases, then the equity price of Sun Pharmaceutical Industries Ltd. will also increase.
If the Nifty 50 rises by 1 point, then the Equity share price will also increase by Rs 0.5330830944

T-stat for the Nifty 50 is 4.410525155 and the p-value is 0.00005639006336 which is less than 0.01 means the data is statistically significant at a 1% confidence level.
N=50, there is a total of 50 observations.
R Square=0.2841775855 means 28.41% of y is explained by x while the rest 71.59% is an error.