`Title: Relationship of Sun Pharmaceutical Industries Ltd.
Author: Siddhi Surendra Kerkar
Introduction:
Sun Pharmaceutical Industries Ltd. (Sun Pharma) is the fourth largest specialty generic pharmaceutical company in the world with global revenues of over US$ 5.1 billion. Supported by more than 40 manufacturing facilities, we provide high-quality, affordable medicines, trusted by healthcare professionals and patients, to more than 100 countries across the globe.
Objective: Calculation of Beta of Sun Pharmaceutical Industries Ltd. and significance
Literature Review:
1.Short-Term Impact of COVID-19 on Indian Stock Market
India, one of the major emerging markets, has witnessed a massive fall of around 40% in its major stock indices’ value. Therefore, we examined the short-term impact of the pandemic on the Indian stock market’s major index (NIFTY50) and its constituent sectors. (Verma et al 2021)
2.Analysing time-frequency relationship between COVID-19 and FII trading activities using wavelet coherence analysis
The fear of a lockdown situation during the pandemic raised concerns among the market participants and the investors that resulted in a steep fall of 27% in NIFTY50 during 10-23 March 2020. The infusion and withdrawal of portfolio investments have added research dimension as to whether the trading behaviour is due to pandemic and subsequent government actions or has resulted from the other markets like the oil crisis. (Gupta et al,2021)
Data Collection:
Data was collected from NSE site of Sun Pharmaceutical Industries Ltd. then data was manipulated from Friday closing price. From Friday closing price we found out that nifty50 weekly returns were considered has X and Sun Pharmaceutical Industries Ltd. weekly returns were considered has Y.
Data Analysis:
Sun pharmaceutical industries ltd Returns=-0.089184191-0.037862622x
(0.1959)
N=50, R2=0.00079, F=0.038 , sign=0.05
The above equation shows the relations between Y and X
Relationship which means X rises and Y falls and vice versa. In this equation b=-0.0384, If X rises 1 unit of Y falls 0.0384 units
(t stat) for b is less than the table value b is not statistically significant at 5% level R2=0.00079 which means 0.079% of y is explained similarly F=0.038 which is also less than table value, so overall model isn’t statistically significant
Conclusion:
Beta is less than 1 so it is good for long term Investment.
References:
Pankaj Kumar Gupta & Prabhat Mittal & Amrita Kaur, 2021. “Analysing time-frequency relationship between COVID-19 and FII trading activities using wavelet coherence analysis,” Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 25(3/4), pages 383-399.
Yashraj Varma & Renuka Venkataramani & Parthajit Kayal & Moinak Maiti, 2021. “Short-Term Impact of COVID-19 on Indian Stock Market,” JRFM, MDPI, vol. 14(11), pages 1-15, November.