Title: – Relationship of Abbott India Limited shares with Nifty 50
Author: – Aalisha Bapu Mankar (MMS First Year, Roll no. 0222037)
Kohinoor Business School, Kurla.
Introduction: – One of India’s fastest-growing pharmaceutical companies, Abbott India Limited is part of Abbott’s global pharmaceutical business in India. Since 1910, Abbott has been dedicated to helping people in India live healthier lives through a diverse range of science-based nutritional products, diagnostic tools, branded generic pharmaceuticals, and diabetes and vascular devices. Headquartered in Mumbai, Abbott India Limited, a publicly listed company and a subsidiary of Abbott Laboratories, takes pride in offering high-quality trusted medicines in multiple therapeutic categories such as women’s health, gastroenterology, cardiology, metabolic disorders and primary care.
Objective: – To Calculate the Beta of Abbott India Limited and find out its significance.
Views and Reviews: –
Ms. Anisha Motwani, Independent Director of Abbott India Limited is a Brand and Innovation expert with over 28 years’ experience in Marketing across diverse industries. In her last executive role, she was the Chief Marketing & Digital Officer of Max Life Insurance. She is the Founder and Partner at ‘Storm the Norm’ an innovation company. She is also the author of Storm the Norm – first-of-its-kind collection of contemporary stories of truly inspiring businesses and brands from India that either wrote or rewrote the norms of their respective industries and brought in unprecedented change and vibrancy. She is also an Advisor to World Bank and the Max Group. She was voted as one of the 50 Most Powerful Women in Indian Business by Business Today for three consecutive years since 2009.
Mr. Vivek V Kamath, Managing Director at Abbott India Limited has over 30 years of rich and diversified experience in healthcare, including pharmaceuticals, OTC and diagnostics. He has held several senior leadership positions in various reputed pharmaceutical companies, Indian as well as MNCs, across different geographies and holds strong functional expertise in the areas of strategy, marketing, sales & general management. Prior to joining the Company, Mr. Kamath worked as the General Manager of the Specialty Care business of Abbott Healthcare Private Limited. Prior to Abbott, he has worked with MSD Pharmaceuticals; Roche Diagnostics, India; Novartis, Singapore; Ranbaxy; Pfizer, India; Fulford, India; Wockhardt and Johnson & Johnson. Vivek holds strong business acumen and has been instrumental in building high performance teams, leading organizational change and driving faster than market growth in sales, profit and productivity across the various companies he has worked.
Data Collections: – Data is taken from 01-06-2022 to 31-07-2023. It has been downloaded from the NSE site, then Friday’s closing price was sorted and weekly returns of Nifty (i.e., X) and Abbott India Limited (i.e., Y) were calculated.
Data Analysis: – Equation “Y=0.446991-0.00503(X)”
(tstat = 0.019266)
n = 50, R2 = 7.7326, F = 0.000371172
The above equation shows the relationship between the closing price of Nifty 50 (x) and the closing price of Jubilant Foodworks (y) the negative sign means a negative relationship meaning if “x” rises “y” falls and vice versa. If “x” rises by 1 unit, “y” falls by 0.005053, “n” means there are 50 observations, and figures in brackets are tstat for “b”, so “b” is not as Calculated tstat for b i.e., 0.019266 is lesser than tabulated t(t0.5,49DF=1.677) so reject H0 and accept H1. R2 is 7.7326 means 92.27% of y is explained by x. As the calculated value of F =0.000371172 is less than the tabulated F (F 0.05,1DF,49DF) = 4.038, the overall model is not statistically significant at the 5% level.
So overall the model is statistically significant at the 5% level.
Conclusion:
As Beta is 0.005053 which is less than 1 so, the Abbott India Limited is good for long term investment.
References:
https://www.nseindia.com/reports-indices-historical-index-data
https://www.nseindia.com/get-quotes/equity?symbol=ABBOTINDIA