Title: – Relationship of Alembic Pharmaceuticals with Nifty 50
Author: – Atman Ketan Dani (MMS First Year, Roll no. 0222073)
Kohinoor Business School, Kurla.
Introduction:
Alembic Pharmaceuticals Ltd. is an Indian multinational pharmaceutical company headquartered in Vadodara. It is involved in manufacture of pharmaceutical products, pharmaceutical substances and intermediates. It is also termed to be a market leader in macrolides segment of anti-infective drugs in India.
Objective : To calculate Beta of Alembic Pharmaceuticals & its significance
Data Collection:
We collected weekly closing prices from Nifty.com from 01-07-2022 to 30-06-2023. Then, we calculated the weekly returns for both Nifty 50 (X) and Alembic Pharmaceuticals’ equity (Y) using the Friday closing prices. This helped us understand how both Nifty 50 and Alembic Pharmaceuticals performed each week during this time.
Data analysis:
We can write the equation in the form of Y = a + bx
= 0.193 + 36.13x
(1.440)
N=50
R2 = 0.0414
F = 2.074
Interpretation : The above Equation shows the relationship between the Nifty 50 (X) with Alembic pharmaceuticals (Y). The positive sign means the positive relation meaning that if nifty stock rises then Alembic Pharmaceuticals stock also rises and vice versa. If nifty 50 rises by 1 unit Alembic Pharmaceuticals rises by 36.13 units. N means there are 50 observation. T is 1.440, is less than tabulated T (t..05,48 2.0106). T stat for b is statistically not significant. R2 is 0.0414 which means 4.14% of Y is explained by X. F is 2.074 which is less than the table value ( F.05, 1,48 4.0420). So, overall the model is not statistically significant @5% level of significance.
Conclusion
- b is greater than 1 so Alembic Pharmaceuticals share is good for short term.