TITLE – Relationship of Cipla with Nifty
AUTHOR – Chelsee Rajoria
INDRODUCTION – Cipla Limited is an Indian multinational pharmaceutical company, headquartered in Mumbai. Cipla primarily develops medication to treat respiratory disease, cardiovascular disease, arthritis, diabetes, depression, and other medical conditions.
OBJECTIVE – To calculate beta and find its significance.
VIEWS AND REVIEWS – Cipla, a pharmaceutical company, is currently trading at a price of Rs 1224.75. The stock has experienced a slight increase of 0.65%. Over the past year, Cipla has delivered a return of 11.7% to its investors.
DATA COLLECTION – Data was downloaded from nseindia.com. Friday closing prices were taken and return of nifty and equity were found.
DATA ANALYSIS –
Regression Equation – Return of Cipla = 9868.71-8.78(Return of Nifty)
R Square = 0.3745 (5.3614)
F = 28.7453
Interpretation – The above equation shows the relationship between Nifty 50 and Cipla share. Return of Cipla is dependent variable and Return of Nifty 50 is independent variable. Positive signs means if Nifty 50 price rises, Cipla share price also rises. If Nifty 50 price rises 1 unit, Cipla share price will rise by 8.7897 unit and vice-versa. No. of observations are 49. Figure which is written in bracket 5.3614 is t test for b. The P value for which is 0.00 which means Nifty 50 is statistically significant at 1%. R square is 0.3745 which means 3.745% of variance in Cipla share price are explained by Nifty 50 in other words 96.25% is error means 96.25% is due to the variables which are not in the model. F is 28.7453. P value for this 0.00 which means overall the model is statistically significant at 1% level.
CONCLUSION – Beta is 9862.71, which is more than 1 so investment is good for short term investment.
https://www.nseindia.com/get-quotes/equity?symbol=CIPLA
https://www.nseindia.com/get-quotes/derivatives?symbol=NIFTY
