Title: Relationship of SUN PHARMACEAUTICALS with NIFTY50.
Author: SALONI SINGH
BATCH – F3
ROLL NO- 21230023180
Intro: About Sun Pharmaceuticals
Sun Pharmaceuticals, founded in 1983 by Dilip Shanghvi, is a prominent Indian pharmaceutical company. It is globally recognized for its extensive range of pharmaceutical products, including branded and generic formulations, as well as active pharmaceutical ingredients (APIs). The company operates in diverse therapeutic areas, has a strong international presence, and emphasizes research and development to provide innovative healthcare solutions. Sun Pharma is committed to affordability, quality, and corporate social responsibility, contributing significantly to the pharmaceutical industry.
Objective: To calculate Beta and its significance.
Data collection: Nifty and Sun Pharmaceuticals closing price was collected from NSE website. Weekly return of Nifty is termed as “X” and weekly return is Sun Pharmaceuticals termed as “Y”. Besides that, a few other things written in this report are taken from other websites and its information is provided in references.
Data Analysis:
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Equation: Y=-0.299325379+-0.267584764 |
Interpretation:
The above equation shows the relation between Nifty50 and Sun Pharmaceuticals
Return of Sun Pharmaceuticals is dependent variable and return of Nifty50 is independent variable.
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Positive sign means if Nifty50 rises by 1 unit then share price of Sun Pharmaceuticals will also rise by -0.267584764 |
and vice-versa.
Number of observations are 51.
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-0.966193325 is the t-stat for Y, the p-value for which is 0.338892984 |
R square is 0.030867056 which means 1.024% of variances in Sun Pharmaceuticals are explained by Nifty.
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F is 1.496958331, p-value for this is 0.338892984 |
which means model is statistically significant at 1% level.
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Conclusion: Beta is -0.267584764 |
which is less than 1, it means that ADITYA BIRLA CAPITAL is good for long term investment.
Reference: