Title: Relation of Cipla Limited with Nifty 50.
Author: Chaitanya Deepak Joshi
Introduction:
Indian pharmaceutical giant Cipla, driven by its “Caring for Life” mission, provides over 1,500 medicines across 80+ countries, making them a leader in affordable healthcare. From battling HIV/AIDS with pioneering anti-retroviral therapy to developing medications for diverse conditions, Cipla strives to improve lives across the globe.
Objective: Calculation of Beta and its Significance.
Views and Reviews:
“A Doctor working in Mumbai witness firsthand the impact of Cipla’s affordable medicines on countless lives. They are a lifeline for many who wouldn’t have access to essential medication otherwise. Their HIV/AIDS treatment program stands out for its groundbreaking affordability and effectiveness. Their vast product range across various diseases is also helpful for treating my diverse patient population.
However, she heard anecdotal concerns from colleagues about some quality control issues with certain generic drugs. Additionally, while their contribution to public health is undeniable, She have encountered some patients who felt neglected after switching from expensive branded drugs to Cipla generics. They missed the personal touch and information provided by some pharmaceutical companies.
Overall, she view Cipla with a mix of admiration and cautious optimism. Their commitment to affordability and accessibility is commendable, but they could strengthen patient support and quality control. As a healthcare professional, She hope they continue to innovate and improve accessibility while ensuring consistent high-quality products for all.”
By
Dr. Maya Singh, a general practitioner in Mumbai
Data Collection:
Data is carried from the NSE India site.
Friday closing prices of Nifty50 are followed.
The weekly returns of Cipla Limited are followed.
Their are weekly closing returns of Nifty50 and the weekly closing returns of Cipla Limited
Data collection is done from 1st October 2022 to 30th September 2023.
Weekly returns of Ni
Linear Regression was carried out.
Data Analysis:
Regression Statistics:
Multiple R: 0.995152406 – This is the correlation coefficient, which indicates a very strong positive relationship between the independent and dependent variables in the model.
R Square: 0.990328312 – This is the coefficient of determination, which tells us that 99.03% of the variance in the dependent variable is explained by the independent variables in the model. This is a very high R-squared value, suggesting that the model fits the data very well.
Adjusted R Square: 0.990126818 – This is a slightly adjusted version of R-squared that takes into account the number of independent variables in the model. It is also very high in this case, suggesting that the model is not overfitting the data.
Standard Error: 1.411198096 – This is the standard deviation of the residuals, which is a measure of how much the actual data points deviate from the fitted regression line. A low standard error indicates that the model is a good fit for the data.
ANOVA Table:
The ANOVA table shows the results of the F-test, which is used to test the null hypothesis that all of the regression coefficients are equal to zero. In this case, the F-statistic is very large (4914.939098) and the p-value is very small (5.16581E-50), which means that we can reject the null hypothesis and conclude that at least one of the regression coefficients is statistically significant.
Coefficients Table:
The coefficients table shows the estimated values of the regression coefficients, along with their standard errors, t-statistics, and p-values. The intercept in this case is 0.086896747 and the coefficient for the return of Nifty 50 is 0.998418824. Both of these coefficients are statistically significant (p-values < 0.05), which means that they are likely not due to chance.
Overall, the it suggests that the regression model is a very good fit for the data. The independent variables explain a large amount of the variance in the dependent variable, and the coefficients are all statistically significant.
Conclusions:
Beta is 0
Since Beta is 0 which is less than 1, it is advisable to invest for a long time as it is less volatile.
Reference:
https://www.nseindia.com/get-quotes/equity?symbol=CIPLA