Title– Relationship between Nifty 50 with Sun Pharmaceutical Industries Limited
Author- Sonali Dubey (21230023907) (Financial markets)
Introduction –
Sun Pharmaceutical Industries Limited is an Indian multinational pharmaceutical company headquartered in Mumbai, Maharashtra, India. It was founded by Dilip Shanghvi in 1983 with just five products to treat psychiatry ailments. Over the years, it has grown significantly through a combination of strategic acquisitions, partnerships, and organic growth. Sun Pharma’s product portfolio spans various therapeutic areas including cardiology, psychiatry, neurology, gastroenterology, oncology, dermatology, and ophthalmology, among others. It is one of the largest pharmaceutical companies in India and the world. Sun Pharma manufactures and sells pharmaceutical formulations and active pharmaceutical ingredients (APIs) primarily in India and the United States, as well as in other markets globally.
Objective –
To calculate the beta of Sun Pharmaceutical Industries Limited and its significance.
Views & Reviews-
We continue to grow faster than the industry,’ says Sun Pharma boss Dilip Shanghvi
At Sun, we remain committed to creating long term value for our shareholders. In line with this philosophy, we will continue to focus on performance and producing consistent returns.
Dilip Shanghvi aspires to increase Sun Pharma’s research and development spend to a billion dollars in the next three to five years.
Data Collection –
The data is downloaded from the 1st of February 2023 to the 31st of January 2024 for Nifty 50 and Sun Pharmaceutical Industries Limited.
Nifty 50 is the independent variable.
Sun Pharmaceutical Industries Limited is the dependent variable.
ANOVA TABLE –
Data Analysis –
The equation for the data is –
X- Nifty 50; Y Sun Pharmaceutical Industries Limited.
Y=-0.27432166+0.638967215X
N= 48, R Square= 0.191487645, F value= 10.894616027
The above equation shows the relationship between Nifty 50 return and Sun Pharmaceutical Industries Limited stock return. Where Nifty 50 is the independent variable and Sun Pharmaceutical Industries Limited is the dependent variable. The positive sign in the equation shows that there is a direct relationship. If, the return of Nifty 50 increases then the return of Sun Pharmaceutical Industries Limited will also increase and vice versa.
The number of observations is 48.
R-square is 0.191487645which means 19.14% of Sun Pharmaceutical Industries Limited is explained by nifty 50 is 80.86% are errors that are not in the model.
Figures and brackets are the T stats is R-square. The P-value of this is 0.001869027, it is less than 0.5 which means nifty 50 is statistically significant at the 5 % level.
F is 10.894616027 and the P-value is 0.001869027 which is also less than 0.5 which means the overall model is statistically significant.
Conclusion –
The beta is more than 0.975 for the given model which means that we should invest for the long-term period.
Reference:
- (www.sunpharmaceutical.com)