Title –   Relationship between Nifty 50 with Abbott India Limited

 

Author –   Anuj Agrawal (21230023629) (Financial Market)

Introduction –  

Abbott India Limited is a publicly listed company and a subsidiary of Abbott Laboratories, headquartered in Mumbai.  One of India’s fastest-growing pharmaceutical companies, Abbott India Limited is part of Abbott’s global pharmaceutical business in India and takes pride in offering high-quality trusted medicines in multiple therapeutic categories such as women’s health, gastroenterology, cardiology, metabolic disorders, and primary care.

Objective –

To calculate the beta of Abbott India Limited and its significance.

Views & Reviews –

 

1. At Abbott, our purpose is to help people live fuller lives through better health. For over 79 years, we have remained committed to providing quality healthcare in India. Our response to the evolving changes in the environment truly reflects our commitment to building a sustainable future. On behalf of the Board Members, I thank all our partners, especially healthcare professionals, pharmacists, vendors, stockiest, retailers, and bankers, for their continued faith and relentless support. I would also like to thank all our employees for their commitment, dedication, and hard work. I am grateful to all our shareholders for their unwavering trust in us, and to the esteemed Board of Directors for their invaluable guidance.

Sincerely,

Munir Shaikh

Chairman

 

2. Working and winning together has been fundamental to our collective success, and in the next fiscal year, we reaffirm our dedication to delivering outstanding value to our shareholders and customers. We will continue to work side-by-side with the people and communities we serve, partners, government, and other stakeholders to address health disparities, expand access and remove barriers that prevent people from living healthy lives wherever they are. With your support, we will remain steadfast in our transformational journey toward a brighter and more successful future. Once again, I express gratitude to our partners, customers, and shareholders for the trust they have placed in us.

 Sincerely,

 Vivek V Kamath

Managing Director

 

 

 

 

Data Collection –

The data has been downloaded from 1^stFebruary 2023 to 31^st January 2024 of Nifty 50 and Abbott India Limited.

Nifty 50 is the independent variable.

Abbott India Limited is the dependent variable.

 

ANOVA TABLE –

SUMMARY OUTPUT
Regression Statistics
Multiple R	0.084706
R Square	0.007175
Adjusted R Square	-0.01441
Standard Error	2.537243
Observations	48
ANOVA
	df	SS	MS	F	Significance F
Regression	1	2.140104	2.140104	0.332438	0.567038
Residual	46	296.1298	6.437603
Total	47	298.2699
	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%	Lower 95.0%	Upper 95.0%
Intercept	0.417347	0.3814	1.094253	0.279541	-0.35037	1.185065	-0.35037	1.185065
X Variable 1	0.149942	0.260057	0.576574	0.567038	-0.37353	0.673409	-0.37353	0.673409

 

Data Analysis –

The equation for the data is –

X = Nifty 50 and    Y = Abbott India Limited.

Y = a + b X

Y = 0.417 + 0.149X

N= 48, R Square= 0.007175, F value= 0.332438

The above equation shows the relationship between Nifty 50 return and Abbott India Limited stock return. Where Nifty 50 is the independent variable and Abbott India 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 Abbott India Limited will also increase and vice versa.

The number of observations is 48.

R-square is .007175 which means .7% of Abbott India Limited is explained by Nifty 50.

99.3% are errors that are not in the model.

Figures and brackets are the T stats is R-square. The P-value of this is 0.567038, it is more than 0.5 which means nifty 50 is statistically not significant at the 5 % level.

F is 0.332438 and the P-value is 0.567038 which is more than 0.05 which means the overall model is statistically not significant at 5%.

Conclusion –

The beta is less than 1 for the given model which means that we should invest for the long term.

 

Reference –

1. https://www.nseindia.com/

 

2. https://www.abbott.co.in/

 

3. https://www.moneycontrol.com/