TITLE: RELATIONSHIP OF NIFTY 50 WITH Sanofi India Limited
AUTHOR: Sai Bokka
INTRODUCTION:
Sanofi India Limited is a subsidiary of Sanofi, a global pharmaceutical company headquartered in Paris, France. Sanofi is a leading player in the healthcare industry, with a focus on pharmaceuticals, vaccines, and healthcare solutions. Sanofi India operates in the Indian pharmaceutical market and is involved in the manufacturing, marketing, and distribution of a wide range of pharmaceutical products.
OBJECTIVE:
To Calculate Beta of Sanofi India Limited and its significance.
VIEWS AND REVIEWS:
One of the best companies i worked for. Opportunity to do interesting work. Good benefits and work life balance.
Work Details
Work policy: 2 days/week from office
Work days: Monday to Friday (Flexible Timings)
DATA COLLECTION:
Weekly returns are calculated.
Nifty: Independent Equity: Dependent
- Data Analysis:
- The equation for the data is:
- Sanofi India Limited= ( -0.9706) + (-0.0472) = (-1.0178)
- Where, x(nifty)= (-0.0472) and y(equity) = ( -0.9706)
N=48, R Square= 0.000463609, F value= 0.021335887
- The above equation shows the relationship between Nifty 50 and equity of Sanofi India Limited. Where, Equity of Sanofi India Limited is a dependent variable and Nifty50 is an independent variable.
- The negative sign in the equation means that there is an inverse relationship between Nifty 50 and Equity of Sanofi India Limited. i.e. If the return of Nifty50 increases then the return of Sanofi India Limited will decrease and vice-versa.
- The number of observations is 48.
- R-Square= 000463609.
Which means 9% of Sanofi India Limited is explained by Nifty 50. 91% are errors due to factors which are not in order.
- Figures in brackets is the t-stats for b and the p value of it is 0.03842. It is less than 0.5 which means Nifty 50 is statistically significant at 5% level. F is 021335887 and the P value is 0.884505874.
which is also greater than 0.05 which means that overall, the model is statistically significant at 5% level.
Conclusion: The beta is less than 1, therefore, we should invest for long term purpose.
