Title : Relationship Between NIFTY50 and Poly Medicure
Author :Pallavi Ghare
Introduction:
Poly Medicure Limited is a leading Indian multinational company in the medical
device industry. Established in 1995, it specializes in manufacturing disposable medical devices such as IV cannulas, catheters, and blood transfusion sets. The company is known for its commitment to quality and innovation, serving healthcare professionals and
patients globally.
Objective : To calculate Beta and its significance
Literature Review :
1.The company Poly Medicure Ltd has announced its plans to establish a Special Economic Zone unit in Jaipur, with an acquired plot area of 16,789.00 square meters. The total investment for this project is estimated to be INR 33 crores, and it is expected to commence operations by Quarter 3 of the Financial Year 2013-14. This information was published by HT Syndication with permission from Right Vision News.
2. It’s impressive to see how Polymed has grown from its humble beginnings to become one of India’s leading manufacturers of medical devices. Their commitment to innovation, sustainability, and serving the medical community is evident in their diverse product portfolio and global presence. It’s also noteworthy that they have received prestigious awards and recognition for their contributions to the healthcare industry.
Data Collection : Historical data has been downloaded for both Nifty and Poly Medicure for
the period between 01/02/2023 to 31/01/2024 from www.nseindia.com and
data has been manipulated to get only Friday Closing Prices.
Data Analysis : The Standard Equation is : Y = a + b × X
Where X = Nifty Returns and
Y = Poly Medicure
Y was Regress on X
Therefore the Equation becomes,
Y = (4065.64) + (-0.147726) × X
Equity = (4065.64) + (-0.147726) Nifty
N = 247
R sqaure = 0.670764
F = 499.10
Interpretetion : The above Equation shows the relationship between NIFTY50 and Poly Medicure. NIFTY50 is independent variable and Poly Medicure is dependent
The negative sign in the Equation means that there is an inverse relationship between
NIFTY50 and Equity of Poly Medicure. i.e if the return of NIFTY50 decrease then the
return of Poly Medicure will increase and vice versa.
The number of Observations is 247
R-square = 0.670764 which means 0.0067 % of Poly Medicure is explained by NIFTY50.
Figures and Brackets are the t-stat is R-square. The t-stat value of this is522.30
F =499.10 which means the overall model is statistically significant at 5 % level.
Conclusion : 𝛽 = -0.147 which is smaller than 1 , therefore we should invest for long term.
References :
1.Poly Medicure Ltd A global medical technology company medical technology company .www.proquest.com(2023).
2.www.proquest.com