TITLE: Relationship of Mankind Pharma Ltd. with NIFTY 50
AUTHOR: Meghana Savratkar
INTRODUCTION: This project is about whether Mankind Pharma Ltd. is good for short term or long term investments, in relation with NIFTY 50. Mankind Pharma is an Indian pharmaceutical and healthcare products company & NIFTY 50 represents the weighted average of 50 of the largest Indian companies listed on the National Stock Exchange.
OBJECTIVE: To calculate beta and find its significance.
DATA COLLECTION: Data for NIFTY 50 and Mankind Pharma was downloaded from NSE website for the period 1-3-23 to 28-2-24. Friday closing prices were calculated and weekly returns of Mankind Pharma Ltd. were regressed on weekly returns of NIFTY 50.
DATA ANALYSIS:
Equation : Mankind pharma ltd = 1.029 + 0.28 NIFTY 50
n= 40; R2 = 0.0103; F = 0.3970; P value = 0.532; t-stats for b = (0.63)
The above equation shows the relationship between NIFTY 50 and Mankind pharma. Positive sign means direct relationship, if NIFTY 50 rises Mankind pharma will also rise and vice versa. If NIFTY 50 rises by 1 unit then mankind pharma will rise by 0.28 units and vice versa. T- stats for b is given in bracket and the p value for which is given as 0.532, which is more than 0.05 meaning b is not statistically significant at 5% level meaning NIFTY 50 does not play a significant role for Mankind pharma. Number of observations are 40, R2 is 0.0103 meaning 1.03% of mankind pharma is explained by NIFTY 50, balance 98.97% is error due to the variables not taken in the model. F is 0.3970 the p value for which is 0.532 which is more than 0.05, so overall the model is not statistically significant.
CONCLUSION: As the beta value is less than 1, thus Mankind Pharma Ltd. is good for long term investments.