Title: Relationship between Sun Pharmaceutical and Nifty 50
Author: Sanskar Dixit-021330024326
Introduction: Sun Pharmaceutical Industries Ltd. is a prominent global pharmaceutical company headquartered in Mumbai, India. Known for its extensive range of branded and generic formulations, as well as active pharmaceutical ingredients (APIs), Sun Pharma caters to a diverse spectrum of chronic and acute treatments. With a strong presence in over 100 countries, including the United States and India, the company has established itself as a leader in specialty generics. Sun Pharma’s commitment to research and development, coupled with its vertically integrated network, ensures efficient production and distribution of high-quality, affordable medicines.
Objective: to find out beta of Sun pharma and its significant.
Data Collection: : Data for Nifty50 & Sun Pharmaceutical was downloaded from NSE website, further period 1st April 2023 to 31st March 2024. Data was manipulated to get Friday closing prices & weekly returns were calculated by the Formula: Weekly returns of Sun Pharmaceutical was regressed on weekly returns of Nifty50.
Data Analysis: Weekly return of & Sun Pharmaceutical=(-0.78077) +
(- 0.32163){t-stat= -1.12649}
N = 48, R2 =0.02742, F = 1.26898, P-value = 0.265927
The above equation shows the relationship between Niffty50 & Sun Pharmaceutical . The Positive sign before – 0.32163 means if Nifty raises also Sun Pharmaceutical Also Rises & vice versa. The Coefficient of Nifty50 has t stat = (-1.12649) & the P value of which is 0.265927 which is more than 0.05 meaning nifty 50 is not Statistically Significant to Increase the Prices of Sun Pharmaceutical. To increase the prices of Sun Pharmaceutical , R2=0.02742 is meaning of 0.2742% of Sun Pharmaceutical prices explained by Nifty50. 99.9% dependents upon other factors like fundamentals are other factors. F =1.26898 is & the P value of this is 0.265927 meaning it is more than 0.05 meaning the overall all model is not statistically significant.
Conclusion: As per the given data of Relationship between Sun Pharmaceutical and Nifty 50 we know that beta value is less than 1 and negative, the company is not good for investment .