Relationship between Nifty 50 and Sun pharmaceutical Industries Ltd
AUTHOR: SAHIL SURADKAR
INTRODUCTION :
Sun Pharmaceutical Industries Ltd is India’s largest pharmaceutical company, producing a wide range of generic and specialty medicines across therapeutic areas like dermatology, ophthalmology, and chronic diseases.The company operates in over 100 countries with a strong network of manufacturing facilities, research centers, and distribution channels, ensuring efficient delivery to domestic and global markets.Sun Pharma focuses on innovation in specialty drugs while maintaining a strong generic portfolio, balancing growth with social responsibility.As a listed company, its financial and stock performance can be compared with the Nifty 50 to evaluate how it performs relative to India’s top 50 companies.This comparison helps assess Sun Pharma’s market position, growth trajectory, and resilience against broader market trends.
OBJECTIVE: To calculate Beta and observe its significance.
LITERATURE REVIEW:
(V. Kumar et al., 2016), Scholarly studies further highlight Sun Pharma’s role in the Indian pharmaceutical industry, noting its significant contributions to profitability, innovation, and socio-economic development.
(Sun Pharma Sustainability Report, 2024), Sun Pharmaceutical Industries Ltd is India’s largest pharmaceutical company, with a strong presence in over 100 countries. The company offers a wide range of generic and specialty medicines, serving therapeutic areas such as dermatology, ophthalmology, and chronic disease treatments, supported by an extensive manufacturing and distribution network.
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DATA COLLECTION :
Data for Nifty 50 and Sun Pharmaceutical Industries Ltd was downloaded by nseindia.com for the period 1/1/2025 to 31/12/2025. Friday closing price for Nifty 50 and Sun Pharmaceutical Industries Ltd were calculated. Weekly returns of Nifty 50 were taken as x and Weekly return of Sun Pharmaceutical Industries Ltd were taken as y. y was regressed on x.
Data Analysis:
y= -0.31+1.08x
|
N |
48 |
|
R square |
0.42 |
|
F |
33.61 |
|
P- value |
5.82431566519672E-07 |
|
t Stat |
5.8 |
|
B |
1.08 |
The above Equation shows the relationship between Nifty 50 and Sun Pharmaceutical Industries Ltd. Positive means their Direct relation which means if Nifty 50 stock rises Sun Pharmaceutical Industries Ltd stock rise and vice versa. If Nifty 50 stock increases by 1 unit, the Sun Pharmaceutical Industries Ltd stock increases by 1.08 unit. Number of observations is 48. t-stat for beta 5.80. The P value 5.82431566519672E-07 is less than 0.05 meaning Beta is statistically significant at 5% level. No. of observations are 48. R square is 0.42 meaning 42% of Sun Pharmaceutical Industries Ltd Returns is explained by Nifty 50 Returns 58% the error due to the variable not included in model. F is 33.61 and P value of which 5.82431566519672E-07 less than 0.05 meaning Beta is statistically significant at 5% level.
Conclusion:
B>1, Hence invest for short term if Nifty 50 rise.
REFERENCE:
1. V. Srinivasa Kumar, R. Renganathan, C. Vijaya Banu & V. Vijaya Anand. (2016). Financial performance analysis of Sun Pharma compared with industry averages. Research Journal of Pharmaceutical, Biological and Chemical Sciences. Retrieved from https://www.rjpbcs.com/pdf/2016_7%281%29/%5B166%5D.pdf
2. Sun Pharma Sustainability Report. (2024). ESG and operational performance overview. Retrieved from https://sunpharma.com/responsibility/sustainability/