{"id":21191,"date":"2024-10-08T10:10:21","date_gmt":"2024-10-08T04:40:21","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=21191"},"modified":"2024-10-08T10:10:34","modified_gmt":"2024-10-08T04:40:34","slug":"relationship-of-sun-pharmaceutical-industries-ltd-with-nifty-50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=21191","title":{"rendered":"Relationship of Sun Pharmaceutical Industries Ltd. with Nifty 50"},"content":{"rendered":"

Relation analysis of Sun Pharmaceutical <\/span>Industries<\/span> Ltd. <\/span>w<\/span>ith N<\/span>ifty 50<\/span><\/span>.<\/span><\/span>\u00a0<\/span><\/strong><\/em><\/p>\n

Author: Saksham Goswami<\/p>\n

F4 – 021330124027 ITM Business School Navi Mumbai<\/p>\n

Introduction<\/span><\/i><\/b>:<\/span><\/i><\/b>\u00a0<\/span><\/p>\n

Sun Pharma is the largest pharmaceutical company in India, commanding over 8% of the domestic<\/span>\u00a0<\/span><\/p>\n

market share. It is also recognized as the fourth largest specialty generic pharmaceutical company globally, with global revenues amounting to approximately $5.4 billion.<\/span>\u00a0<\/span><\/p>\n

Objective:<\/span><\/i><\/b>\u00a0<\/span><\/p>\n

To find out \u03b2 (beta) of Sun Pharmaceutical Industries Ltd. And its significance with respect to Nifty 50.<\/span>\u00a0<\/span><\/p>\n

Data Collection:<\/span><\/i><\/b>\u00a0<\/span><\/p>\n

The data was collected of Nifty 50 and Sun Pharmaceutical Industries Ltd. From official site from official site of NSE for the period between 1\/06\/23 and 31\/05\/2024 which included historical market equity returns and the closing prices then the data was manipulated to get closing prices precisely on Fridays and then market returns were calculated by the formula (Y <\/span>t-1 \u2013 <\/span>Y<\/span>t<\/span>) \/ Y<\/span>t <\/span>* 100 and then Y was regressed on X.<\/span>\u00a0<\/span><\/p>\n

Data Analysis:<\/span><\/i><\/b>\u00a0<\/span><\/p>\n

Weekly returns of Nifty 50 quoted as \u03b2 (beta) = 0.632267798<\/span>\u00a0<\/span><\/p>\n

Weekly returns of Sun Pharmaceutical Industries Ltd. = 0.675841418<\/span>\u00a0<\/span><\/p>\n

T stat = 2.303669<\/span>\u00a0<\/span><\/p>\n

N = 45<\/span>\u00a0<\/span><\/p>\n

R<\/span>2 <\/span>= 0.10985784<\/span>\u00a0<\/span><\/p>\n

F = 5.306890659<\/span>\u00a0<\/span><\/p>\n

P value = 0.0261389263<\/span>\u00a0<\/span><\/p>\n

Y = Weekly returns of Sun Pharmaceutical Industries Ltd. + Weekly returns of Nifty 50\u00a0<\/span>\u00a0<\/span><\/p>\n

\u00a0Y\u00a0\u00a0 = 0.63 + 0.67x<\/span>\u00a0<\/span><\/p>\n

Interpretation:<\/span><\/i><\/b>\u00a0<\/span><\/p>\n

The above equation shows the relationship between weekly returns of Nifty 50 and weekly returns of Sun Pharmaceutical Industries Ltd. The positive sign before the coefficient of \u03b2 means the positive relation between Nifty 50 and Sun Pharmaceutical Industries Ltd. I.e. if Nifty rises by 1 unit, then Sun Pharmaceutical will rise by 0.67.<\/span>\u00a0<\/span><\/p>\n

\u00a0Also, P value is 0.026 which is lower than 0.5 so T-stat is statistically significant at 5% level.<\/span>\u00a0<\/span><\/p>\n

R<\/span>2<\/span> is 0.10985784 which means 10.9% of weekly returns of Sun Pharmaceutical Industries Ltd. Are explained by Nifty.<\/span>\u00a0<\/span><\/p>\n

Rest 89.1% is standard error i.e. affected by other factors such as PESTEL\u00a0and operations of the company.<\/span>\u00a0<\/span><\/p>\n

Conclusion:<\/span><\/i><\/b>\u00a0<\/span><\/p>\n

If \u03b2 is more than 1 it is good for short term investment.<\/span>\u00a0<\/span><\/p>\n

If \u03b2 is less than 1 but more than 0 as in the case of Sun Pharma and Nifty it is good for long term investment and it is advised to hold the security.<\/span>\u00a0<\/span><\/p>\n

If \u03b2 is less than 0 then the stock should be avoided.<\/span>\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Relation analysis of Sun Pharmaceutical Industries Ltd. with Nifty 50.\u00a0 Author: Saksham Goswami F4 – 021330124027 ITM Business School Navi Mumbai Introduction:\u00a0 Sun Pharma is the largest pharmaceutical company in India, commanding over 8% of the domestic\u00a0 market share. It is also recognized as the fourth largest specialty generic pharmaceutical company globally, with global revenues… Continue reading Relationship of Sun Pharmaceutical Industries Ltd. with Nifty 50<\/span><\/a><\/p>\n","protected":false},"author":139427,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[46],"tags":[844],"class_list":["post-21191","post","type-post","status-publish","format-standard","hentry","category-investing","tag-mba-finance","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21191","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/users\/139427"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21191"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21191\/revisions"}],"predecessor-version":[{"id":21192,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/21191\/revisions\/21192"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21191"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21191"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21191"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}