{"id":23208,"date":"2025-12-20T16:49:47","date_gmt":"2025-12-20T11:19:47","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23208"},"modified":"2025-12-20T16:49:47","modified_gmt":"2025-12-20T11:19:47","slug":"relationship-with-nifty-50-with-apollo-hospital-ltd","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23208","title":{"rendered":"Relationship with Nifty 50 with Apollo hospital ltd"},"content":{"rendered":"<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">Topic: Relationship of Nifty 50 with Apollo Hospital Enterprise Limited<br \/>Author: Aashi Singh<\/span><\/i><\/b><\/p>\n<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">Introduction:<br \/><\/span><\/i><\/b>Apollo Hospitals Enterprise Limited (AHEL) is an Indian multinational healthcare group headquartered in Chennai. It was founded in 1983 by Dr. Prathap C. Reddy as the first corporate healthcare provider in India. The company has since evolved into Asia&#8217;s foremost integrated healthcare services provider.<\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\"><b>Business Model<\/b>: Apollo operates a robust healthcare ecosystem that includes:\n<ul style=\"margin-top: 0cm\" type=\"circle\">\n<li class=\"MsoNormal\"><b>Hospitals<\/b>: A network of 70+ owned and managed hospitals with over 10,000 beds.<\/li>\n<li class=\"MsoNormal\"><b>Pharmacies<\/b>: Over 5,000 retail outlets, making it the largest pharmacy chain in India.<\/li>\n<li class=\"MsoNormal\"><b>Diagnostics &amp; Clinics<\/b>: Primary care clinics (Apollo Clinics), diagnostic centers, and specialized centers for diabetes, dentistry, and cradle care.<\/li>\n<li class=\"MsoNormal\"><b>Digital Health<\/b>: <i>Apollo 24|7<\/i>, an omni-channel digital platform offering tele-consultations and medicine delivery.<\/li>\n<\/ul>\n<\/li>\n<li class=\"MsoNormal\" style=\"text-align: justify\"><b>\u00a0 \u00a0 \u00a0 Significance<\/b>: As a constituent of the NIFTY 50 index, Apollo Hospitals is considered a blue-chip stock in the Indian healthcare sector, known for its pioneering role in medical tourism and clinical excellence.<\/li>\n<\/ul>\n<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">Objective:<br \/><\/span><\/i><\/b>The primary objective of this study is to analyses the systematic risk of Apollo Hospital Enterprise Ltd. relative to the broader market (Nifty 50 Index). Specifically, the study aims to:<\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\">Calculate the Beta (\u03b2) coefficient of Apollo Hospital Enterprise.<\/li>\n<li class=\"MsoNormal\">Determine the stock&#8217;s volatility compared to the market benchmark.<\/li>\n<li class=\"MsoNormal\">Assess whether the stock acts as an aggressive or defensive investment during the analysed period.<\/li>\n<\/ul>\n<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">\u00a0 \u00a0 Literature Review:<\/span><\/i><\/b><\/p>\n<p class=\"MsoNormal\"><span>\u00a0 \u00a0<\/span>Apollo Hospitals stock has shown <b>slight declines<\/b> over the past year<span>\u00a0 <\/span>whereas broader market <span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0<\/span>indices like the Sensex have gained in the comparable period.<\/p>\n<p class=\"MsoNormal\">\u00a0 This highlights <b>short-term underperformance relative to broader benchmarks<\/b>, possibly due to sector specifics or near-term earnings reactions<\/p>\n<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">\u00a0 \u00a0 Data Collection:<\/span><\/i><\/b><\/p>\n<p class=\"MsoNormal\">\u00a0 \u00a0 The data for this analysis was sourced from the provided financial dataset covering the period from December 1, 2024, to November 30, 2025.<\/p>\n<ul style=\"margin-top: 0cm\" type=\"disc\">\n<li class=\"MsoNormal\"><b>Stock:<\/b> Apollo Hospital Enterprise Ltd. (Closing Prices).<\/li>\n<li class=\"MsoNormal\"><b>Market Index:<\/b> Nifty 50 (Closing Prices).<\/li>\n<li class=\"MsoNormal\"><b>Frequency:<\/b> Weekly closing prices were used to calculate weekly returns.<\/li>\n<li class=\"MsoNormal\"><b>Observation Count:<\/b> 48 weekly data points.<\/li>\n<li class=\"MsoNormal\"><b>Variables:<\/b><\/li>\n<li class=\"MsoNormal\"><b>Independent Variable (X):<\/b> Weekly Returns of NIFTY 50 Index.<\/li>\n<li class=\"MsoNormal\"><b>Dependent Variable (Y):<\/b> Weekly Returns of APOLLOHOSP.<\/li>\n<\/ul>\n<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">\u00a0 \u00a0 \u00a0 \u00a0 Data Analysis:<\/span><\/i><\/b><\/p>\n<p class=\"MsoListParagraphCxSpFirst\" style=\"text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: Symbol\"><span>\u00b7<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/span><\/span><\/span><!--[endif]--><b>Regression Equation:<\/b><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"text-align: center\" align=\"center\"><i><span style=\"color: black;background: #BDD6EE\">Apollo Hospital (Y) = 0.1292 + 1.0219 * Nifty 50 (X)<\/span><\/i><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: Symbol\"><span>\u00b7<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/span><\/span><\/span><!--[endif]--><b><i>Other variables:<\/i><\/b><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><i>T-Stats:<\/i> 5.2599<i><\/i><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><i>No. of observations (n): <\/i>48<i><\/i><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><i>R^2:<\/i> 0.3756<i><\/i><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><i>F-Stats: <\/i>27.6661<i> <\/i><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><i>P-Value: <\/i>3.6574<br \/><!-- [if !supportLineBreakNewLine]--><br \/><!--[endif]--><i><\/i><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: Symbol\"><span>\u00b7<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/span><\/span><\/span><!--[endif]--><b>Interpretation:<i><\/i><\/b><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><span lang=\"EN-US\">The regression equation above describes the relationship between the Weekly Return of Nifty 50 (X) and the share price of Apollo Hospital Enterprise Limited (Y). A positive coefficient of X indicates a direct relationship.<\/span><span style=\"text-indent: -18pt;font-family: 'Courier New'\"><span style=\"font-size: 7pt;line-height: normal;font-family: 'Times New Roman'\">\u00a0\u00a0<\/span><\/span><span lang=\"EN-US\" style=\"text-indent: -18pt\">If the weekly price of Nifty 50 rises by 1%, the weekly price of Apollo Hospital Enterprise will rise by 1.02% and vice versa.<\/span><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-align: justify;text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: 'Courier New'\"><span>o<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><\/span><!--[endif]--><span lang=\"EN-US\">The t-stat for Beta (coefficient of Weekly Return of Nifty (X)) is 5.2599, and the p-value is 3.6574, which is more than 0.05, indicating that Beta (\u03b2) is not statistically significant at the 5% level.<\/span><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"margin-left: 72.0pt;text-align: justify;text-indent: -18.0pt\"><span style=\"text-indent: -18pt;font-family: 'Courier New'\">o<span style=\"font-size: 7pt;line-height: normal;font-family: 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><span lang=\"EN-US\" style=\"text-indent: -18pt\">The number of observations is 48, and R^2 is 0.3756, meaning that 37.56% of the variation in the Weekly Return of Apollo Hospital Enterprise (Y) is explained by the Weekly Return of Nifty (X), while the remaining 62.44% is attributed to other factors not included in the model, such as equity fundamentals.<\/span><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\"><span lang=\"EN-US\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 <\/span><span style=\"text-align: justify;text-indent: -18pt;font-family: 'Courier New'\">o<span style=\"font-size: 7pt;line-height: normal;font-family: 'Times New Roman'\">\u00a0\u00a0 <\/span><\/span><span lang=\"EN-US\" style=\"text-align: justify;text-indent: -18pt\">This is a good sign, as the Nifty index influence is less, and the company fundamentals are strong. The F-stat is 27.6661, and the p-value is 3.6574, indicating that the overall model is statistically\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0significant at the 5% level.<\/span><\/p>\n<p class=\"MsoListParagraphCxSpLast\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">\u00a0<\/span><\/i><\/b><\/p>\n<p class=\"MsoNormal\" style=\"text-align: justify\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0Conclusion:<br \/><\/span><\/i><\/b>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Since Beta (\u03b2) = 1.0219, <span lang=\"EN-US\">which is more than 1, the stock is an aggressive one, and one must invest in this company for the short term if Nifty is expected to rise.<\/span><\/p>\n<p class=\"MsoNormal\"><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/span><\/i><\/b><b><i><span style=\"font-size: 14.0pt;line-height: 107%\">\u00a0References:<\/span><\/i><\/b><\/p>\n<p class=\"MsoListParagraphCxSpFirst\" style=\"text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: Symbol\"><span>\u00b7<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 <\/span><\/span><\/span><!--[endif]--><b>Sharpe, W. F. (1964).<\/b><br \/>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0Capital Asset Prices: A Theory of Market Equilibrium under Conditions of Risk.<br \/><i><span>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 <\/span>The Journal of Finance, 19<\/i>(3), 425\u2013442.<br \/><i>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 (Foundational paper explaining Beta and systematic risk under CAPM)<\/i><\/p>\n<p class=\"MsoListParagraphCxSpMiddle\" style=\"text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: Symbol\"><span>\u00b7<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 <\/span><\/span><\/span><!--[endif]--><b>Bodie, Z., Kane, A., &amp; Marcus, A. J. (2021).<\/b><br \/><i>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 Investments<\/i> (11th ed.). McGraw-Hill Education.<br \/><i>\u00a0 \u00a0 \u00a0 \u00a0 \u00a0(Explains aggressive vs defensive stocks based on Beta values)<\/i><\/p>\n<p class=\"MsoListParagraphCxSpLast\" style=\"text-indent: -18.0pt\"><!-- [if !supportLists]--><span style=\"font-family: Symbol\"><span>\u00b7<span style=\"font: 7.0pt 'Times New Roman'\">\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0<\/span><\/span><\/span><!--[endif]--><span> \u00a0<\/span><b>Ross, S. A., Wester field, R., &amp; Jaffe, J. (2019).<\/b><br \/><i>\u00a0 \u00a0 \u00a0 \u00a0 Corporate Finance<\/i> (12th ed.). McGraw-Hill Education<\/p>\n<p class=\"MsoNormal\">\u00a0<\/p>\n<p class=\"MsoNormal\">\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Topic: Relationship of Nifty 50 with Apollo Hospital Enterprise LimitedAuthor: Aashi Singh Introduction:Apollo Hospitals Enterprise Limited (AHEL) is an Indian multinational healthcare group headquartered in Chennai. It was founded in 1983 by Dr. Prathap C. Reddy as the first corporate healthcare provider in India. The company has since evolved into Asia&#8217;s foremost integrated healthcare services&hellip; <a class=\"more-link\" href=\"http:\/\/www.sachdevajk.in\/?p=23208\">Continue reading <span class=\"screen-reader-text\">Relationship with Nifty 50 with Apollo hospital ltd<\/span><\/a><\/p>\n","protected":false},"author":139967,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23208","post","type-post","status-publish","format-standard","hentry","category-uncategorized","entry"],"_links":{"self":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23208","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\/139967"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23208"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23208\/revisions"}],"predecessor-version":[{"id":23209,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23208\/revisions\/23209"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23208"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23208"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23208"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}