{"id":23533,"date":"2025-12-30T16:53:12","date_gmt":"2025-12-30T11:23:12","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23533"},"modified":"2025-12-30T16:53:12","modified_gmt":"2025-12-30T11:23:12","slug":"relationship-of-sun-pharmaceutical-industries-ltd-with-the-nifty-50","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23533","title":{"rendered":"Relationship of Sun Pharmaceutical Industries Ltd. with the Nifty 50"},"content":{"rendered":"

Title<\/span>\u00a0<\/span><\/p>\n

\u00a0Relationship of Sun Pharmaceutical Industries Ltd. with the Nifty 50<\/span><\/p>\n

\u00a0<\/b><\/p>\n

Author Name<\/span>\u00a0<\/span><\/p>\n

\u00a0Sanjana Heerani<\/span><\/p>\n

\u00a0<\/b><\/p>\n

Introduction<\/span><\/p>\n

Established in 1983, Sun Pharmaceutical Industries Ltd. is India\u2019s largest pharmaceutical company and a leading global specialty generic drug manufacturer. Headquartered in Mumbai, the company operates in more than 100 countries, with a strong presence in the United States, India, and emerging markets. Sun Pharma focuses on specialty medicines, generic formulations, and active pharmaceutical ingredients (APIs), covering key therapeutic areas such as dermatology, cardiology, psychiatry, neurology, and oncology.<\/span><\/p>\n

With over 40 manufacturing facilities worldwide and continuous investment in research and development, Sun Pharma has emerged as a dominant player in the Indian pharmaceutical industry. Its inclusion in the Nifty 50 Index reflects its strong market capitalization, liquidity, and consistent financial performance.<\/span><\/p>\n

\u00a0<\/b><\/p>\n

Objective<\/span><\/p>\n

To calculate the Beta of Sun Pharmaceutical Industries Ltd. To observe and analyze the relationship between Sun Pharma\u2019s returns and the Nifty 50 Index.<\/span><\/p>\n

\u00a0<\/b><\/p>\n

Literature Review<\/span><\/p>\n

View 1<\/span> \u2013 <\/span>R. Mehta & S. Kulkarni (2024)<\/span>
<\/span> A study on risk and return characteristics of pharmaceutical stocks in India found that pharma companies generally exhibit lower beta values due to stable demand and defensive nature of the sector.<\/span><\/p>\n

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View 2 \u2013 A. Pandey & R. Verma (2025)<\/span>
<\/span> An analysis of Nifty 50 sectoral stocks highlighted that healthcare and pharmaceutical stocks tend to outperform during volatile market phases due to their low correlation with market fluctuations.<\/span><\/p>\n

\u00a0<\/b><\/p>\n

Data Collection<\/span><\/p>\n

Secondary data for Sun Pharmaceutical Industries Ltd. and the Nifty 50 Index were collected from NSE India for the period 1 December 2024 to 30 November 2025. Friday closing prices were used to calculate weekly returns. Weekly returns of the Nifty 50 were considered as the independent variable (X). Weekly returns of Sun Pharmaceutical Industries Ltd. were taken as the dependent variable (Y). A regression analysis was conducted by regressing Y on X.<\/span><\/p>\n

\u00a0<\/b><\/p>\n

Data Analysis<\/span><\/p>\n

Regression Equation:<\/span><\/p>\n

Return (Sun Pharma) = 136.0114 + 0.06038 (Nifty 50)<\/span><\/p>\n

Statistical Results:<\/span><\/p>\n

Number of observations (N): 49<\/span><\/p>\n

R Square (R\u00b2): 0.818<\/span><\/p>\n

F-value: 211.58<\/span><\/p>\n

P-value: 0.000<\/span><\/p>\n

The above regression equation shows a positive relationship between the returns of Sun Pharmaceutical Industries Ltd. and the Nifty 50 Index. The positive coefficient indicates that when the return of the Nifty 50 increases, the return of Sun Pharma also increases, and vice versa.<\/span><\/p>\n

A one-unit increase in Nifty 50 returns leads to an increase of 0.06038 units in Sun Pharma\u2019s returns. The R\u00b2 value of 0.818 indicates that 81.8% of the variation in Sun Pharma\u2019s returns is explained by movements in the Nifty 50 Index, while the remaining 18.2% variation is due to firm-specific and other external factors not included in the model.<\/span><\/p>\n

The F-statistic value of 211.58 with a p-value of 0.000 confirms that the overall regression model is statistically significant at the 1% level.<\/span><\/p>\n

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Conclusion<\/span><\/p>\n

The beta value of Sun Pharmaceutical Industries Ltd. is less than one, indicating that the stock is less volatile than the overall market. This suggests that Sun Pharma behaves as a defensive stock, offering relatively stable returns during market fluctuations. Therefore, Sun Pharmaceutical Industries Ltd. is more suitable for risk-averse investors and long-term investment strategies, especially during periods of market uncertainty.<\/span><\/p>\n

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References<\/span><\/p>\n

R. Mehta & S. Kulkarni (2024)<\/span>
<\/span> Study on Risk and Return of Pharmaceutical Stocks in India<\/span>
<\/span> Journal of Financial Markets<\/span><\/p>\n

A. Pandey & R. Verma (2025)<\/span>
<\/span> Market Sensitivity of Sectoral Stocks in Nifty 50<\/span>
<\/span> Indian Journal of Investment Studies<\/span><\/p>\n

National Stock Exchange of India. (2025). Historical index and stock price data for Sun Pharmaceutical Industries Ltd. and NIFTY 50.<\/span> https:\/\/www.nseindia.com\/<\/span><\/a><\/p>\n

\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Title\u00a0 \u00a0Relationship of Sun Pharmaceutical Industries Ltd. with the Nifty 50 \u00a0 Author Name\u00a0 \u00a0Sanjana Heerani \u00a0 Introduction Established in 1983, Sun Pharmaceutical Industries Ltd. is India\u2019s largest pharmaceutical company and a leading global specialty generic drug manufacturer. Headquartered in Mumbai, the company operates in more than 100 countries, with a strong presence in the… Continue reading Relationship of Sun Pharmaceutical Industries Ltd. with the Nifty 50<\/span><\/a><\/p>\n","protected":false},"author":140063,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23533","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\/23533","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\/140063"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23533"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23533\/revisions"}],"predecessor-version":[{"id":23534,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23533\/revisions\/23534"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23533"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23533"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23533"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}