{"id":23960,"date":"2026-01-18T00:49:58","date_gmt":"2026-01-17T19:19:58","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=23960"},"modified":"2026-01-18T00:49:58","modified_gmt":"2026-01-17T19:19:58","slug":"a-study-of-the-relationship-between-abbott-india-ltd-and-nifty","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=23960","title":{"rendered":"A Study of the Relationship between Abbott India Ltd. and NIFTY"},"content":{"rendered":"

Author: Aditi Upadhyay

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

1. Introduction of the Company<\/span><\/h2>\n

Abbott India Ltd. is a leading pharmaceutical company in India and a subsidiary of Abbott Laboratories, USA. The company is engaged in the manufacturing, marketing, and distribution of branded generic pharmaceutical products. It operates across major therapeutic segments such as gastroenterology, women\u2019s health, cardiology, central nervous system, and nutrition. Due to the essential nature of healthcare products, Abbott India Ltd. is considered a defensive stock in the Indian stock market.<\/span><\/p>\n

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2. Objective of the Study<\/span><\/h2>\n

To calculate Beta and observe its significance.<\/span><\/p>\n

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3. Literature Review<\/span><\/h2>\n

Gupta and Verma (2015) found that pharmaceutical companies in India generally exhibit lower volatility compared to the broader market due to stable demand for healthcare products.<\/p>\n

Patel and Shah (2019) concluded that healthcare stocks often have lower beta values, making them suitable for risk-averse investors. These studies suggest that pharmaceutical stocks are less influenced by market-wide fluctuations.<\/span><\/p>\n

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4. Data Collection<\/span><\/h2>\n

Data Source: National Stock Exchange (NSE)
Period of Study: December 2024 \u2013 November 2025
Frequency: Weekly (Friday closing prices)<\/p>\n

Variables Used:
Independent Variable (X): NIFTY 50 Index returns
Dependent Variable (Y): Abbott India Ltd. stock returns<\/p>\n

A linear regression model was applied by regressing Abbott India Ltd.\u2019s weekly returns on NIFTY 50 weekly returns.<\/span><\/p>\n

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5. Data Analysis<\/span><\/h2>\n

Regression Equation:<\/p>\n

Return of Abbott India Ltd.
= \u22120.06 \u2212 0.78 \u00d7 Return of Market Index<\/p>\n

Statistical Results:<\/p>\n

Number of Observations (N): 48<\/p>\n

Multiple R: 0.444
R Square: 0.197
Adjusted R Square: 0.180
Beta (\u03b2): \u22120.78
Standard Error: 2.99
t-statistic (Beta): \u22123.36
P-value (Beta): 0.0016
F-statistic: 11.29
Significance F: 0.0016<\/p>\n

Explanation:<\/p>\n

The beta value of \u22120.78 indicates that Abbott India Ltd. moves inversely with the market index. A 1% increase in market returns leads to an average 0.78% decrease in Abbott India Ltd.\u2019s returns.<\/p>\n

The p-value of 0.0016 is less than 0.05, showing that the beta coefficient is statistically significant. Therefore, the relationship between market movements and Abbott India Ltd.\u2019s stock returns is meaningful.<\/p>\n

The R-square value of 0.197 suggests that 19.7% of the variation in Abbott India Ltd.\u2019s returns is explained by changes in the market index, while the remaining variation is due to company-specific factors such as product portfolio, healthcare demand, regulatory environment, and operational efficiency.<\/p>\n

The significant F-statistic (11.29) confirms that the regression model is statistically valid.<\/span><\/p>\n

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6. Conclusion<\/span><\/h2>\n

The study concludes that Abbott India Ltd. has a low and statistically significant relationship with the NIFTY 50 Index. Its defensive business nature and stable earnings make it less sensitive to market fluctuations. Therefore, Abbott India Ltd. is suitable for conservative investors and portfolio diversification.<\/span><\/p>\n

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7. References<\/span><\/h2>\n

Gupta, R., & Verma, S. (2015). Market Sensitivity of Pharmaceutical Stocks in India.
Patel, A., & Shah, M. (2019). Beta Analysis of Healthcare Sector Stocks.
NSE India \u2013 NIFTY 50 Historical Data.
Annual Reports of Abbott India Ltd.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Author: Aditi Upadhyay 1. Introduction of the Company Abbott India Ltd. is a leading pharmaceutical company in India and a subsidiary of Abbott Laboratories, USA. The company is engaged in the manufacturing, marketing, and distribution of branded generic pharmaceutical products. It operates across major therapeutic segments such as gastroenterology, women\u2019s health, cardiology, central nervous system,… Continue reading A Study of the Relationship between Abbott India Ltd. and NIFTY<\/span><\/a><\/p>\n","protected":false},"author":140040,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-23960","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\/23960","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\/140040"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23960"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23960\/revisions"}],"predecessor-version":[{"id":23961,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/23960\/revisions\/23961"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23960"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23960"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23960"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}