{"id":24872,"date":"2026-03-22T11:37:55","date_gmt":"2026-03-22T06:07:55","guid":{"rendered":"http:\/\/www.sachdevajk.in\/?p=24872"},"modified":"2026-03-22T11:37:55","modified_gmt":"2026-03-22T06:07:55","slug":"relationship-of-nifty-50-with-alkem-laboratories-ltd","status":"publish","type":"post","link":"http:\/\/www.sachdevajk.in\/?p=24872","title":{"rendered":"Relationship of nifty 50 with alkem laboratories ltd"},"content":{"rendered":"

Title: <\/span><\/b>Relationship of nifty 50 with alkem laboratories ltd.<\/span><\/b><\/p>\n

Author<\/span><\/b>: <\/span>Ayush Patil (36)<\/span><\/p>\n

\u00a0<\/p>\n

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

Alkem Laboratories Ltd, established in 1973 by the Singh brothers, is a leading Indian pharmaceutical company based in Mumbai. It specializes in generics and anti-infectives under brands like Taxim and Pan-D, operating 19 plants in India and 2 in the US. Alkem ranks highly in domestic formulations, exporting to over 50 countries with robust R&D and over 20,000 employees.<\/span><\/p>\n

\u00a0<\/p>\n

Objective:<\/span><\/b> Calculation of beta and observe its significance.<\/span><\/p>\n

\u00a0<\/p>\n

Literature review:<\/span><\/b><\/p>\n

Gupta and Sehgal (2024), suggest the applicability of the Capital Asset Pricing Model (CAPM) on Nifty 50 stocks and found that beta is statistically significant in explaining stock returns. Also found that systematic risk, measured through beta, plays a crucial role in determining stock performance relative to the market index.<\/span><\/p>\n

Gautam (2021) analyzed beta stability in the Indian capital market using Nifty index data and observed that beta reflects the sensitivity of individual stocks to market movements. Also found that stocks with lower beta values tend to be less volatile compared to the overall market.<\/span><\/p>\n

\u00a0<\/p>\n

Data collection:<\/span><\/b><\/p>\n

Data for nifty fifty and alkem laboratories ltd was downloaded from <\/span>www.nseindia.com<\/span><\/a> for the period 1-1-25 to 31-12-25. Friday closing price for nifty 50 and alkem laboratories ltd. was segregated. Weekly returns of nifty fifty and alkem laboratories ltd were calculated. Weekly returns of nifty fifty were taken as X and Weekly returns of alkem laboratories ltd. were taken as Y. Y was regressed on X. <\/span><\/p>\n

\u00a0<\/p>\n

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

Y= <\/span>\u2212<\/span>0.1320 + 1.0683X<\/span><\/p>\n

N = 48,\u00a0\u00a0\u00a0 <\/span>R2 <\/sup>= 0.3135,\u00a0\u00a0\u00a0\u00a0 <\/span>F = 21.0084,\u00a0\u00a0\u00a0\u00a0 <\/span>t Stat = 4.58,\u00a0\u00a0\u00a0\u00a0 <\/span>P-value = 0.000035<\/span><\/p>\n

The above Equation shows the relationship between Nifty 50 and alkem laboratories ltd. Positive means their Direct relation which means if Nifty 50 rises alkem laboratories ltd stock rise and vice versa. If Nifty 50 increases by 1 unit, the alkem laboratories ltd stock increases by 1.0683 unit.<\/span> Number of observations is 48. T-stat for beta is 4.58. The P value is 0.000035 less than 0.5 meaning Beta is statistically significant at 5% level.<\/span> R square is 0.3135 meaning 31.35% is the error due to the variable not included in model<\/span>. F is 21.0084 and P value is 0.000035 less than 0.5 meaning Beta is statistically significant at 5% level.<\/span><\/p>\n

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

B>1 , Hence invest for short term if Nifty 50 rise<\/span><\/p>\n

\u00a0<\/p>\n

Reference:<\/span><\/b><\/p>\n

1.\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Gautam, R. (2021). Empirical Testing of Beta Stability in Indian Capital Market.<\/span><\/p>\n

2.\u00a0\u00a0\u00a0\u00a0 <\/span><\/span><\/span>Gupta, S., & Sehgal, S. (2024). \u00a0<\/span>The Empirical Performance of the CAPM on NSE Nifty 50.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Title: Relationship of nifty 50 with alkem laboratories ltd. Author: Ayush Patil (36) \u00a0 Introduction: Alkem Laboratories Ltd, established in 1973 by the Singh brothers, is a leading Indian pharmaceutical company based in Mumbai. It specializes in generics and anti-infectives under brands like Taxim and Pan-D, operating 19 plants in India and 2 in the… Continue reading Relationship of nifty 50 with alkem laboratories ltd<\/span><\/a><\/p>\n","protected":false},"author":140202,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-24872","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\/24872","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\/140202"}],"replies":[{"embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=24872"}],"version-history":[{"count":1,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24872\/revisions"}],"predecessor-version":[{"id":24873,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=\/wp\/v2\/posts\/24872\/revisions\/24873"}],"wp:attachment":[{"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24872"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24872"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.sachdevajk.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24872"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}