Does Stock Market Variation Effect Stock Returns? An Empirical Study On BSE Sensex And Pharma Sector In India

Abstract

All investors should channelize their savings and reserves in various investment alternatives for fulfilling their requirements and to achieve the expecting returns in the future. Return in addition to risk measured to be the two greatest significant vital parameters should be analysed for choosing a stock in an investment decision making process. Therefore risk-return analysis is a vital tool in investment choice and construction of portfolio. India is the principal drugs producer in the world and is well-known for its valuable in contributing vaccines then generic medications. Indian Pharma sector is at present graded as third country in pharma producer by dimensions in the world. Subsequently Indian Pharma sector is emerging in the field of pharma over a time and obsessed through a prosperous sector increasing at a CAGR of 9.43 percent subsequently from the past 9 years. Consequently, this study is mainly related to analyse the pharma stock and Sensex. The analysis is mainly expressive in nature. It represents approximately risk and return related to sample pharma sector in Indian stock market. This analysis has scrutinized pharma companies in Indian security market over a span of 10 years, cover from July 1, 2012 to June 30, 2022. Aimed at to achieve the above purposes besides aimed to test hypothesis, various tools alike correlation, descriptive statistics and t test have been implemented for the study.