Analyzing Price Movement and Stock Volatility of Selected BSE listed Pharmaceutical Companies

Abstract

This paper makes an effort to examine the variation in price movement and volatility to predict short term risk and return of stock to four pharmaceutical companies, namely Lupin Pharma, Sun Pharma, Cadila and Cipla Ltd. Further investigation states that Lupin Pharma is providing higher return than Sun Pharma which is followed by Cipla Ltd and Cadila Ltd. respectively. Further the study examines higher volatility in the stock of Cadila Ltd and so it stood at the first position, Sun Pharma stood at the second position, Cipla stood at third and Lupin Pharma stood at the last position with lowest annual volatility. The study concludes that there is a higher risk in Cadila Ltd and Sun Pharma Ltd due to higher volatility and higher return is expected on their stock. Lastly the paper concludes that Lupin Pharma is expected to provide higher returns on its stock while carried out cumulated distribution function.