Relationship Between Risk and Return in Indian Pharmaceutical’s Sector

Relationship Between Risk and Return in Indian Pharmaceutical’s Sector

Deekshanna S, Preeti Singha

Department of Finance, Jain University

Abstract:
This research paper aims to evaluate the risk and return dynamics of India's pharmaceutical industry, one of the most prominent sectors in the Indian economy. Investors and stakeholders must comprehend the sector's risk-return profile due to its significant expansion and significance in global supply chains. In order to quantify and analyse risk and return, the study uses historical data from top pharmaceutical businesses that are listed on the Indian stock exchange. To evaluate the industry's risk-adjusted returns, a number of financial measures are computed, such as the standard deviation. In order to assess the relative risk and profitability of the pharmaceutical industry, the study also contrasts its performance with that of more general market indices, including the NIFTY 50. elements include market competition, legislative changes, and technological advancements, and global health trends are discussed as potential sources of risk and their impact on return profiles. The results of the analysis are expected to provide valuable insights for investors seeking to navigate the pharmaceutical industry’s volatility while maximizing returns. Additionally, the paper highlights the challenges and opportunities faced by the industry, contributing to a deeper understanding of its financial dynamics.