News-Driven Volatility: A Deep Dive into Leading Nifty Healthcare Stocks

Sonal Mohapatra; Sayan Chakraborty

doi:10.31181/dma31202554

Authors

Sonal Mohapatra Department of Operations and IT, ICFAI Business School Hyderabad, Hyderabad, India https://orcid.org/0009-0003-8078-2881
Sayan Chakraborty Department of Operations and IT, ICFAI Business School Hyderabad, Hyderabad, India https://orcid.org/0000-0001-9871-5212

DOI:

https://doi.org/10.31181/dma31202554

Keywords:

Healthcare stocks, News, Volatility, ANOVA

Abstract

This study conducts a comprehensive analysis of stock price volatility within the healthcare sector, concentrating on five prominent companies: Sun Pharma, Dr. Reddy, Cipla, Apollo Hospitals, and Divis Laboratories. Leveraging annual daily data from the Nifty Healthcare Index for 2023, the research delves into the intricate relationship between stock price fluctuations and market-sensitive news events. Employing a robust methodology that integrates slope calculations, ANOVA, Tukey’s HSD tests, moving averages, and standard deviation metrics, the study evaluates the differential impact of these events on stock volatility. The findings reveal significant volatility, with Apollo Hospitals demonstrating the highest levels of price variability. The research highlights the profound influence of regulatory shifts, financial performance metrics, and macroeconomic conditions on stock behavior. These insights are pivotal for investors and financial analysts seeking to navigate the complex dynamics of the healthcare market. The application of moving averages further refines the analysis, offering a sophisticated lens through which to assess and interpret market trends, ultimately enhancing the strategic decision-making process within this critical sector.

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