AN ANALYTICAL STUDY ON IMPACT OF COVID-19 PANDEMIC ON THE INDIAN STOCK MARKET WITH REFERENCE TO NSE

Ravina Parmar; Dr. Chinmayee Janardan Bhatt

Authors

Ravina Parmar Research Scholar, Department of Commerce & Management, Rai University, AhmedabadResearch Scholar, Department of Commerce & Management, Rai University, Ahmedabad
Dr. Chinmayee Janardan Bhatt Associate Professor, Department of Commerce & Management, Rai University, Ahmedabad

Abstract

COVID-19 quickly spread all over the world and dramatically affected the financial markets in almost every country. Its spread created havoc in the market, and investors fearing risk suffered a significant amount of financial loss in a very short time. This article aims to analyze the impact of COVID-19 on stock markets in its top pick time based on the total number of cases confirmed. In addition, it also analyzes the stock market volatility caused by the virus and the abnormal returns generated by the markets during the pandemic.

We employ event study methodology in different sub-periods to examine the most volatile event periods with the daily rise in the Covid cases and subsequent returns generated by the markets during these sub-periods in relation to the daily rise in the case.

The increase in volatility and the presence of significant abnormal returns among the sample indices show the impact of COVID-19 on stock markets. The result reveals that stock indices show the highest decline with a fall of more than 50% during the pandemic.

For the COVID - 19 Confirmed cases is 48% which means that for each additional in the total cases for the COVID - 19 Confirmed cases the National Stock exchange Financial Market was negatively impacted for the same amount as well.

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