Short-Term Impact of COVID-19 on Indian Stock Market

The onset of the COVID-19 pandemic and lockdown announcements by governments have created uncertainty in business operations globally. For the first time, a health shock has impacted the stock markets forcefully. India, one of the major emerging markets, has witnessed a massive fall of around 40% in...

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Autores principales:	Yashraj Varma, Renuka Venkataramani, Parthajit Kayal, Moinak Maiti
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	crisis NIFTY50 COVID-19 sustainable event studies India Risk in industry. Risk management HD61 Finance HG1-9999
Acceso en línea:	https://doaj.org/article/cb8139ce1e3c494796e62a5fbf13412e
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spelling	oai:doaj.org-article:cb8139ce1e3c494796e62a5fbf13412e2021-11-25T18:08:47ZShort-Term Impact of COVID-19 on Indian Stock Market10.3390/jrfm141105581911-80741911-8066https://doaj.org/article/cb8139ce1e3c494796e62a5fbf13412e2021-11-01T00:00:00Zhttps://www.mdpi.com/1911-8074/14/11/558https://doaj.org/toc/1911-8066https://doaj.org/toc/1911-8074The onset of the COVID-19 pandemic and lockdown announcements by governments have created uncertainty in business operations globally. For the first time, a health shock has impacted the stock markets forcefully. India, one of the major emerging markets, has witnessed a massive fall of around 40% in its major stock indices’ value. Therefore, we examined the short-term impact of the pandemic on the Indian stock market’s major index (NIFTY50) and its constituent sectors. For our analysis, we used three different models (constant return model, market model, and market-adjusted model) of event study methodology. Our results are heterogeneous and largely depend on the sectors. All the sectors were impacted temporarily, yet the financial sector faced the worst. Sectors like pharma, consumer goods, and IT had positive or limited impacts. We discuss the potential explanations for the same. These results may be useful for investors in safeguarding equity portfolios from unforeseen shocks and making better investment decisions to avoid large, unexpected losses.Yashraj VarmaRenuka VenkataramaniParthajit KayalMoinak MaitiMDPI AGarticlecrisisNIFTY50COVID-19sustainableevent studiesIndiaRisk in industry. Risk managementHD61FinanceHG1-9999ENJournal of Risk and Financial Management, Vol 14, Iss 558, p 558 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	crisis NIFTY50 COVID-19 sustainable event studies India Risk in industry. Risk management HD61 Finance HG1-9999
spellingShingle	crisis NIFTY50 COVID-19 sustainable event studies India Risk in industry. Risk management HD61 Finance HG1-9999 Yashraj Varma Renuka Venkataramani Parthajit Kayal Moinak Maiti Short-Term Impact of COVID-19 on Indian Stock Market
description	The onset of the COVID-19 pandemic and lockdown announcements by governments have created uncertainty in business operations globally. For the first time, a health shock has impacted the stock markets forcefully. India, one of the major emerging markets, has witnessed a massive fall of around 40% in its major stock indices’ value. Therefore, we examined the short-term impact of the pandemic on the Indian stock market’s major index (NIFTY50) and its constituent sectors. For our analysis, we used three different models (constant return model, market model, and market-adjusted model) of event study methodology. Our results are heterogeneous and largely depend on the sectors. All the sectors were impacted temporarily, yet the financial sector faced the worst. Sectors like pharma, consumer goods, and IT had positive or limited impacts. We discuss the potential explanations for the same. These results may be useful for investors in safeguarding equity portfolios from unforeseen shocks and making better investment decisions to avoid large, unexpected losses.
format	article
author	Yashraj Varma Renuka Venkataramani Parthajit Kayal Moinak Maiti
author_facet	Yashraj Varma Renuka Venkataramani Parthajit Kayal Moinak Maiti
author_sort	Yashraj Varma
title	Short-Term Impact of COVID-19 on Indian Stock Market
title_short	Short-Term Impact of COVID-19 on Indian Stock Market
title_full	Short-Term Impact of COVID-19 on Indian Stock Market
title_fullStr	Short-Term Impact of COVID-19 on Indian Stock Market
title_full_unstemmed	Short-Term Impact of COVID-19 on Indian Stock Market
title_sort	short-term impact of covid-19 on indian stock market
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/cb8139ce1e3c494796e62a5fbf13412e
work_keys_str_mv	AT yashrajvarma shorttermimpactofcovid19onindianstockmarket AT renukavenkataramani shorttermimpactofcovid19onindianstockmarket AT parthajitkayal shorttermimpactofcovid19onindianstockmarket AT moinakmaiti shorttermimpactofcovid19onindianstockmarket
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Short-Term Impact of COVID-19 on Indian Stock Market

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