Indian Stock Market during the COVID-19 Pandemic: Vulnerable or Resilient?: Sectoral analysis
Articles
Rishika Shankar
Faculty of Management Studies, University of Delhi, India
https://orcid.org/0000-0001-9279-0561
Priti Dubey
Faculty of Management Studies, University of Delhi, India
https://orcid.org/0000-0002-3077-2074
Published 2021-05-20
https://doi.org/10.15388/omee.2021.12.51
PDF
HTML

Keywords

Average returns
Covid-19
Indian Stock Market
Trading Volume

How to Cite

Shankar, R. and Dubey, P. (2021) “Indian Stock Market during the COVID-19 Pandemic: Vulnerable or Resilient?: Sectoral analysis”, Organizations and Markets in Emerging Economies, 12(1), pp. 131–159. doi:10.15388/omee.2021.12.51.

Abstract

This study examines the impact of COVID-19 pandemic on the performance of Indian stock market, measured by daily average returns and trading volume. The analysis is aimed at discovering the vulnerability of the general market as well as nine crucial sectors to the pandemic while also checking the impact on overall volatility in the market. The findings suggest that all the sectors followed a consistent pattern of being significantly impacted by the pandemic. However, the benchmark index remained resilient in the context of average returns. The entire market witnessed decreased returns and increased liquidity, which is explained by reduced volatility in the market.

PDF
HTML

References

(2020) An introduction to the Indian Stock Market. Investopedia. https://www.investopedia.com/articles/stocks/09/indian-stock-market.asp
Alam, M.N., Alam, M.S., & Chavali, K. (2020). Stock market response during COVID-19 lockdown period in India: An event study. Journal of Asian Finance, Economics and Business Vol 7 No 7, 131-137.
Alber, N. (2020). The Effect of Coronavirus Spread on Stock Markets: The Case of the Worst 6 Countries, Available at SSRN: https://ssrn.com/abstract=3578080 or http://dx.doi.org/10.2139/ssrn.3578080
Ali. M., Alam. N. and Rizvi, S.A.R. (2020). Coronavirus (COVID-19)— An epidemic or pandemic for financial markets, Journal of Behavioral and Experimental Finance 27 100341
Ashraf, B.N. (2020). Stock markets’ reaction to COVID-19: cases or fatalities? Research in International Business and Finance. doi: https://doi.org/10.1016/j.ribaf.2020.101249
Baker, S.R., Bloom, N., Davis, S.J., Kost, K., Sammon, M., & Viratyosin, T. (2020). The unprecedented stock market reaction to COVID-19. Hoover Institution Economics Working Papers.
Barro R.J. (2020). The coronavirus and the great influenza pandemic: Lessons from the “Spanish flu” for the coronavirus’s potential effects on mortality and economic activity. NBER Working Paper Series Bo. 26866.
Daube, C.H. (2020). The Corona Virus Stock Exchange Crash. Institute of Accounting, Controlling and Financial Management.
Dev, S.M., & Sengupta, R. (2020). COVID-19: Impact on the Indian Economy. Indira Gandhi Institute of Development Research.
Donadelli, M., Kizys, R., & Riedel, M. (2016). Dangerous infectious diseases: Bad news for Main street, good news for Wall Street? Journal of Financial Markets, 84-103.
Fu, M., & Shen, N. (2020). COVID-19 and corporate performance in the energy industry. Energy Research Letters, 1(1). Doi: https://doi.org/10.46557/001c.12967
Gormsen, N.J., & Koijen, R.S.J. (2020). Coronavirus: Impact on Stock Prices and Growth Expectations. Doi: https://ssrn.com/abstract=3555917.
Gujarati, D.N., (2009). Essentials of Econometrics. McGraw Hill Companies Inc.
He, Q., Liu, J., Wang, S., & Yu, J. (2020). The impact of COVID-19 on stock markets. Economic and Political Studies.
Lei, Y. C. (2005). The trading volume trend, investor sentiment, and stock returns. LSU Doctoral Dissertations. https://digitalcommons.lsu.edu/gradschool_dissertations/2012
Liu, H., Manzoor, A., Wang, C., Zhang, L., & Manzoor, Z. (2020). The COVID-19 outbreak and affected countries stock market response. International Journal of Environmental Research and Public Health, 17, 2800.
Manojkrishnan, C.G. & Aravind, M. (2020). COVID-19: Effect on leading pharmaceutical stock listed with NSE. International Journal of Research in Pharmaceutical Sciences, 11(1), 31-36.
Mazur, M., Dang, M., & Vega, M. (2020). COVID-19 and the March 2020 stock market crash. Evidence from S&P1500. Finance Research Letters. Doi: https://doi.org/10.1016/j.frl.2020.101690
Mirza. N., Naqvi. B., Rahat. B. and Rizvi, S.K.A. (2020). Price reaction, volatility timing and funds’ performance during Covid-19, Finance Research Letters, https://doi.org/10.1016/j.frl.2020.101657
Mishra, A.K., Rath, B.N., & Dash, A.K. (2020). Does the Indian Financial Market Nosedive because of the COVID-19 Outbreak, in Comparison to after Demonetization and the GST? Emerging Markets Finance and Trade. Doi: https://doi.org/10.1080/1540496X.2020.1785425
NDTV Profit. (2020). With inflation ticking higher it may be time for RBI to pause rate-cutting cycle.
Newey, W. K., & West, K.D. (1987). A simple positive semi-definite, heteroskedasticity and autocorrelation consistent covariance matrix. NBER Working Paper No. t0055. Available at SSRN: https://ssrn.com/abstract=225071
Ortmann, R., Pelster, M. and Wengerek, S.T. (2020). Finance Research Letters, https://doi.org/10.1016/j.frl.2020.101717
Peng, L., & Lei, L. (2005). A review of missing data treatment methods. Intelligent Information Management System Technology.
Phan, D.H.B., & Narayan, P.K. (2020). Country Responses and the Reaction of the Stock Market to COVID-19- A Preliminary Exposition. Emerging Markets Finance and Trade. Doi: https://doi.org/10.1080/1540496X.2020.1784719
Reuters. (2020). Italy statistics bureau forecasts GDP to fall 8.3% in 2020 on coronavirus hit.
Singh, M.K., & Neog, Y. (2020). Contagion effect of COVID-19 outbreak: Another recipe for disaster on Indian Economy. Practitioner Paper. DOI: 10.1002/pa.21
Topcu, M. and Gulal, O.S. (2020). The impact of COVID-19 on emerging stock markets, Finance Research Letters, https://doi.org/10.1016/j.frl.2020.101691
Yilmazkuday, H. (2020). COVID-19 effects on the S&P 500 index. Doi: https://ssrn.com/abstract=3555433

Most read articles by the same author(s)

1 2 3 4 5 > >>