Download This PaperDaily COVID Cases and Selected Stock Market Indices An Attempt to Understand the Movements of the NIFTY 50 Index during the Pandemic
11 Pages Posted: 2 Mar 2022
Date Written: 2022
Abstract
The COVID pandemic has wreaked havoc on the world economy. The present study aims to understand how the Indian stock market reacts to daily COVID cases and the movement of other prominent global market indices like NASDAQ, DAX, Shanghai Index, and TOPIX. The researchers have taken the daily data from Jan 2020 to November 2020 for analysis. The objective was to build a simple model that explains the movement of the Nifty 50 index. The stock market indices of respective countries were taken as a proxy of the financial markets, and daily COVID cases symbolize the reason for volatility in the world markets. The study has used essential statistical tools like multiple regression, Breusch-Godfrey Serial Correlation L.M. Test, and Breusch-Pagan-Godfrey Heteroskedasticity test. The findings explained the movement of the NIFTY 50 by variables like Daily COVID cases, DAX index, Shanghai index, and TOPIX index.
Keywords: Nifty 50, COVID-19, Global markets
JEL Classification: G10, G15
Suggested Citation: Suggested Citation