School of Management

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Browsing School of Management by Subject "COVID-19"

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    Reaction of Indian Stock Market to Outbreak of COVID-19: An Empirical Analysis of Extreme Inter-day Movements
    (Sage Publications India Pvt. Ltd, 2023-10-07T00:00:00) Sharma, Dhanraj; Verma, Ruchita; Sam, Shiney; Sharma, Shubham
    The contagious COVID-19 pandemic has been considered a massive global crisis since World War II and has disturbed business and economic activities across the globe. The current study examined the reaction of the stock market�s to the outbreak of COVID-19, considering the extreme inter-day movements in the Indian stock market. The extreme inter-day movements in S&P CNX Nifty-50 have been identified during the study period from January 2020 to December 2021 and further classified into decline and gain events based on positive and negative announcements related to COVID-19. The study utilized an event study approach and panel regression for empirical investigation. The results of the event study analysis illustrate that the significant abnormal loss ranges from 12.86% to 2.47% for the major decline events and significant abnormal return from 8.43% to 3.23% for the gain events. The regression analysis results showed that real return and Central Bank Policy rate have a considerable impact on the abnormal returns during COVID-19. The study�s findings are helpful to policy implications that identified the need to focus on financial education and strengthen the health and finance-related policies to deal with such pandemics in the future. � 2023 MDI.
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    STOCK MARKET REACTION TO COVID-19 PANDEMIC: An Empirical Analysis of Major Global Indices
    (Nigerian Economic Society, 2022-11-30T00:00:00) Verma, Ruchita; Sharma, Dhanraj; Sam, Shiney
    The present study examined the behaviour of the ten major stock indices with the highest market capitalization in the global financial market during the COVID-19 pandemic, using an event study approach. Further, the abnormal returns (AR) from the event study are regressed on the death cases due to COVID-19, on returns of selected stock indices, and on market returns to obtain more robust results. The results revealed that all the major indices were affected by the lockdown announcement in their respective countries and continued to yield negative abnormal returns during the lockdown phase, except the Hang Sheng Index of Hong Kong. The opposite reaction of the investors in Hong Kong led to an unperturbed Hang Sheng stock market amid a global crisis. Findings will help investors understand the behaviour of major stock indices during a crisis period and enable them prepare their portfolios accordingly to withstand risky periods. Also, investors' attitudes towards investment risk can make a notable difference in the economy. � 2022, Nigerian Economic Society. All rights reserved.