Sharma, DhanrajVerma, RuchitaSam, ShineySharma, Shubham2024-01-212024-08-132024-01-212024-08-132023-10-07972262910.1177/09722629231185202https://kr.cup.edu.in/handle/32116/3072The 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.en-USCOVID-19Event StudyInter-day MovementStock MarketArticlehttp://journals.sagepub.com/doi/10.1177/09722629231185202