Financial Risk Management
The Impact of Covid-19 on Selected Securities Traded on NSE India: An Empirical Analysis

Article Details
Pub. Date : Mar, 2021
Product Name : The IUP Journal of Financial Risk Management
Product Type : Article
Product Code : IJFRM10321
Author Name : Raghunandan S Nair*, Diya Alur** and Christopher Devakumar
Availability : YES
Subject/Domain : Finance Management
Download Format : PDF Format
No. of Pages : 22

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Abstract

This paper carries out a brief study of the impact of Covid-19 on seven indices of the Indian economy. For the analysis, risk, covariance, and Capital Market Line (CML) formulas have been applied to the same set of stocks belonging to two different time periods, i.e., pre- and post-Covid. Using these formulas and two tools, namely, the Granger Causality Test and the Augmented Dickey- Fuller Model (ADF), the impact of Covid-19 on the stocks has been analyzed. After a thorough analysis, it is concluded that the impact of the pandemic has been drastic on the selected stocks and the performance of the stocks has been highly fluctuating post Covid-19.


Introduction

The Indian stock exchanges are held in high esteem across the globe. The Bombay Stock Exchange (BSE) is the oldest stock exchange in Asia and has been prominent for the past 140 years. The National Stock Exchange (NSE) is a more recent establishment, and it has become the biggest and most advanced stock exchange in the country. The stock market has always been a reliable investment avenue that has helped in the industrial and economic development of the country. In 2020, the stock markets across the globe witnessed a major upheaval. The unprecedented coronavirus outbreak caused a pandemic that was not only a global health crisis but also a huge economic downturn. Due to the rapid spread of the highly contagious disease, the entire world went into a lockdown, where all activities came to a halt and the markets were shut down. India was already going through a prolonged economic slowdown and the pandemic made matters worse.


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ISBN: 978-81-314-2793-4
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