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Global Stock Markets and COVID-19: A Case Study of Indian Stock Exchanges

Vol 7 , Issue 2 , July - December 2020 | Pages: 117-134 | Research Paper  

 
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https://doi.org/10.17492/jpi.focus.v7i2.722006


Author Details ( * ) denotes Corresponding author

1. * Sanjib Banik, Assistant Professor, Department of Economics, Michael Madhusudan Dutta College, Sabroom, Tripura, India (sanjibsatadru@gmail.com)
2. Arjun Gope, Assistant Professor, Commerce , Ramthakur College, Agartala, Tripura, India (arjungope@rediffmail.com)
3. Sujit Deb, Associate Professor, Management Studies, ICFAI, Agartala, Tripura, India (sujit.deb1@gmail.com)

The outbreak of Coronavirus disease-19 has created a big challenge across the global stock markets. In this situation, the present study tries to empirically analyse the performance of the stock exchange markets in India during the Lockdown period. The study also undertakes a comparative analysis of Indian stock markets with global stock markets. Daily data relating to SENSEX and NIFTY have been used for the period from 1st March, 2020 to 15th May, 2020. The mean-adjusted returns model for the event study is used to assess the impact of lockdown announcements on the indices of BSE and NSE. The findings of the study suggest that during the lockdown period in India, the market acts as a semi-strong form efficiency. Besides, it is revealed that there is a sharp decline of index values of stock markets in India, USA, UK, Hong Kong and Germany in comparison to Shanghai and France. This research work would be useful for institutional and individual investors as well as speculators and industry analysts to track the risk associated with the impact of lockdown on stock exchanges.

Keywords

COVID-19; Lockdown; Financial market; Stock exchange; Event study method.

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