Journal Press India^®

Author Details ( * ) denotes Corresponding author

With the recent outbreak of Covid-19 and the pandemic taking its toll on the entire global economy as well as each and every sector, it becomes a necessity for an investor to assess their potentiality of investments. In this regard, this paper aims at finding, using non-parametric test, whether the pandemic had an impact on the stock market or the sectors of the economy. It also aims to find out the sensitivity of the different sectors to the market with such pandemic affecting the world. The paper tries to make an attempt to find the predictors of market return. It also highlights whether large cap, mid cap or small cap indices react to such happenings in the Indian market. The results of the analysis show that there is no significant difference in the market index returns and the sectoral indices returns between the pre-Covid and post-Covid outbreak period.

Keywords

Covid-19; BSE sensex; Sectoral indices; Beta; Market capitalization index.

1. Albuquerque, R. A., Koskinen, Y., Yang, S., & Zhang, C. (2020). Love in the time of covid-19: The resiliency of environmental and social stocks. CEPR Discussion Papers 14661, C.E.P.R. Discussion Papers.
2. Baker, S. R., Bloom, N., Davis, S. J., Kost, K. J., Sammon, M. C., & Viratyosin, T. (2020). The unprecedented stock market impact of covid-19. NBER Working Paper 26945, National Bureau of Economic Research, Cambridge, MA.
3. BBC News. (2020, November 1). Coronavirus: FTSE 100, Dow, S&P 500 in worst day since 1987. March 12. Retrieved from: https://www.bbc.com/news/business-51829852 
4. Cao, M., & Wei, J. (2005). Stock market returns: A note on temperature anomaly. Journal of Banking and Finance, 29(6), 1559-1573.
5. Economic Times. (2020, April 2). Covid-19 impact on Indian automotive industry- Taking action in troubled times. Industry news. April 02. Retreived from:  https://auto.economictimes.indiatimes.com/news/industry/opinion-covid-19-impact-on-indian-automotive-industry-taking-action-in-troubled-times/74944847(accessed October 1, 2020)
6. Ghosh, S. & Chakraborty, T. (2018). Active investment and investing actively: An empirical study of Indian stock market. Vestnik of Saint Petersburg University Management, 17(2)S, 185-203
7. Ingalhally, V. B., Reddy, Y. V., & Sahay, H. (2017). Integration of markets during pre and post subprime crisis: Evidence from India. Amity Journal of Finance, 2(1), 17-30 
8. Kamalakannan, P., & Sathyakala, S. 2020. A Study On Pre And Post Demonetisation Impacts On Selected Sectors (With Reference To Indian Stock Market). International Journal of Scientific & Technology Research 9(3), 5510-5522
9. Liu, H. J., Manzoor, A., Wang, C.Yu., Zhang, L., & Manzoor, Z. (2020). The covid-19 outbreak and affected countries stock markets response. International Journal of Environmental Research and Public Health, 17(2800), 1-19.
10. Nishad, T. M., & Thomachan, K. T. (2015). How volatile is Indian stock market? A study based on selected sectoral indices. International Journal of Research – Granthaalayah, 3(12), 142-149.
11. Ozili, P., & Arun, T. (2020). Spillover of COVID 19: impact on the Global Economy.  SSRN Electronic Journal. Retrieved from: https://www.researchgate.net/publication/ 340236487_Spillover_of_COVID  19_impact_on_the_Global_Economy
12. Zhang, D., Hu, M., & Ji, Q. (2020). Financial markets under the global pandemic of Covid 19. Finance Research Letters, pp. 1544-6123 Retreived from:  https://doi.org/ 10.1016/j.frl.2020.101528:1544-6123.