IMPACT OF COVID-19 LOCKDOWN ON INVESTOR RETURNS: EVIDENCE FROM INDIAN FINANCIAL MARKETS

Authors

  • Nishtha Gupta, et. al.

Abstract

This research investigates the consequences of COVID-19 on the relationship between stocks and bonds in Indian financial markets using Event Study Methodology. The study has been conducted around the lockdown phases to better analyze the effects of the crisis. The findings revealed that the stock market saw positive abnormal returns during the lockdown phases which is attributed to the existence of high market volatility at times that attracted trading volumes leading to certain significant returns to the investors. Whereas bond market did not see much ups and downs as a result of lack of investor confidence due to continuous economic slowdown and unstable fiscal status of the government. This study observes a positive correlation between stock and bond market movement at the time of COVID-19 where both the markets are declining and proves it to be affected greatly by the investor sentiment. However, as tested by the significance of Pearson Correlation Coefficient, the correlation is not as strong to be replicated for other crisis periods indicating again that the correlation between stock and bond returns differs with the economic conditions

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Published

2021-03-28

How to Cite

et. al., N. G. . (2021). IMPACT OF COVID-19 LOCKDOWN ON INVESTOR RETURNS: EVIDENCE FROM INDIAN FINANCIAL MARKETS. International Journal of Modern Agriculture, 10(2), 233 - 245. Retrieved from http://www.modern-journals.com/index.php/ijma/article/view/745

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Articles