THE OUTBREAK OF COVID-19 AND ITS IMPACT ON STOCK PRICES

Author(s): Harishma P Mohandas, Dr. Vineetha S Das

Abstract: The spread of Covid 19 has had unprecedented consequences on the world economy. It has affected both developing as well as developed economies. The stock market is a key driver in the development of any economy. It helps the industry as well as investors alike. The pandemic and the lockdown had a very bad effect on the individuals as well as the nation. This study examines the impact of the lockdown announcement imposed by the Indian government on the different leading sectors of the economy. Nifty Auto, Nifty Bank, Nifty Financial Services, Nifty FMCG, Nifty IT, Nifty Media, Nifty Metal, Nifty Pharma, Nifty Private bank, Nifty Realty, Nifty Oil & Gas, Nifty Consumer Durables and Nifty healthcare are sectors of NSE taken for the study. Event study method is used for this analysis. To study the impact of an event, most of the studies have used the event study method in the field of economics and finance. Data were collected from the NSE website.