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COVID-19 and the Stock Market: A Comparative Study of India and the World

Nirbhay Mishra1 , Dharmpal Singh2 , Radhakrishna Jana3 , Sudipta Kumar Dutta4 , Arnab Majee5 , Debmitra Ghosh6

Section:Research Paper, Product Type: Journal Paper
Volume-11 , Issue-01 , Page no. 66-75, Nov-2023

Online published on Nov 30, 2023

Copyright © Nirbhay Mishra, Dharmpal Singh, Radhakrishna Jana, Sudipta Kumar Dutta, Arnab Majee, Debmitra Ghosh . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

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IEEE Style Citation: Nirbhay Mishra, Dharmpal Singh, Radhakrishna Jana, Sudipta Kumar Dutta, Arnab Majee, Debmitra Ghosh, “COVID-19 and the Stock Market: A Comparative Study of India and the World,” International Journal of Computer Sciences and Engineering, Vol.11, Issue.01, pp.66-75, 2023.

MLA Style Citation: Nirbhay Mishra, Dharmpal Singh, Radhakrishna Jana, Sudipta Kumar Dutta, Arnab Majee, Debmitra Ghosh "COVID-19 and the Stock Market: A Comparative Study of India and the World." International Journal of Computer Sciences and Engineering 11.01 (2023): 66-75.

APA Style Citation: Nirbhay Mishra, Dharmpal Singh, Radhakrishna Jana, Sudipta Kumar Dutta, Arnab Majee, Debmitra Ghosh, (2023). COVID-19 and the Stock Market: A Comparative Study of India and the World. International Journal of Computer Sciences and Engineering, 11(01), 66-75.

BibTex Style Citation:
@article{Mishra_2023,
author = {Nirbhay Mishra, Dharmpal Singh, Radhakrishna Jana, Sudipta Kumar Dutta, Arnab Majee, Debmitra Ghosh},
title = {COVID-19 and the Stock Market: A Comparative Study of India and the World},
journal = {International Journal of Computer Sciences and Engineering},
issue_date = {11 2023},
volume = {11},
Issue = {01},
month = {11},
year = {2023},
issn = {2347-2693},
pages = {66-75},
url = {https://www.ijcseonline.org/full_spl_paper_view.php?paper_id=1414},
publisher = {IJCSE, Indore, INDIA},
}

RIS Style Citation:
TY - JOUR
UR - https://www.ijcseonline.org/full_spl_paper_view.php?paper_id=1414
TI - COVID-19 and the Stock Market: A Comparative Study of India and the World
T2 - International Journal of Computer Sciences and Engineering
AU - Nirbhay Mishra, Dharmpal Singh, Radhakrishna Jana, Sudipta Kumar Dutta, Arnab Majee, Debmitra Ghosh
PY - 2023
DA - 2023/11/30
PB - IJCSE, Indore, INDIA
SP - 66-75
IS - 01
VL - 11
SN - 2347-2693
ER -

           

Abstract

The COVID-19 pandemic had a profound impact on global financial markets, including the stock market in India and worldwide exchanges. This abstract provides an overview of the effects of COVID-19 on these markets and the factors influencing their performance. The outbreak of COVID-19 in early 2020 caused disruptions across various sectors, resulting in significant volatility in stock markets worldwide. In India, benchmark indices such as BSE Sensex and NSE Nifty experienced sharp declines as investors reacted to the uncertainties and potential economic consequences of the virus. The Indian government`s strict lockdown measures further contributed to market turmoil, as businesses faced challenges in maintaining operations and generating revenue. Government interventions and monetary stimulus measures aimed at mitigating the economic impact of the crisis provided some stability to the Indian stock market as the pandemic progressed. Sectors like healthcare, pharmaceuticals, and information technology showed relative resilience and even growth due to increased demand and digitalization trends. Conversely, sectors such as travel, hospitality, and retail faced significant setbacks, leading to declines in their stock prices. Similarly, global stock markets witnessed a similar pattern during the pandemic. The initial onset of the crisis led to widespread sell-offs, resulting in substantial declines in major indices such as the Dow Jones Industrial Average, S&P 500, and FTSE 100. However, governments and central banks worldwide implemented unprecedented fiscal and monetary measures, gradually helping stock markets recover. Stimulus packages, low interest rates, and liquidity injections boosted investor confidence and provided support for equities. The pace of economic recovery and the success of vaccination campaigns played crucial roles in shaping stock market performance, both in India and globally. Positive developments regarding vaccine approvals and declining infection rates often resulted in market rallies, while setbacks in virus containment or the emergence of new variants led to increased market volatility. It is worth noting that the impact of COVID-19 on stock markets varied across sectors and companies. Industries that adapted well to the pandemic and capitalized on digital infrastructure experienced growth, while others struggled to survive. Investors increasingly focused on companies with strong balance sheets, robust digital presence, and the ability to adapt to changing consumer behaviours. In conclusion, the COVID-19 pandemic significantly affected the Indian stock market and global stock exchanges, leading to periods of high volatility and market declines. Government interventions and stimulus measures played a crucial role in stabilizing markets, while the pace of economic recovery and vaccination campaigns influenced investor sentiment. The pandemic highlighted the importance of adaptability and resilience for businesses, emphasizing the need for careful risk assessment and diversification in investment strategies.

Key-Words / Index Term

COVID-19, Indian stock market, Global stock market, Pandemic, Market Fluctuations etc.

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