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Erschienen in:

02.07.2022

Covid-19 pandemic and stock returns in India

verfasst von: Munusamy Dharani, M. Kabir Hassan, Makeen Huda, Mohammad Zoynul Abedin

Erschienen in: Journal of Economics and Finance | Ausgabe 1/2023

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Abstract

This paper examines whether the Covid-19 pandemic has had a homogeneous or heterogeneous effect on stock returns in India. We consider panel data by using 1,318 companies that are listed on the National Stock Exchange of India. We find that the daily growth rate in Covid-19 cases and Covid-19 deaths are negatively associated with stock returns. Further, we observe that the average stock returns during Lockdown 2 are positive and highly significant, while the returns during Lockdowns 3 and 4 are negative. Moreover, our results show that the chemical, technology, and food and beverage industries earn higher returns. In contrast, the banking and finance, automotive, services, and cement and construction industries yield lower returns for the overall period. Interestingly, all industry groupings in this study earn a positive return during the lockdown period. In particular, the chemical, technology, automotive, metals and mining, and food and beverage industries provide higher returns during the lockdown period. Finally, this study supports the claim that the Covid-19 pandemic has had a heterogeneous effect in the Indian stock markets.

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Metadaten
Titel
Covid-19 pandemic and stock returns in India
verfasst von
Munusamy Dharani
M. Kabir Hassan
Makeen Huda
Mohammad Zoynul Abedin
Publikationsdatum
02.07.2022
Verlag
Springer US
Erschienen in
Journal of Economics and Finance / Ausgabe 1/2023
Print ISSN: 1055-0925
Elektronische ISSN: 1938-9744
DOI
https://doi.org/10.1007/s12197-022-09586-8

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