A Study on Impact of Covid-19 on Indian Stock Market with reference to BSE Sensex and Sectoral Indices

Abstract

The breakout of COVID-19 has thrown the world economy into disarray. COVID-19 began in Wuhan, China, and has since expanded throughout the world. In this situation, a worldwide economic downturn and disruption in demand and supply is expected to result in an unavoidable financial crisis and slowdown as a result of the extended global lockout. The current empirical study looks at the effects of COVID19 on the performance of the Indian stock market, namely the BSE Sensex and Ten Sectoral indices. The objective of the study is to analyse the impact of COVID-19 on Indian stock market and how it had impacted BSE Sensex and Sectoral indices considering two time period i.e., before and during the crisis period and making comparison. Also aims to examine the volatility of stock returns during the crisis. The research is only based on historical data for a 10-month period, from August 2019 to May 2020. Descriptive statistics and a linear regression model are used to analyse the data. The study's main findings demonstrate that the standard deviation of all indies has increased, skewness has become negative, and kurtosis values are very large. However, according to the study, the crisis had little immediate influence on the stock market, indicating that the impact was just temporary.