A Report on the Impact of COVID-19 Pandemic on the Indian Stock Market

This report examines the impact of the COVID-19 pandemic on the Indian stock market. Using data from September 3, 2019, to July 10, 2020, the study analyzes the daily closing prices of the Sensex and Nifty indices to assess market volatility. The research compares stock value returns before and during the COVID-19 period, revealing increased instability in the Indian financial exchange during the pandemic. Findings indicate that pre-COVID-19 returns were higher than those during the pandemic. The report references various studies and analyses the impact of factors such as social distancing policies and domestic interest slowdown. The conclusion emphasizes the need for government policy measures to support the financial market and maintain sustainable development. The study highlights the importance of adapting investment strategies to navigate market uncertainties and avoid potential risks.

IMPACT OF COVID-19 ON INDIAAN STOCK MARKET
Abstract - The current Covid pandemic has unleashed devastation on the worldwide economy and India has
been hit essentially in each area from bank and the travel industry to framework advancement and rustic
metropolitan utilization. This paper explores the consequence of COVID 19 on the instability of stock costs in‐
India. Everyday shutting costs of stock records, Sensex and Nifty from September 3, 2019 to July 10, 2020 has
been employed for the examination. Further, the review has been endeavored to make a correlation of stock
value return in pre COVID 19 and throughout COVID 19 circumstance. Discoveries uncover that the‐ ‐ ‐
monetary exchange in India has encountered instability during the pandemic time frame.
While contrasting the outcome during COVID period and that of the pre COVID, it was concluded that the‐
profit from the records is higher in the pre COVID 19-time frame than throughout COVID 19.‐ ‐ ‐
The current pandemic has driven the market to decline anyway quick fundamental financial executions of
significant economies have guaranteed the business sectors have likewise seen perhaps the quickest
recuperation and along these lines we are given an extraordinary chance to settle on the ideal decisions and
merge the market and economy so that this recuperation is supported on a solid establishment as opposed
to shorting term market opinion.
INTRODUCTION
The fast spread of the COVID 19 pandemic has placed the world in jeopardy and distorted‐
the worldwide standpoint out of the blue. At first, the SARS CoV 2 infection, first observed‐ ‐
in Wuhan city, China in December 2019, and by time it increase all around the globe which
lead to the pandemic. This pandemic isn't just a worldwide wellbeing crisis yet in addition a
huge worldwide financial slump as well.
In this specific situation, the financial market has reacted with sensational development
and antagonistically impacted. The financial disturbance related with COVID 19 has‐
impacted the market seriously which incorporates both stock and security markets.
The two main stock exchange in India are
1. Bombay Stock Exchange 1(BSE), Sensex, and
2. National Stock Exchange (NSE), Nifty.
Sensex, also known as Sensitive Index, is the Index for the Bombay Stock Exchange. About
6000 organizations are recorded under the Bombay Stock Exchange, and basically it would
be difficult to investigate the presentation independently.
To address this issue, BSE utilizes Sensex. Sensex gets 30 organizations that are attracting,
and best for the market. In the event if any of these organizations are performing
inadequately, then, at that point, the market goes down. Nonetheless, if by some stroke of
good luck these 30 organizations are beating, then, at that point, the market patterns are
bullish.
Nifty is the Index that is used by the National Stock Exchange 2and is the blend of National
and Fifty (Nifty). It gathers the example of 50 performing and drawing stocks to decide the
market patterns.Like Sensex, Nifty picks stocks from various areas. A portion of these
incorporate the stocks from the areas like IT,vehicles, telecom, etc.
Both Nifty and Sensex are the Index that assists the stock advertisers with deciding the
general exhibition pattern of the securities exchange. The difference is Sensex contains 30
organizations, while Nifty involves 50 organizations.
1Indian stock exchange
2leading stock exchange of India

The presence of a large number of active stock advertisers, high liquidity, and dynamic
trading, both Nifty and Sensex are considered the best stock market in India. It has been
seen that following the rise of the COVID 19, the financial exchange went under dread as‐
BSE Sensex and NSE Nifty knock out by 38%.
LITERATURE REVIEW
The Indian monetary exchange productivity was anatomized by Amanulla and Kamaiah
(1995). They investigated the information of month-to-month total offer records of five
territorial stock trades viz. Bombay. Calcutta, Madras, Delhi, Ahmedabad from 1980-1983.
The results showed a since a long-time balance connection between value files of five stock
trades and additionally showed that there is no proof for market efficiencies of Bombay,
Madras and Calcutta stock trades while opposite proof was found on account of Delhi an
Ahmedabad.
Debjit Chakraborty (1997) led a review to comprehend the connection between major
financial pointers and securities exchange conduct as well as understanding the financial
exchange responses to changes in the monetary environment.
The pattern in securities exchanges was estimated addressing 100 organizations by utilizing
the BSE National Index of Equity Prices 3(Natex). Different elements that might actually
impact securities exchange developments were expansion, cash supply, development in
GDP4, financial shortage and credit store proportion. The outcomes showed that financial
exchange developments were to a great extent affected by wide cash supply, expansion,
credit store proportion.
Agarwala and Tuteja (2007) in addition observed a stable balanced connection between
financial exchange improvement and financial development. A new investigation of Sahoo
(2013) indicated that market-based signs of financial profundity positively affect financial
improvement in India.
Arun and Ozili (2020) have led an exact review on the influence of social removing strategy
that was embraced to forestall the extend of the Coronavirus, in four continents: North
Africa, Asia, Europe, and America. The investigation discovered that a month of social
distancing strategy or lockdown harms the financial system through its adverse
consequence on stock costs.
Significant discoveries of the review uncover the unpredictable idea of NSE Nifty and BSE
Sensex, these two noticeable securities exchange of India.
Observing the success of past development sequences in India, post-Covid-19 large scale
monetary bundles and strategy changes are a chance to trigger one such pattern, by
increasing the tendency of the normal Indian to expend more while keeping up with sound
financial dependable reserve funds as a level of their total assets.
3Represents the stock market performance of a country
4Measures the size of an economy

Dr. Kishore Kumar Das concentrated on how slowdown in home-grown interest can occur
during the Covid pandemic of COVID-19. This has confirmed as we have seen an extreme
disintegration of buying power because of pay cuts, employment misfortunes and the
stoppage impact of conceded request all joining to shape an enduring effect on various
areas. This effect is relied upon to be particularly articulated where the interest is optional
in nature.
Raja Ram in his investigation in 2020 discovered that COVID 19 smashes the whole‐
worldwide offer. Indian stock exchange likewise experienced sharp instability because of
the breakdown of the worldwide market. By inspecting the historical backdrop of all
startling occasions, the creator has considered COVID 19 additionally a "black swan"‐
5occasion.
In the same year, Ravi has analyzed the before and throughout COVID 19 circumstance of‐
Indian securities exchange. Upon discovering, he uncovered that preceding to COVID 19,‐
that is, toward the start of January, exchange of both BSE and NSE were at their most
significant levels hitting pinnacles of 12,362 and 42,273, separately showing ideal financial
exchange conditions. After the flare-up of the COVID 19, the securities exchange went‐
under dread as both major stock indices fell by 38%. It prompts a 27.31% loss of the
absolute financial exchange from the start of this current year. The load of a few different
areas like neighborliness, the travel industry, and amusement has been dropped by over
40% because of transport limitations.
Mandal has thoroughly broken down the anguish of the lethal virus on the Indian financial
exchange. Discoveries uncover that BSE has seen the greatest particular day fall of 13.2%‐
which has outperformed the notorious fall of 28 April, 19926. Nifty additionally showed a
unstable jump of 29%, surpassing the catastrophe of 1992.
5Unpredictable event associated with severe consequences
6The stock market scam of 1992

CONCLUSION –
The outcome concludes that the financial exchange particularly the BSE become unstable
all through the pandemic time frame. In the event of an additional stock record, NSE Nifty,
it is observed that there is no such huge effect of the COVID 19-time frame on the‐
instability of NSE costs. The arrival in pre COVID 19 and during the COVID 19-time frame is‐ ‐ ‐
determined independently.
The outcome uncovered that amid depressing mean returns, the stock exchange faces
misfortunes all through the pandemic, though return is revealed optimistic in the pre‐
COVID 19 stage. By evaluation, it is observed that the divergence is enormous all through‐
the COVID 19 phase than the pre COVID 19. furthermore, the cost of the stock indices‐ ‐ ‐
equally shows a huge alteration.
The uncommon pandemic has effectively caused difficulties to all nations. In short, the
outcomes presume that the pandemic has impacted the stock cost and expanded the
instability in the Indian stock exchanges, and influence the financial framework.
To help up the financial exchange legitimate strategy measures should must be embraced
by the public authority. Without some unprecedented strategy support, the emergency
would have been the most noticeably awful.
An infection centered review uncovered that India ought to get ready for a health
foundation emergency as of now and a horrifying economic compression in the upcoming
future, if the government can't execute an appropriate approach structure. After third
March 2020, we see this fall being validated and being substantially faster than anticipated.
For money owing markets, RBI should need to cut the rate. There achieves vulnerability in
the marketplace at the present. So, the monetary backers ought to shift their investment
from a dreary viewpoint to the bright one to adjust their work and stay away from
exposure.
To keep up with comprehensive and maintainable development homegrown arrangements
should be planned. Financial help must be given by the government to the annihilated
required areas.

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