ISSN

2321-5763 (Online)
0976-495X (Print)


Author(s): Reetika Verma, Rachana Behera

Email(s): reetikaverma20@gmail.com

DOI: 10.52711/2321-5763.2024.00001   

Address: Reetika Verma1, Rachana Behera2
1Research Scholar, Department of Financial Administration, Central University of Punjab, Bathinda, Punjab.
2M.Com Student, Department of Financial Administration, Central University of Punjab, Bathinda, Punjab.
*Corresponding Author

Published In:   Volume - 15,      Issue - 1,     Year - 2024


ABSTRACT:
Purpose- The study aims to investigate the impact of lockdown implementation due to Covid-19 pandemic in India on the returns of 120 companies listed in Bombay Stock Exchange (BSE). Design/ methodology/ approach – Considering lockdown implementation in India as the event and using daily returns data from February 10, 2020 to August 24, 2020 of top 40 large-cap companies, top 40 mid-cap companies and top 40 small-cap companies listed in the Bombay Stock Exchange (BSE), event study methodology was applied in the study. The abnormal returns were determined on the event day and for 1 day, 25 days, 50 days, 90 days and 100 days post the event. The cumulative abnormal returns and buy-hold abnormal returns were computed using estimation window of 30days prior to the event and 30days post the event. Findings – The results reveal that performance of almost all the companies fell down and experienced negative returns after the lockdown implementation in India. No remarkable difference was observed in the risk absorption or the recovery pattern of the small-cap, mid- cap and the large-cap companies. Originality/ value – The paper is the first attempt to examine the differential reaction of the stock returns of BSE listed large-cap, mid-cap and small-cap companies to the lockdown implementation due to Covid-19 in India.


Cite this article:
Reetika Verma, Rachana Behera. Indian Stock Markets’ Reaction to the Nationwide Lockdown due to COVID-19: Evidence from Event Study Analysis. Asian Journal of Management. 2024;15(1):1-8. doi: 10.52711/2321-5763.2024.00001

Cite(Electronic):
Reetika Verma, Rachana Behera. Indian Stock Markets’ Reaction to the Nationwide Lockdown due to COVID-19: Evidence from Event Study Analysis. Asian Journal of Management. 2024;15(1):1-8. doi: 10.52711/2321-5763.2024.00001   Available on: https://ajmjournal.com/AbstractView.aspx?PID=2024-15-1-1


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