Does the Indian Financial Market Nosedive because of the COVID-19 Outbreak, in Comparison to after Demonetisation and the GST?

By Alok Kumar Mishra, B. N. Rath, Aruna Kumar Dash. Emerging markets finance & trade, 2020

167 citations recorded by the source corpus.

ABSTRACT We investigate the impact of COVID-19 on the Indian financial market and compare it with the outcomes of two recent structural changes of the Indian economy: demonetization and implementation of the Goods and Services Tax (GST). Using daily stock return, net foreign institutional investment, and exchange rate data from January 3, 2003 to April 20, 2020, we find negative stock returns for all the indices during the COVID-19 outbreak, unlike during the post-demonetization and GST phases. Markov switching vector autoregression shows the impact of COVID-19 on stock returns is severe in comparison to that of demonetization and the GST.

Subfields: Economics and Econometrics, Global and Planetary Change

View Paper: https://www.semanticscholar.org/paper/1e043714696a7152ebc00430cd7a316e72c348ba

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In Economics and Econometrics

Citations in the corpus

A Note on the Asian Market Volatility During the COVID-19 Pandemic (2020, background): “Recent studies have shown that the COVID-19 pandemic has significantly affected global economies; see, for instance, Mishra et al. (2020), Salisu & Akanni (2020), Chen et al. (2020), Wang et al. (2020), Yue et al. (2020), Yu et al. (2020), Xiong et al. (2020), Shen et al. (2020), Gu et al. (2020),…”