Repercussions of COVID-19 on the Indian stock market

A sectoral analysis


  • Dhananjay Ashri Research Scholar, SGTB Khalsa College, University of Delhi, Delhi, India
  • Bibhu Prasad Sahoo Department Head, Department of Business Economics, SGTB Khalsa College, University of Delhi, Delhi, India
  • Ankita Gulati Assistant Professor, Department of Business Economics, SGTB Khalsa College, University of Delhi, Delhi, India
  • Irfan UL Haq Research Scholar, Department of commerce, University of Delhi, Delhi, India


coronavirus, financial markets, lockdown, pandemic, stock market


The present paper determines the repercussions of the coronavirus on the Indian financial markets by taking the eight sectoral indices into account. By taking the sectoral indices into account, the study deduces the impact of virus outbreak on the various sectoral indices of the Indian stock market. Employing Welch's t-test and Non-parametric Mann-Whitney U test, we empirically analysed the daily returns of eight sectoral indices: Nifty Auto, Nifty FMCG, Nifty IT, Nifty Media, Nifty Metal, Nifty Oil and Gas, Nifty Pharma, and Nifty Bank. The results unveiled that pandemic had a negative impact on the automobile, FMCG, pharmaceuticals, and oil and gas sectors in the short run. In the long run, automobile, oil and gas, metals, and the banking sector have suffered enormously. The results further unveiled that no selected indices underperformed the domestic average, except NIFTY Auto. 


Download data is not yet available.


Abadie, A., & Gardeazabal, J. (2003). The economic costs of conflict: A case study of the Basque Country. American economic review, 93(1), 113-132.

Alam, M. N., Alam, M. S., & Chavali, K. (2020). Stock market response during COVID-19 lockdown period in India: An event study. The Journal of Asian Finance, Economics, and Business, 7(7), 131-137.

Albulescu, C. T. (2021). COVID-19 and the United States financial markets’ volatility. Finance Research Letters, 38, 101699.

Ali, S. A., Baloch, M., Ahmed, N., Ali, A. A., & Iqbal, A. (2020). The outbreak of Coronavirus Disease 2019 (COVID-19)—An emerging global health threat. Journal of infection and public health, 13(4), 644-646.

Ashri, D., & Sahoo, B. P. (2021). Reaction of the indian stock market to corona pandemic and lockdown. JIMS8M: The Journal of Indian Management & Strategy, 25(4), 13-22.

Bagliano, F. C., & Morana, C. (2012). The Great Recession: US dynamics and spillovers to the world economy. Journal of Banking & Finance, 36(1), 1-13.

Barrett, J. P., & Goldsmith, L. (1976). When is n sufficiently large?. The American Statistician, 30(2), 67-70.

Baru, R., Acharya, A., Acharya, S., Kumar, A. S., & Nagaraj, K. (2010). Inequities in access to health services in India: caste, class and region. Economic and political Weekly, 49-58.

Bell, C., & Lewis, M. (2005). Economic implications of epidemics old and new. Available at SSRN 997387.

Bentolila, S., Jansen, M., & Jiménez, G. (2018). When credit dries up: Job losses in the great recession. Journal of the European Economic Association, 16(3), 650-695.

Bezemer, D. J. (2011). The credit crisis and recession as a paradigm test. Journal of Economic Issues, 45(1), 1-18.

Chen, A. H., & Siems, T. F. (2004). The effects of terrorism on global capital markets. European journal of political economy, 20(2), 349-366.

Chen, M. H., Jang, S. S., & Kim, W. G. (2007). The impact of the SARS outbreak on Taiwanese hotel stock performance: an event-study approach. International Journal of Hospitality Management, 26(1), 200-212.

Dev, S. M., & Sengupta, R. (2020). COVID-19: Impact on the Indian economy (IGIDR Working Paper No. 2020-013). Indira Gandhi Institute of Development Research, Mumbai, India.

Fernandes, N. (2020). Economic effects of coronavirus outbreak (COVID-19) on the world economy. Available at SSRN 3557504.

Ghosh, A., Arora, B., Gupta, R., Anoop, S., & Misra, A. (2020). Effects of nationwide lockdown during COVID-19 epidemic on lifestyle and other medical issues of patients with type 2 diabetes in north India. Diabetes & Metabolic Syndrome: Clinical Research & Reviews, 14(5), 917-920.

Gupta, N., Sharma, M., Rastogi, M., Chauhan, A., Jain, V., & Yadav, P. K. (2021). Impact of COVID-19 on education sector in Uttarakhand: Exploratory factor analysis. Linguistics and Culture Review, 5(S3), 784-793.

Hai, W., Zhao, Z., Wang, J., & Hou, Z. G. (2004). The short-term impact of SARS on the Chinese economy. Asian Economic Papers, 3(1), 57-61.

Hassan, T. A., Hollander, S., Van Lent, L., & Tahoun, A. (2020). Firm-level exposure to epidemic diseases: COVID-19, SARS. and h1n1. Working Paper 26971, National Bureau of Economic Research.

He, Q., Liu, J., Wang, S., & Yu, J. (2020). The impact of COVID-19 on stock markets. Economic and Political Studies, 8(3), 275-288.

Herwany, A., Febrian, E., Anwar, M., & Gunardi, A. (2021). The influence of the COVID-19 pandemic on stock market returns in Indonesia stock exchange. The Journal of Asian Finance, Economics and Business, 8(3), 39-47.

Ibarra-Vega, D. (2020). Lockdown, one, two, none, or smart. Modeling containing covid-19 infection. A conceptual model. Science of the Total Environment, 730, 138917.

Jagannathan, R., Kapoor, M., & Schaumburg, E. (2013). Causes of the great recession of 2007–2009: The financial crisis was the symptom not the disease!. Journal of Financial Intermediation, 22(1), 4-29.

Jonung, L., & Roeger, W. (2006). The macroeconomic effects of a pandemic in Europe-A model-based assessment. Available at SSRN 920851.

Kanca, I. N., Ginaya, G., & Sri Astuti, N. N. (2020). The effectiveness of the problem solving method on learning outcomes of the English course for room division operation during the COVID-19 pandemic. International Journal of Linguistics, Literature and Culture, 7(1), 12-22.

Khanthavit, A. (2021). Measuring COVID-19 effects on world and national stock market returns. The Journal of Asian Finance, Economics, and Business, 8(2), 1-13.

Kumar, R. (2009). Global financial and economic crisis: Impact on India and policy response. United Nations Development Programme.

Kumar, V. (2020). Indian tourism industry and COVID-19: present scenario. Journal of Tourism and Hospitality Education, 10, 179-185.

Kustina, K.T., Dewi, G.A.A.O., Prena, G.D., Suryasa, W. (2019). Branchless banking, third-party funds, and profitability evidence reference to banking sector in indonesia. Journal of Advanced Research in Dynamical and Control Systems, 11(2), 290-299.

Lee, J. W., & McKibbin, W. J. (2004). Globalization and disease: The case of SARS. Asian Economic Papers, 3(1), 113-131.

Lima, C. K. T., de Medeiros Carvalho, P. M., Lima, I. D. A. A. S., de Oliveira Nunes, J. V. A., Saraiva, J. S., de Souza, R. I., ... & Neto, M. L. R. (2020). The emotional impact of Coronavirus 2019-nCoV (new Coronavirus disease). Psychiatry research, 287, 112915.

Liu, H., Manzoor, A., Wang, C., Zhang, L., & Manzoor, Z. (2020). The COVID-19 outbreak and affected countries stock markets response. International Journal of Environmental Research and Public Health, 17(8), 2800.

McKibbin, W., & Fernando, R. (2021). The global macroeconomic impacts of COVID-19: Seven scenarios. Asian Economic Papers, 20(2), 1-30.

McKnight, P. E., & Najab, J. (2010). Mann-Whitney U Test. The Corsini Encyclopedia of Psychology, 1–1.

Mian, A., & Sufi, A. (2010). The great recession: Lessons from microeconomic data. American Economic Review, 100(2), 51-56.

Nachane, D. M., & Islam, M. S. (2012). Post?crisis South Asia: monetary management and macro?prudential regulation. South Asian Journal of Global Business Research.

Nachar, N. (2008). The Mann-Whitney U: A test for assessing whether two independent samples come from the same distribution. Tutorials in quantitative Methods for Psychology, 4(1), 13-20.

Nippani*, S., & Washer, K. M. (2004). SARS: a non-event for affected countries’ stock markets?. Applied Financial Economics, 14(15), 1105-1110.

Ozili, P. K., & Arun, T. (2020). Spillover of COVID-19: impact on the Global Economy. Available at SSRN 3562570.

Rahayu, I. S., Karana, I. ., Hardiansyah, M. A., Dewi, D. H., & Elihami, E. (2021). The relationship of online game addiction with learning motivation in school age children on COVID-19 pandemic. Linguistics and Culture Review, 5(1), 384-396.

Ramelli, S., & Wagner, A. F. (2020). Feverish stock price reactions to COVID-19. The Review of Corporate Finance Studies, 9(3), 622-655.

Ramskogler, P. (2015). Tracing the origins of the financial crisis. OECD Journal: Financial Market Trends, 2014(2), 47-61.

Ray, D., & Subramanian, S. (2020). India’s lockdown: An interim report. Indian Economic Review, 55(1), 31-79.

Reinhart, C. M., & Rogoff, K. S. (2009). The aftermath of financial crises. American Economic Review, 99(2), 466-72.

Romdhani, M. (2020). Reading William Faulkner’s Yoknapatawpha in the COVID-19 era: Face masking, lockdown and free bodies. International Journal of Linguistics, Literature and Culture, 7(1), 1-11.

Ruxton, G. D. (2006). The unequal variance t-test is an underused alternative to Student's t-test and the Mann–Whitney U test. Behavioral Ecology, 17(4), 688-690.

Smith, R. D. (2006). Responding to global infectious disease outbreaks: lessons from SARS on the role of risk perception, communication and management. Social science & medicine, 63(12), 3113-3123.

Stiglitz, J. E. (2010). Interpreting the Causes of the Great Recession of 2008. Financial system and macroeconomic resilience: revisited, 53, 297-361.

Sumner, A., Hoy, C., & Ortiz-Juarez, E. (2020). Estimates of the Impact of COVID-19 on Global Poverty (No. 2020/43). WIDER working paper.

Zainuri, Z., Viphindrartin, S., & Wilantari, R. N. (2021). The impacts of the COVID-19 pandemic on the movement of composite stock price index in Indonesia. The Journal of Asian Finance, Economics and Business, 8(3), 1113-1119.

Zhang, D., Hu, M., & Ji, Q. (2020). Financial markets under the global pandemic of COVID-19. Finance Research Letters, 36, 101528.



How to Cite

Ashri, D., Sahoo, B. P., Gulati, A., & Haq, I. U. (2021). Repercussions of COVID-19 on the Indian stock market: A sectoral analysis. Linguistics and Culture Review, 5(S1), 1495-1509.



Research Articles

Most read articles by the same author(s)