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Lockdown vs. Opening-Up of the Economy During the COVID-19 Pandemic and the Indian Stock Market

Author

Listed:
  • Pratap Kumar Jena
  • Pramod Kumar Mishra

    (Department of Economics, Maharaja Sriram Chandra Bhanjadeo University, Odisha, India.)

Abstract

This paper examined the impact of the lockdown and opening-up of India during the COVID-19 pandemic on eleven Indian stock market indices. Using an event study methodology, we found that the lockdown has adversely affected financial services and consumer durables. We show the pharmaceutical sectors exploited the pandemic-induced panic and created artificial demand for medicine. Therefore, policy makers need to be vigilant regarding prices of pharmaceutical products during the pandemic.

Suggested Citation

  • Pratap Kumar Jena & Pramod Kumar Mishra, 2022. "Lockdown vs. Opening-Up of the Economy During the COVID-19 Pandemic and the Indian Stock Market," Asian Economics Letters, Asia-Pacific Applied Economics Association, vol. 3(4), pages 1-4.
    • Handle: RePEc:ayb:jrnael:76
    DOI: 2022/11/08
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    References listed on IDEAS

    as
    1. Ichev, Riste & Marinč, Matej, 2018. "Stock prices and geographic proximity of information: Evidence from the Ebola outbreak," International Review of Financial Analysis, Elsevier, vol. 56(C), pages 153-166.
    2. Alok Kumar Mishra & Badri Narayan Rath & Aruna Kumar Dash, 2020. "Does the Indian Financial Market Nosedive because of the COVID-19 Outbreak, in Comparison to after Demonetisation and the GST?," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 56(10), pages 2162-2180, August.
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    Cited by:

    1. Rizvi, Syed Aun R. & Pathirage, Kasun, 2023. "COVID-19 policy actions and inflation targeting in South Asia," Journal of Asian Economics, Elsevier, vol. 84(C).

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    More about this item

    Keywords

    COVID-19; Risk; Financial market; Stock returns; Lockdown; Opening-up;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation

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