COVID-19 Impact on Major Stock Markets

Gupta, Hemendra; Chaudhary, Rashmi; Gupta, Suneel

doi:10.1177/2319714521994514

Cited by 7 publications

(6 citation statements)

References 27 publications

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“…So, this study is focused on reviewing the significant insights on the distinctive sectors of the Indian stock market during the pandemic, based on the various studies. COVID-19 has a relative impact in the short-term and, after an initial setback, it has recovered fast (Gupta et al, 2021). With this, it is also suggested that the deep learning model Long Short-Term Memory (LSTM) has a more precise prediction of the Indian stock market (Sharma et al, 2021), which can be used for predicting the stock market movement for better investment.…”

Section: Discussionmentioning

confidence: 99%

The Indian Stock Market during COVID-19: A Review

2022

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The COVID-19 outbreak shocked the entire global economy and intensified the financial crisis. India is the fastest emerging economy that is severely affected by this pandemic scenario. The performance of the stock market is a reflection of the economic condition and growth of a country. The impact of COVID-19 on distinctive sectors of the Indian stock market is presented in this study, which intends to review various studies and provide significant insights on distinctive sectors of the Indian stock market during COVID-19. This study will help investors and stock brokers with managing and improving their portfolios of stock market investments as well as overcome the hurdles posed by the pandemic.

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Section: Discussionmentioning

confidence: 99%

The Indian Stock Market during COVID-19: A Review

2022

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“…Japan's Nikkei 225 also saw large declines early on in the pandemic but has also since recovered, driven by government stimulus and relatively quick control of the pandemic within those countries (Li et al 2022). Similarly, the study by Gupta et al (2022) in the 20 largest economies' stock markets showed that at the end of April 2020, stock market indices had recovered, with 9 out of 20 stock market indices showing improvement, particularly the Canadian, Russian, Saudi Arabian, and US markets. Meanwhile, the Indian and Indonesian stock markets were still trending downward.…”

Section: )mentioning

confidence: 99%

Stock Market Performance during COVID-19 Pandemic: A Systematic Literature Review

FITRIANA,

SAPUTRA,

HALIM

2023

Theor. Pract. Res. Econom. Fields

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This study provides a comprehensive review using a systematic database to comprehend the pragmatic studies that examine the stock market performance during the COVID-19 pandemic. This study systematically searches and synthezises the results of stock market performance during COVID-19 to provide an overview of the current state of knowledge. The objectives of this study are (1) to investigate the impact of COVID-19 on stock market performance, (2) to analyse the reaction of the stock market during a pandemic, and (3) to identify the perspective and gaps for future research. This study employs a Systematic Literature Review (SLR) approach and follows the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) guidelines. The databases used are Scopus and Web of Science (WoS), covering a period of 2020 to 2023. The articles were identified using specific keywords and were screened based on predefined criteria. A total of 57 articles were included in this study for review. This study examined the impact of the COVID-19 pandemic on stock market returns and volatility. Also, the study examines the interconnectedness between global stock markets. In addition, it explored the potential of government response to mitigate the pandemic's effect on the stock market. The study found that the initial impact was felt in the short term and negatively impacted investor sentiment, but the stock markets began to stabilise and recover over time. The study's findings suggest that future research should not only concentrate on the short-term impact and correlation between the stock market and the pandemic but also their long-term impact.

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“…Their study also indicated that the panic caused by the uncertainties led to a severe drop in investor confidence, resulted in a nose-dive response in the global stock market. Gupta et al ( 2021 ) strengthened the claim that the COVID-19 pandemic has negatively impacted all major stock markets in the short term. According to Reuters ( 2021 ), the monthly returns for major indices, including Dow Jones, FTSE 100, Euro Stoxx 50, Shanghai and ASX 200 in Fig.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of government interventions on the stock market during COVID-19: a case study in Indonesia

Sinaga

Chen

2022

SN Bus Econ

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This paper aims to examine the short-term impact of government interventions on 11 industrial sectors in the Indonesian Stock Exchange (IDX) during the COVID-19 pandemic. Whereas earlier studies have widely investigated the impact of government interventions on the financial markets during the pandemic, there is lack of research on analysing the financial impacts of various interventions in different industrial sectors, particularly in Indonesia. In this research, five key types of government interventions are selected amid the pandemic from March 2020 to July 2021, including economic stimulus packages, jobs creation law, Jakarta lockdowns, Ramadan travel restrictions, and free vaccination campaign. Based on an event study methodology, the research reveals that the first economic stimulus package was critical in reviving most sectors following the announcement of the first COVID-19 case in Indonesia. Jakarta lockdowns impacted stock returns negatively in most sectors, but the impacts were relatively insignificant in comparison to other countries in the region. The recurrence of lockdowns in Jakarta had a minor detrimental impact, showing that the market had acclimated to the new normal caused by the COVID-19 pandemic. Additionally, Ramadan travel restrictions caused minor negative impacts on the stock market. Furthermore, the second Ramadan travel restrictions generated a significant reaction from the technology sector. Finally, while free vaccination campaign and job creation law did not significantly boost the stock market, both are believed to result in a positive long-term effect on the country’s economy if appropriately executed. The findings are critical for investors, private companies, and governments to build on recovery action plans for major industrial sectors, allowing the stock market to bounce back quickly and efficiently. As this study limits its analysis to the short-term impact of individual interventions, future studies can examine long-term and combined effects of interventions which could also help policy makers to form effective portfolios of interventions in the event of a pandemic.

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COVID-19 Impact on Major Stock Markets

Cited by 7 publications

References 27 publications

The Indian Stock Market during COVID-19: A Review

The Indian Stock Market during COVID-19: A Review

Stock Market Performance during COVID-19 Pandemic: A Systematic Literature Review

Impact of government interventions on the stock market during COVID-19: a case study in Indonesia

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