Analysis of Impact Of Covid-19 On The Economic Factors And Stock Market Sectors

Abstract

The lockdown restrictions imposed to control the spread of COVID-19 affected the economic growth very badly. This study investigates the financial impact of COVID-19 on 2 parameters economic factors and market volatility of stock market indices. For economic factors, we analyzed how COVID-19 daily cases affect GDP percentage change quarterly, Import and Export of 10 different countries. While, for the stock market, we studied market volatility of 10 different Nifty sector indices. We used GARCH (1,1) volatility for predicting market volatility from the closing price of indices. We tried to study how daily COVID-19 cases impacted volatility of different sectors before and after the Indian COVID-19 Vaccination drive. Our main finding is that among all countries in our analysis, India had the highest GDP percentage Quarterly change in both positive and negative ways and volatility of market indices stabilized after COVID-19 Vaccination started in India. We also found that the healthcare sector was least affected by pandemic in terms of market volatility while Bank and Financial services sectors were most affected by pandemic. Our Analysis results also show that COVID-19 cases impacted the economic factors of the country like Export, Import and G.D.P and some stock market sectors were more volatile in comparison to other markets. We have tried to cover different economic metrics G.D.P Percentage Quarter change, Export, Import and market volatility in a single paper. The study covers 10 countries and 10 NIFTY market sectors. The study helped us to understand most and least volatile sectors of markets.