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The purpose of this study explores the impact of the COVID-19 pandemic on the stock prices in Indian markets. With a first-hand analysis of the economic situation and an appreciation of structural risk trends in financial markets,we attempt to explain the liquidity and volatility during the different announcement of lockdown and tries to capture multiple dimensions of the pandemic across three important sectors. The study also tried to gauge the anxiety and psyche of Indian investors in such a turbulent time and impacted on country’s present economic crisis and our results suggest that increases in confirmed cases and deaths due to coronavirus are associated with significant changes in market illiquidity and volatility.
Similarly, declining sentiment and the implementations of restrictions and lockdowns contribute to the deterioration of the liquidity and stability of markets.
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