HOW COVID-19 AFFECTED THE RETURN OF VARIOUS INDUSTRIES IN INDIA

Finance and Accounting

The world has significantly transformed in just nine months, with facemasks, vaccinations, and medical systems becoming everyday necessities. The Covid-19 epidemic has completely stopped countries from moving, completely changed what "normal" living looks like, and thrown the world economy into one of the worst recessions in recent memory. This shift in focus has had a negative impact on the world economy, and the situation is getting worse due to uncertainty about the future. Indian companies have also been negatively impacted by low customer demand, unstable supply, and lockdown regulations. So, the prime objective of the study is to examine how the pandemic affected various Indian sectors. We used sectoral wise Indices of NSE like Nifty FMCG, Nifty Banking, Nifty IT, Nifty Realty, Nifty Pharma and Nifty Oil & Gas. We applied event study method to test the hypothesis. We found that at the anticipatory period, most of the industries reported negative cumulative abnormal return. But in the event period and adjustment period, most of the stock index returns reported a positive cumulative abnormal return. IT industry stocks price is a very less affected and the Oil & gas industry stock price is the more affected (More volatility in the stock price). Additionally, we noticed that pharmaceutical industry investors are made more profit out of the pandemic.

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