Covid19 Impact OnTwelve Sectors Of The Indian Economy

ABSTRACT

This study aims to investigate the reaction of COVID-19 cases (confirmed, deaths, recovered, & active) on twelve sectors of Indian economy by using sectoral indices of national stock exchange. Daily frequency of COVID-19 case categories was obtained from Worldometer from January 30, 2020 to June 30, 2020 and dataset of daily closing prices of twelve sectoral indices (auto, banks, financial services, fast moving consumer goods, information technology, media, metal, oil & gas, pharmaceutical, public sector banks, private banks, realty sector) was obtained from national stock exchange web portal for the same period as of COVID-19. In this study, the ordinary least square regression was used to study the significance of COVID-19 cases (confirmed, deaths, recovered, & active) on twelve sectoral indices. Empirical evidence suggested no significant impact of COVID-19 cases on daily returns of twelve major sectors represented by sectoral indices except in the case of pharmaceutical sector, where daily growth in number of deaths is impacting daily returns on pharmaceutical sectoral index in a positive way. The twelve sectoral indices went into a downward spiral at the beginning of COVID-19 pandemic, but as government and central bank introduced various policy measures, the impact of COVID-19 pandemic on sectoral indices faded away.