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Sectoral performance of Indian stock market during 1st and 2nd wave of COVID-19 pandemic: an event study analysis

Vishwas Gupta (Assistant Professor at SCMS, Symbiosis (International) University, Noida, India)
Pinky Agarwal (ITM-Business School Navi Mumbai, Navi Mumbai, India and Associate Professor at NL Dalmia Institute of Management Studies and Research, Mumbai, India)

Journal of Asia Business Studies

ISSN: 1558-7894

Article publication date: 10 June 2024




Capital markets are the backbone of an economy. COVID-19 has created an unacceptable and unpredictable economic environment worldwide, resulting in a significant setback for securities exchanges. India also experienced two waves of this pandemic, which led to a significant downturn in the capital market.


Researchers have endeavored to study the impact of the first and second waves of COVID-19 on the performance of various sectoral stocks in India. The performance of selected sectoral indices of the Bombay Stock Exchange was compared with the market performance of the S&P BSE 100. An event study was conducted to analyze the normal return, abnormal return (A.R.), and t-statistics of A.R. for various sectoral stocks. In addition, the abnormal returns of sectoral stocks between the first and second waves of COVID-19 in India were compared


The results of the tests showed heterogeneous A.R. between different sectors in both the first and second waves of COVID-19 in India. Positive investor outlook and government financial support programs for various sectors helped them recover from the second wave of COVID-19.

Research limitations/implications

The study analyzed the impact of the peak of the first and second waves of COVID-19 on selected sectoral indices. There may be several reasons for the performance of this particular stock index. However, we have tried to analyze the best possible reasons for this turbulence in the performance of stocks of selected sectoral indices. The study can be further analyzed to examine the long-term impact of such a pandemic on other sectors.


The study is based on the panic behavior of investors during such a pandemic. No one was prepared for this and expected this pandemic to last this long. This pandemic has taught so many lessons to everyone involved. Investors need to be prepared and cautious for such unforeseen disasters before making any investment decision. They need to analyze which industry can survive under such circumstances, and then they should invest there. Industries and enterprises must adapt and improve by honestly looking at their weaknesses and trying to meet investors' expectations.



The authors are thankful to all three reviewers. Their suggestions and guidance have transformed the work in a positive direction only. All usual disclaimers apply.


Gupta, V. and Agarwal, P. (2024), "Sectoral performance of Indian stock market during 1st and 2nd wave of COVID-19 pandemic: an event study analysis", Journal of Asia Business Studies, Vol. ahead-of-print No. ahead-of-print.



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