The performance of the Indian stock market during COVID-19
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Author(s)Rashmi ChaudharyLink to ORCID Index: https://orcid.org/0000-0001-8131-4236
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Priti BakhshiLink to ORCID Index: https://orcid.org/0000-0002-3869-2810
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Hemendra Gupta
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DOIhttp://dx.doi.org/10.21511/imfi.17(3).2020.11
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Article InfoVolume 17 2020, Issue #3, pp. 133-147
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Creative Commons Attribution 4.0 International License
The current empirical study attempts to analyze the impact of COVID-19 on the performance of the Indian stock market concerning two composite indices (BSE 500 and BSE Sensex) and eight sectoral indices of Bombay Stock Exchange (BSE) (Auto, Bankex, Consumer Durables, Capital Goods, Fast Moving Consumer Goods, Health Care, Information Technology, and Realty) of India, and compare the composite indices of India with three global indexes S&P 500, Nikkei 225, and FTSE 100. The daily data from January 2019 to May 2020 have been considered in this study. GLS regression has been applied to assess the impact of COVID-19 on the multiple measures of volatility, namely standard deviation, skewness, and kurtosis of all indices. All indices’ key findings show lower mean daily return than specific, negative returns in the crisis period compared to the pre-crisis period. The standard deviation of all the indices has gone up, the skewness has become negative, and the kurtosis values are exceptionally large. The relation between indices has increased during the crisis period. The Indian stock market depicts roughly the same standard deviation as the global markets but has higher negative skewness and higher positive kurtosis of returns, making the market seem more volatile.
- Keywords
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JEL Classification (Paper profile tab)G10, G11, G12, G14
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References31
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Tables7
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Figures21
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- Figure 1. Frequency and normal distribution of stock returns during the crisis period and the pre-crisis period
- Figure 1(a). BSE 500 (August – December 2019)
- Figure 1(b). BSE Sensex (August – December 2019)
- Figure 1(c). BSE Automobiles (August – December 2019)
- Figure 1(d). BSE Bankex (August – December 2019)
- Figure 1(e). BSE Consumer Durables (August –December 2019)
- Figure 1(f). BSE Capital Goods (August – December 2019)
- Figure 1(g). BSE Fast Moving Consumer Goods (August – December 2019)
- Figure 1(h). BSE Health Care (August – December 2019)
- Figure 1(i). BSE Information Technology (August –December 2019)
- Figure 1(j). BSE Realty (August – December 2019)
- Figure 1(k). BSE 500 (January – May 2020)
- Figure 1(l). BSE Sensex (January – May 2020)
- Figure 1(m). BSE Automobiles (January – May 2020)
- Figure 1(n). BSE Bankex (January – May 2020)
- Figure 1(o). BSE Consumer Durables (January –May 2020)
- Figure 1(p). BSE Capital Goods (January –May 2020)
- Figure 1(q). BSE Fast Moving Consumer Goods (January – May 2020)
- Figure 1(r). BSE Health Care (January – May 2020)
- Figure 1(s). BSE Information Technology (January –May 2020)
- Figure 1(t). BSE Realty (January – May 2020)
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- Table 1. Descriptive statistics
- Table 2. Highlights of periodic returns
- Table 3. Correlation matrix
- Table 4. Regression analysis: model 1 – for COVID-19 and standard deviation of the index returns
- Table 5. Regression analysis: model 2 – for COVID-19 and skewness of the index returns
- Table 6. Regression analysis: model 3 – for COVID-19 and kurtosis of the index returns
- Table 7. Regression analysis – comparing BSE 500 with global market indices (Model 1 – Model 3)
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Starbucks coffee corporation’s marketing response to the COVID-19 pandemic
Conner V. Lombardi ,
Neejad T. Chidiac ,
Benjamin C. Record
doi: http://dx.doi.org/10.21511/im.17(2).2021.16
Innovative Marketing Volume 17, 2021 Issue #2 pp. 177-188 Views: 16619 Downloads: 15338 TO CITE АНОТАЦІЯThe ongoing COVID-19 pandemic has a significant influence on businesses and marketing strategies across the globe, including Starbucks Coffee. The COVID-19 pandemic has been completely novel in its unprecedented impact on the modern globalized economy. This in-depth analysis of this coffeehouse provides recommendations that were carefully considered within the context of the current public health crisis. The objective of this study was to systematically analyze the strategic marketing approach of Starbucks Coffee to generate recommendations that can not only be applied to Starbucks but marketing endeavors more broadly. A comprehensive review approach was adopted beginning with a thorough situational analysis. Problems and opportunities related to the marketing of Starbucks Coffee were investigated and recommendations were generated. All stages of the study were robustly supported with relevant citations. Starbucks has matrixed a complex corporate structure that supports not only its survival but its continued development even in an increasingly dense and competitive marketplace. While Starbucks must continue to intermittently reevaluate its key problems and key opportunities, especially in the approaching few financial years, the company is operating with impressive effectiveness through the adversities of 2020 thus far. After a careful analysis, Starbucks Coffee should increase the distribution of products that are more likely to succeed during the COVID-19 pandemic, expand pick-up and delivery services, implement additional store locations in underdeveloped geographic market segments, and utilize its vast array of promotional mediums to optimize brand positioning as they approach a reopening world.
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Impact of teleworking on job satisfaction among Slovakian employees in the era of COVID-19
Peter Karácsony
doi: http://dx.doi.org/10.21511/ppm.19(3).2021.01
Problems and Perspectives in Management Volume 19, 2021 Issue #3 pp. 1-9 Views: 3820 Downloads: 1225 TO CITE АНОТАЦІЯThe COVID-19 pandemic, which became a global crisis in 2020, has radically transformed people’s normal lives in a matter of weeks. In addition to the health consequences, the virus has had a significant impact on the society and the economy, including the labor market. The present study aims to assess how traditional working has been transformed into teleworking in Slovakia. The study examines whether Slovakian workers are satisfied with teleworking. The questionnaire survey was conducted in December 2020 during the second wave of the coronavirus in Slovakia. Based on the obtained results, a significant relationship between teleworking satisfaction and salary satisfaction, supervisory support, and job autonomy was found. Based on the obtained results, teleworking introduced due to the coronavirus had a clear positive effect on job satisfaction of the examined Slovakian employees. As a result of teleworking, the relationship between manager and subordinate has improved, and work-life balance has also developed favorably.
Acknowledgments
This study was funded by the Pallas Athéné Foundations. -
Selection of the right proxy market portfolio for CAPM
Rashmi Chaudhary ,
Priti Bakhshi
doi: http://dx.doi.org/10.21511/imfi.18(3).2021.02
Investment Management and Financial Innovations Volume 18, 2021 Issue #3 pp. 16-26 Views: 3142 Downloads: 1550 TO CITE АНОТАЦІЯThe purpose of the paper is to select the right market proxy for calculating the expected return, since critically evaluating proxies or selecting the correct proxy market portfolio is essential for portfolio management because the change in the market portfolio proxy affects returns. In this study, monthly data of equity indices are evaluated to find out the better market proxy. The indices taken are BSE 30 (Sensex), Nifty 50, BSE 100, BSE 200, and BSE 500. The macroeconomic variables used in the study are industrial production index (IIP), consumer price index (CPI), money supply (M1), and exchange rate in India. To avoid the influence of COVID-19, the research period was from January 2013 to December 2019 to critically evaluate these proxies in order to find the most appropriate market proxy. This paper reveals a noteworthy relationship between stock market returns and macroeconomic factors, while suggesting that the BSE 500 is a better choice for all equity indices, as the index also shows a significant relationship with all macroeconomic variables. BSE500 is a composite index comprising all sectors with low, mid and large cap securities, therefore it reflects the impact of macroeconomic factors most efficiently, taking it as a market proxy. This study was carried out in the context of India and can be replicated for other countries.
