Efficient Market Hypothesis During T he Time of COVID
Gayathri P Pillai1, Arjun Pillai2
1Gayathri P Pillai*, Final year B.COM International Finance Student, Department of Professional Studies, Christ (Deemed to be University), Bengaluru (Karnataka), India.
2Arjun Pillai, Final year B.COM International Finance Student, Department of Professional Studies, Christ (Deemed to be University), Bengaluru (Karnataka), India.
Manuscript received on April 12, 2021. | Revised Manuscript received on April 28, 2021. | Manuscript published on May 30, 2021. | PP: 21-29 | Volume-10 Issue-1, May 2021. | Retrieval Number: 100.1/ijrte.A56670510121 | DOI: 10.35940/ijrte.A5667.0510121
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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: This paper examines the efficiency of the Indian Stock Markets (NSE) during the time of COVID. It demonstrates the impact on the market on the announcement of two major events that is the declaration of COVID as a Public Health Emergency Of International Concern (PHEIC) on 30th January 2019 and the day when Prime Minister Narendera Modi declared first lockdown in India, 24th March 2019. The study uses the Event Study methodology to determine the efficiency of the markets. The study found that the markets were in fact inefficient during the period under study and that there were numerous opportunities to make abnormal profits. The study also conducted a sector wise comparison to analyze the impact of the above mentioned events and found a major difference in the way each sector was affected by the news, indicating different levels of efficiency in the semi strong form of market. The results of this research helps one to understand investor behavior and biases and the different opportunities one could make use of, in order to make abnormal profits.
Keywords: COVID, (PHEIC), (NSE).