rahav-manoharan / covid_impact_on_sensex

Parts of the econometrics project completed towards fulfilment of requirements for Econometrics for Consultants course, IIMB 2021

Impact of COVID-19 on the Indian Stock Market

..as measured by looking at the performance of a market-weighted index - SENSEX

This repo contains shareable parts of the project completed towards fulfilment of requirements for the Econometrics for Consultants course, IIMB 2021

COVID-19 is known to have affected the global economy with varying degrees of impact in various countries. Although there are many indicators of economic performance, onb of the most reactive and immediate indicators of economic activities in a country is the stock market of that country. It is also for each country's stock market to have 1 or more indices that each have their own properties/constituents.

In this project, we aim to understand the economic impact of COVID-19 by modelling the performance of SENSEX (which is a market-weighted index of the Bombay Stock Exchange). To do this, we first select a functional form and collect data on those variables. We then understand correlation and variable importantce to eliminate unnecessary variables and simplify the functional form of the regression equation.

References:

Gujarati D. Econometrics by Example. Second ed. London: Palgrave Macmillan Education; 2015.

Economic and Political Weekly , Feb. 2-8, 2002, Vol. 37, No. 5, Money, Banking and Finance (Feb. 2-8, 2002), pp. 459-468.

Sahoo M. COVID-19 impact on stock market: Evidence from the Indian stock market. J Public Affairs. 2021;e2621. https://doi.org/10.1002/pa.2621

Ahmed, F.; Syed, A.A.; Kamal, M.A.; de las Nieves López-García, M.; Ramos-Requena, J.P.; Gupta, S. Assessing the Impact of COVID-19 Pandemic on the Stock and Commodity Markets Performance and Sustainability: A Comparative Analysis of South Asian Countries. Sustainability 2021, 13, 5669. https://doi.org/10.3390/su13105669