PROJECT REPORT ON

IMPACT OF COVID-19 ON INDIAN STOCK

MARKET

SUBMITTED IN PARTIAL FULFILLENT OF THE REQUIREMENT FOR THE

AWARD OF B.COM (HONS) (BATCH 2021-2023)
SUBMITTED BY:
Feroze Ahmad Lone
REGISTRATION NO: 20028
SUPERVISED BY:
Ms.Rajveer Kaur

Designation : Department Of Commerce And Management

SANT BABA BHAG SINGH UNIVERSITY

Village : Khiala, PO : Padhiana , District : Jalandhar

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 CERTIFICATE (by the Guide)

I have the pleasure in certifying that Feroze Ahmed Lone is a bonafide student of 5th semester
of the bachelors degree in B.COM (HONS) of Sant Baba Bhag Singh University . He has
completed his project work entitled training and development under my guidance. I certify that
this is his original effort & has not been copied from any other source. This project fulfils the
requirement of the curriculum prescribed by this university for the said course. I recommend this
project work for evaluation & consideration for the award of degree to the student.

Name of the guide : Ms. Rajveer Kaur

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 DECLARATION

I hereby declare that, the project report entitled “Training & Development” is original and one
has been carried out by SANT BABA BHAG SINGH UNIVERSITY submitted for partial
fulfillment of the requirement for the award of degree of “BACHELORS OF COMMERCE for
the academic’s year 2021-2023. I also declare that this project is result of my own efforts and has
not been submitted to any other University for any other Degree.

FEROZE AHMED LONE

3
 ACKNOWLEDGEMENT

First of all, I am grateful to God who gives me sound mind and sound health to accomplish my
project report on time. It is my immense pleasure to have the opportunity for the preparation of
this project. I am highly obliged by SANT BABA BHAG SINGH UNIVERSITY, for giving
me the opportunity to prepare a project report on IMPACT OF COVID-19 ON INDIAN
STOCK MARKET. I would also like to express my profound gratitude to my faculty guide MS
.RAJVEER KAUR for his constructive support during the completion of project report.

FEROZE AHMED LONE

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5
 ABSTRACT

Securities exchange is one of the most adaptable parts in the budgetary framework of a
country, and stock market assumes a significant job in economic advancement. Securities
exchange is a center point where facilities are given to the speculators to buy and sell their
shares, bonds and debenture and so forth. In stock market different organizations are inclined
to their undertaking through public issues Bombay Stock Exchange (BSE), the National Stock
Exchange (NSE) and the Calcutta Stock Exchange (CSE) are the recorded stock market in
India. These three are biggest Indian Stock Market. But now Indian economy is facing a
problem i.e. Coronavirus. Coronavirus (COVID-19) are an enormous group of infections that
can cause sicknesses running generally in seriousness. Its 1st case was recorded in Wuhan
city, China. After that the disease spreads around the world and on 21st January 2020, India
records its first case of COVID19. This virus has drastically affected the world's economy.
Before corona virus phase, average NSE index nifty 50 was near to 12000 points and BSE
SENSEX was around 41000 points. But from 21st January to 31st march, NIFTY 50 and
SENSEX were massively down by 31.954% and 31.1769% respectively.

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TITLE- IMPACT OF COVID-19 ON INDIAN STOCK MARKET

Author
MOHIT SHARMA

7
 CHAPTER 1
INTRODUCTION

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 INTRODUCTION
The sentiment in the stock markets across the world is gloomy. This is reflected in the frequent
risks to the stock market in all parts of the world. Financial markets in India are currently
experiencing significant volatility due to declining global markets. The fall is in line with global
equity indicators as the domestic market tends to follow major global indicators and high
volatility is likely to continue soon. In addition, even overseas investors (FPIs) flight to the
security of dollar-funded assets in emerging markets has led to a major collapse in the Indian
Stock Market. S&P BSE Sensex which was 42273 points on January 20, 2020 points 29894
points on 08 April, 2020. The price to Earnings Ratio of Sensex is less than 18 (P/e is 17.81 on
31March, 2020) which is far less than the historical range between 20-24. Markets across large,
mid, and small caps have corrected sharply from their peaks. In the FY20 the mid-cap index fell
by 26 per cent while the Sensex fell by 22 per cent.

COVID-19 is a black swan event

Throughout history, there have been shocking events that almost invalidated almost everyone
and could have a devastating effect on human society by disrupting human activities and
resorting to violence. Such events are called black swans. The name is based on the fact that until
1697, mankind believed that all swans were white. Then Dutch explorers spotted black swans for
the first time in Western Australia, completely dispelling the notion that swans could only be
white. Thus, the word ‘black swan’ was changed to describe the event that took place even
though it seemed impossible. Black swan is the occurrence of an unexpected event that also has a
huge impact. The field of finance regularly attempts to capture outlier events and fails with equal
regularity. Impact of novel coronavirus (COVID-19) on the stock market is one such event,
which has all characteristics of black swan.

The Stock Market has a history of crash and recovery

The worldwide Stock market has a history of crash and recovery and the Indian Stock Market is
no different from that. Sensex dropped 53 percent in one year on the "Harshad Mehta Scam"
(1992) but also gained 127 percent in 1.5 years. During the "Asia Crisis" (1996) Sensex sank 40
percent in four years but also gained 115 percent in one year. During the “Tech Bubble” (2000)
Sensex hit 56 percent in 1.5 years but also gained 138 percent in 2.5 years. When the US faced
the “Real Estate-Lehman” (2008) crisis Sensex crashed 61 percent a year but gained 157
percent in 1.5 years. The current market has hit about 30 percent in less than three months. Due
to COVID-19, no one knows when the economy will be back on track. Some experts even
compare this melting point with the “Great Depression” of the 20th century. The “Great
Depression” began in 1929 and lasted until the late 1930's. Between 1929 and 1932, the global
Gross Domestic Product (GDP) fell by about 15 percent. By comparison, global GDP fell by less
than 1 percent from 2008 to 2009 during the Great Depression.
The bounce back to pre-COVID levels has left many investors in ambiguity. This piece is not
about predicting what will happen to the markets going forward rather it talks about what could
be a possible explanation to the path markets followed during the announcement of lockdown in
India. Almost all of us would agree that the Indian economy has never experienced such a

9
massive shock- to both demand and supply in its recent past. The world of 2020 is in uncharted
waters.
Below is some analysis on the daily movement of BSE Sensex for past 10 years. The analysis is
based on the number of days the index gained or lost 1 per cent or more.

This clearly shows how 2020 stands as an outlier when compared to 2011-2019, with
approximately six months to go from here. 2020 stands tall among all these years with roughly
having a 1 per cent or more gain/loss every second trading day.

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If we look at this analysis from historical data. The above line represents the ratio of days the
index gained 1 per cent or more to days when it lost 1 per cent or more. At 1.32, it is almost
equal to the highest value which was 1.33 back in 2017. The line below depicts the index return
for that year. There is a sharp divergence in 2020 as shown by the data. With a gain to loss ratio
of 1.33, 2017 closed with a gain of 28 per cent but 2020, with a ratio of 1.32 has a return of -9

per cent so far till July 22nd, 2020. This means, the change in index in 2020 is skewed towards
bigger negative values.
Of the 13 times that Sensex lost 2.5 percent or more by 2020, seven came in March. While it is
worth comparing the Spanish flu pandemic of 1918 with COVID-19 for medical reasons, no
such event exists to compare COVID-19 with its impact on the Indian financial markets.
Although the death toll for COVID-19 is small compared to the Spanish flu, the implications for
economy are far more severe.
5 sectors that are worst hit
Aviation, retail, financials, realty and automobiles are the five sectors that are at the front among
the sectors that are smarting under severe pain now. Aviation is the worst-hit sector, with both
international and domestic flights cancelled on account of lockdown.
Financials
With the COVID-19 pandemic leading to lower GDP growth for FY2021, the risk of a
precipitous fall in loan growth is getting stronger.

Besides, there is a fear that the banks and NBFCs may see a rise in NPAs as COVID-19 has hit
businesses strongly as several small and medium-scale industries are on the cusp of collapsing.

11
"Loan growth demand is likely to be led by negative outcomes such as worsening working
capital cycles, moratoriums or restructuring or slower pre-payments," said Oza of Kotak
Securities.

CHAPTER 2
REVIEW OF LITERATURE

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 REVIEW OF LITERATURE
The impact of COVID-19 on the financial market as well as the stock market has been subject to
many empirical studies both in advanced and emerging economies. Existing literature found
diverse results in these regards. Ozili and Arun (2020) have conducted an empirical study on the
effect of social distancing policy that was adopted to prevent the spread of the Corona Virus,
based on four continents: North America, Africa, Asia, and Europe. The study found that 30 days
of social distancing policy or lockdown hurts the economy through its negative impact on stock
prices. Azimili (2020) also researched on understanding the impact of coronavirus on the degree
and structure of risk-return dependence in the US by using quantile regression. The results
indicate that following the COVID-19 outbreak the degree of dependence between returns and
market portfolio has raised in the higher quantiles that lowering the benefits of diversification.
The author also studied the GSIC and stock return relationship and found that the GSIC return
relationship revealed an asymmetric pattern, lower tails influenced negatively almost twice as
compared to the upper tails. Shezad et al. (2020) conducted a study to analyze the nonlinear
behavior of the financial market of the US, Italy, Japan, and China market return by applying the
Asymmetric Power GARCH model. The study confirmed that COVID-19 harm the stock returns
of the S&P 500. However, it revealed an inconsequential impact on the Nasdaq Composite
index. An empirical study conducted by Cepoi (2020) on the relationship between COVID-19
related news and stock market returns across the topmost affected countries. By employing a
panel quantile regression this study found that the stock market presents asymmetry dependence
on COVID-19 related information. Osagie et al. (2020) by applying Quadratic GARCH and
Exponential GARCH models with dummy variables found that the COVID-19 hurts the stock
returns in Nigeria and recommended that a stable political environment, incentive to indigenous
companies, diversification of economy, flexible exchange rate regime be implemented to
improve the financial market. Becker (2020), in his study, found that there is a dramatic fall in
oil prices by 70-80 percent. It is severe than the financial crisis of 2008/09. This is a serious issue
for the economy as the country is highly dependent on oil revenue. There is a huge gap between
the depreciated exchange rate i.e. 20 percent and the fall in oil prices i.e. 70 80 percent.
According to Herfero (2020), the third wave of the COVID-19 pandemic has hit the emerging
economy worst resulting decrease in the business activities. This unprecedented shock increases
the risk-averse nature which increases the financial cost. Latin America is affected worst because
of her much dependency on external financing. Due to the restriction on transport export have
declined. Restriction in the international movement has hampered the tourism sector leading to a
fall in revenue. Hyun-Jung (2020) has made a study on the stock market of South Korea, another
leading country of the emerging economies. In his analysis, it was found that the economy has

13
shown a roller-coaster ride. The monthly export shows a downtrend in January, improved in
February, then again dipped down in March and June. The country’s export volume has come
down to an 11.2 percent point in comparison to the previous year. Raja Ram (2020) in his study
has found that COVID-19 crashes the entire global share. Indian stock market also experienced
sharp volatility due to the collapse of the global financial market. Again, fall in FPIs also reduces
the return of the Indian stock market. By analyzing the history of all unexpected events, the
author has considered COVID-19 also a “black swan” event. He has further analyses the history
of the crash and recovery of the Indian stock market and concluded that the economist can’t
predict the recovery of the economy until a stable public-health system. Ravi (2020) has
compared the pre-COVID-19 and during COVID-19 situation of the Indian stock market. His
findings revealed that before COVID-19 i.e. at the beginning of January, trade of NSE and BSE
were at their highest levels hitting peaks of 12,362 and 42,273 respectively showing favorable
stock market conditions. After the outbreak of the COVID-19 stock market came under fear as
BSE Sensex and NSE Nifty fell by 38 percent. It leads to a 27.31 percent loss of the total stock
market from the beginning of this year. The Stock of some other sectors such as hospitality,
tourism, and entertainment has been dropped by more than 40% due to transport restrictions.
Mondal (2020) has rigorously analyzed the agony of the deadly pandemic on the Indian stock
market. Findings reveal that BSE Sensex has witnessed the biggest single-day fall of 13.2
percent that has surpassed the infamous fall of 28th April 1992. Nifty also has a steep dive of
29%, overtaking the disaster of 1992. As people have compressed their consumption only to
necessary products only the FMCG Company has shown a positive return whereas other
companies face a sharp decline (Rakshit and Basistha, 2020).

There is various literature available on the impact of COVID-19 on different sectors such as
health, agriculture, industry, trade, and commerce but a limited specific study has been
conducted on its impact on the stock market of the emerging economy. The Stock market plays
an important role in the economy. As India is one of the important parts of the emerging
economy, this paper through light to study the impact of COVID-19 on the Indian stock market.
GJH GARCH is an efficient model to test the volatility of BSE and NSE, the two major stock
market of India. Again a few studies have focused on comparing the outcome of the two stock
markets before COVID-19 and during the COVID-19 situation. Our study has also made
attempted to compare the returns of both the stock market in those two mentioned time frames.

Stock Market
A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks
(also called shares), which represents the ownership claims on businesses, these may include
securities listed on a public stock exchange, as well as stock that is traded privately, such as
shares of private companies which are sold to investors through equity crowdfunding platforms.
Investment in the stock market is most often done via stockbrokerages and electronic trading
platforms. Investment is usually made with an investment strategy in mind.

14
Stocks can be categorized by the country where the company is domiciled. For
example, Nestlé and Novartis are domiciled in Switzerland and traded on the SIX Swiss
Exchange, so they may be considered as part of the Swiss stock market, although the stocks may
also be traded on exchanges in other countries, for example, as American depositary
receipts (ADRs) on U.S. stock markets.

Market Size
The total market capitalization of equity backed securities worldwide rose from US$2.5 trillion
in 1980 to US$68.65 trillion at the end of 2018. As of December 31, 2019, the total market
capitalization of all stocks worldwide was approximately US$70.75 trillion.
As of 2016, there are 60 stock exchanges in the world. Of these, there are 16 exchanges with a
market capitalization of $1 trillion or more, and they account for 87% of global market
capitalization. Apart from the Australian Securities Exchange, these 16 exchanges are all in
either North America, Europe, or Asia.
By country, the largest stock markets as of January 2020 are in the United States of America
(about 54.5%), followed by Japan (about 7.7%) and the United Kingdom (about 5.1%).
(source-Wikipedia)

Stock Exchange
A stock exchange is an exchange where stockbrokers and traders can buy and sell shares, bonds
and other securities. Many companies have their stocks listed on stock exchange. This makes the
stock more liquid and thus more attractive to many investors. The exchange also acts as a
guarantor of settlement. Some big companies have listed stocks on more than one exchange in
order to attract international investors and raise funds. Stock market participants range from
small stock investors to large, unassuming investors anywhere in the world, and can include
banks, insurance companies, pension funds and hedge funds. Their buy or sell orders can be
made on their behalf by the stock trader.

15
Some exchanges are physical locations where transactions are carried out on a trading floor, by a
method known as open outcry. This method is used in some stock exchanges and commodities
exchanges, and involves traders shouting bid and offer prices. The other type of stock exchange

has a network of computers where trades are made electronically. An example of such an
exchange is the NASDAQ.

A potential buyer bids a specific price for a stock, and a potential seller asks a specific price for
the same stock. Buying or selling at the Market means you will accept any ask price or bid price
for the stock. When the bid and ask prices match, a sale takes place, on a first-come, first-served
basis if there are multiple bidders at a given price. The purpose of a stock exchange is to
facilitate the exchange of securities between buyers and sellers, thus providing a marketplace.
The exchanges provide real-time trading information on the listed securities, facilitating price
discovery.

Bombay Security Exchange (BSE)

BSE Limited, formerly known as the Bombay Stock Exchange is an Indian stock
exchange located on Dalal Street in Mumbai. Established in 1875, it is Asia's oldest stock
exchange. The BSE is the world's 7th largest stock exchange with an overall market
capitalization of more than US$2.8 trillion on as of February 2021.
The oldest stock exchange in Asia, Bombay Stock Exchange (BSE) was established as an
association in 1875. Popularly known as BSE since the last 133 years, it is the first stock
exchange of India. A place for trading equity and funds, BSE has established its own market
governing the capital economy of the country. The BSE index called SENSEX, is India's first

16
stock market index. Besides being a financial pillar, BSE is also one of the most recognized
historic buildings in Mumbai.
The Bombay Stock Exchange continued to operate outside the building near Town Hall until
1928. The site near the Horniman Circle was acquired in 1928, and the building was completed
in 1930. The street where the site is located was called Dalal Street in Hindi (meaning "Broker
Street") because of the exchange site.
On 31 August 1957, the BSE became the first stock exchange to be recognized by the Indian
Government under the Securities Control Act. Construction of the existing building, the Phiroze
Jeejeebhoy Towers on Dalal Street, in the Fort area, began in the late 1970's and was completed
and occupied by BSE in 1980. Originally renamed BSE Towers, the name of the building was
changed shortly after the settlement, in memory of Sir Phiroze Jamshedji Jeejeebhoy, chairman
of the BSE since 1966, after his death.
The 30 constituents of BSE SENSEX as of February 21, 2021

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BSE SENSEX
The BSE SENSEX (also known as the S&P Bombay Stock Exchange Sensitive Index or
SENSEX) is a free stock market index for 30 well-established and well-funded companies listed
on the Bombay Stock Exchange. The 30 largest shareholder and best-selling companies,
represent the various industrial sectors in the Indian economy. Published on 1 January 1986,
S&P BSE SENSEX is considered the legislature of the domestic stock markets in India. The base
value of SENSEX was calculated as 100 on 1 April 1979 and its base year in 1978-79. On 25
July 2001 BSE launched the DOLLEX-30, a version linked to the SENSEX dollar.

National Stock Exchange of India (NSE)

The National Stock Exchange of India Limited (NSE) is the leading stock exchange in India,
located in Mumbai, Maharashtra. The NSE was established in 1992 as the first technology
exchange in the country. The NSE was the first exchange in the country to provide a state-of-the-
art, fully automated electronic trading system that provides easy trading areas for investors
spread across the length and breadth of the country. Vikram Limaye is the Managing Director
and Chief Executive Officer of the NSE.

The National Stock Exchange has a total capital of more than $ 2.27 trillion in the United States,
making it the 11th largest shareholding in the world since April 2018.NSE index, NIFTY 50, 50
stock indexes used mainly by investors in India and around the world as a barometer of the
Indian capital market. The NIFTY 50 index was introduced in 1996 by the NSE. However,
Vaidyanathan (2016) estimates that only about 4% of India's economy / GDP is actually derived
from Indian stock trading.

The National Stock Exchange was launched in 1992 to bring transparency to the Indian financial
markets. Instead of bargaining in the membership trade is restricted to a group of traders, the
NSE has ensured that anyone who is qualified, knowledgeable and meets the minimum financial
requirements is allowed to trade. In this context, the NSE was ahead of its time when it separated
ownership and exchange management under the direction of SEBI. The paper-based settlement
was replaced by established accounts for electronic payment and commercial transactions were
always made on time. One of the critical changes includes the strict risk management system that
has been implemented, to ensure that payment guarantees will protect investors from being
manipulated by brokers.

Currently there are around 1600 companies listed on NSE out of which around 1328 companies
are in active status.

NIFTY 50
NIFTY 50 is an indication of the Indian stock market representing the average of the 50 largest
Indian companies listed on the National Stock Exchange. It is one of the two most widely used
stock indices in India, the other being the BSE SENSEX.

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Nifty 50 is owned and operated by NSE Indices (formerly known as India Index Services &
Products Limited), a wholly owned subsidiary of NSE Strategic Investment Corporation Limited.
NSE Indices have a marketing and licensing agreement with Standard & Poor's to compile equity
indices until 2013. The Nifty 50 index was launched on April 22, 1996, and is one of the many
Nifty stock indices.

The NIFTY 50 index is designed to be the single largest financial product in India, with an
onshore and offshore ecosystem, futures trading options on the NSE, and futures and overseas
options at SGX. it is the most diligently sold treaty in the world. The WFE, IOMA and FIA study
approves the NSE leadership position

Securities and Exchange Board of India (SEBI)

The Securities and Exchange Board of India (SEBI) is the regulator of securities and commodity
markets in India under the control of the Government of India. It was established on April 12,
1988 and was empowered by Legal Authority on 30 January 1992 by SEBI Act, 1992.

The Securities and Exchange Board of India (SEBI) was first established in 1988 as an illegal
organization to regulate the security market. It became an independent body on 30 January 1992
and was empowered to pass the SEBI Act 1992 by the Indian Parliament. SEBI has its
headquarters in the business district Bandra Kurla Complex in Mumbai and has offices in the
Northern, Eastern, Southern and Western Regions of New Delhi, Kolkata, Chennai and
Ahmedabad respectively. It opened local offices in Jaipur and Bangalore and also opened offices
in Guwahati, Bhubaneshwar, Patna, Kochi and Chandigarh for the 2013-2014 Financial Year.
The SEBI is managed by its members, which consists of the following:

 The chairman is nominated by the Union Government of India.

 Two members, i.e., Officers from the Union Finance Ministry.

19
 One member from the Reserve Bank of India.
 The remaining five members are nominated by the Union Government of India, out of them
at least three shall be whole-time members.
SEBI has to be responsive to the needs of three groups, which constitute the market:

 issuers of securities
 investors
 market intermediaries
For the discharge of its functions efficiently, SEBI has been vested with the following
powers:

 to approve by−laws of Securities exchanges.

 to require the Securities exchange to amend their by−laws.
 inspect the books of accounts and call for periodical returns from recognized Securities
exchanges.
 inspect the books of accounts of financial intermediaries.
 compel certain companies to list their shares in one or more Securities exchanges.
 registration of Brokers and sub-brokers

Market Participants
Market participants include individual retail investors, institutional investors (e.g., pension
funds, insurance companies, mutual funds, index funds, exchange-traded funds, hedge funds,
investor groups, banks and various other financial institutions), and also publicly traded
corporations trading in their own shares. Robo-advisors, which automate investment for
individuals are also major participants.

IN USA
Direct ownership of stock by individuals rose slightly from 17.8% in 1992 to 17.9% in 2007,
with the median value of these holdings rising from $14,778 to $17,000. Indirect participation in
the form of retirement accounts rose from 39.3% in 1992 to 52.6% in 2007, with the median
value of these accounts more than doubling from $22,000 to $45,000 in that time.

5.5% of households directly own stock and 10.7% hold stocks indirectly in the form of
retirement accounts.

Households headed by married couples participated at rates above the national averages with
25.6% participating directly and 53.4% participating indirectly through a retirement account.
14.7% of households headed by men participated in the market directly and 33.4% owned stock
through a retirement account. 12.6% of female-headed households directly owned stock and
28.7% owned stock indirectly.

(source-Wikipedia)

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IN INDIA
(source-economic times)

Online brokerage house Upstox said it has witnessed a growth of 32 per cent in account opening
by women from April to June 2020.

Of these, 70 per cent of women are first time investors. Additionally, more than 35 percent of the
brokerage houses’ women are housewives.

According to Upstox, around 74 per cent of female customers are from Tier 2 and Tier 3 cities
like Visakhapatnam, Jaipur, Surat, Ranga Reddy, Nagpur, Nashik, Guntur, among others.

Out of the overall number of active female customers, 55 per cent are traders, whereas 45 per
cent are investors (those that invest in equity delivery).

COVID-19
(source-Wikipedia)
Coronavirus 2019 (COVID-19) is an infectious disease caused by acute acute respiratory
syndrome coronavirus 2 (SARS-CoV-2). The first case was identified in Wuhan, China, in
December 2019. The disease has spread worldwide, leading to further epidemics.

21
The symptoms of COVID-19 vary, but they often include fever, cough, fatigue, difficulty
breathing, and loss of smell and taste. Symptoms begin one to
fourteen days after exposure to the virus. Of those people who
have visible symptoms, the majority (81%) have mild
symptoms (up to pneumonia), while 14% have severe
symptoms (dyspnea, hypoxia, or more pulmonary involvement
in imaging), and -5% suffer from severe symptoms (respiratory
failure, shock, or dysfunction of multiorganism). Older people
are more likely to have severe symptoms. At least one-third of
people infected with the virus remain asymptomatic and have
no obvious symptoms at any time, but they can still spread the
disease. About 20% of those people will remain infected
throughout the virus, and some will develop symptoms over time, have pre-existing symptoms
rather than asymptomatic and therefore have a higher risk of transmitting the virus to others.
Some people continue to experience a range of side effects - known as -COVID long-months
after recovery, and limb damage. Long-term research continues to investigate the long-term
effects of the disease.
The virus that causes COVID-19 spreads mainly when an infected person is in close contact with
another person. Small droplets and aerosols containing the virus can spread from an infected
person's nose and mouth as they breathe, cough, sneeze, sing, or speak. Other people are infected
if the virus gets into their mouth, nose or eyes.
The standard methods of testing for presence of SARS-CoV-2 are nucleic acid tests, which
detects the presence of viral RNA fragments. As these tests detect RNA but not infectious virus,
its "ability to determine duration of infectivity of patients is limited." The test is typically done
on respiratory samples obtained by a nasopharyngeal swab; however, a nasal swab or sputum
sample may also be used. Results are generally available within hours. The WHO has published
several testing protocols for the disease.

Economic Impact of COVID-19

In India up to 53% of businesses have reported a certain amount of impact of closure caused by
coronavirus in operation, according to a FICCI study in March. By April 24 the unemployment
rate had risen by about 19% within a month, reaching 26% unemployed throughout India,
according to the Center for Monitoring Indian Economy About 140,000,000 (14 crores) Indians
lose his job during the closure. More than 45% of households across the country reported
declining incomes compared to last year. Various businesses such as hotels and airports cut
salaries and lay off workers. Revenue from transport companies such as Ola Cabs dropped by
almost 95% in March - April, leading to the demolition of 1400 people. It is estimated that losses
in the tourism industry will be 000 15,000 crores (US $ 2.1 billion) in March and April alone.
CII, ASSOCHAM and FAITH estimate that the vast majority of workers involved in tourism in
the country are facing unemployment. The live events industry has seen an estimated loss of Rs
3,000 crore (US $ 420 million).

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Ratings and GDP estimates
On 27 March, Moody's Investors Service (Moody's) revised its estimate of India's GDP growth
for 2020 from 5.3% to 2.5%. Fitch Ratings revised its estimate for India's growth to 2%. 'India
Ratings & Research' also downgraded the FY21 estimate to 3.6%. In April 2020, the World
Bank and rating agencies downgraded India's growth for fiscal year 2021 with the lowest figures
India has seen in three decades since India's economic liberalization in the 1990s. On 12 April
2020, a World Bank report focusing on South Asia said that India's economy is expected to grow
1.5% to 2.8% for FY21. The World Bank report said that the pandemic has "magnified pre-
existing risks to India's economic outlook". In mid-April the International Monetary Fund
projection for India for the FY21 of 1.9% GDP growth was still the highest among G-20 nations.
Confederation of Indian Industry (CII) estimated that India's GDP for FY21 will be between
0.9% and 1.5%.
Exports and Imports
India's exports in April 2020 fell by -36.65% year-on-year, while imports in April 2020 fell by -
47.36% as compared to April 2019.
Stock Markets
On 23 March 2020, stock markets in India post worst losses in history. SENSEX fell 4000 points
(13.15%) and NSE NIFTY fell 1150 points (12.98%). However, on 25 March, one day after a
complete 21-day lock-down was announced by the Prime Minister, SENSEX posted its biggest
gains in 11 years, adding a value of ₹4.7 lakh crore (US$66 billion) crore for investors. On 8
April, following positive indication from the Wall Street that the pandemic may have reached its
peak in the US, the stock markets in India rose steeply once again. By 29 April, Nifty held the
9500 mark.
State Income and Expenditure
State governments incurred huge losses to the extent of having to cut capital expenses as well as
government plans in the near future and finding alternate ways to pay salaries. The Delhi
government is 90% lower in tax revenue compared to 2019 and plans to take out loans and raise
taxes in certain sectors. Maharashtra holds all new jobs until March next year; spending under
government development schemes has been reduced by 67% in the current fund. Revenue from
the Madhya Pradesh government fell by 85% in April and borrowing has risen.
The Delhi government and the Andhra Pradesh government have imposed a 70% -75% "corona"
tax on alcohol. Liquor tax activity is the third largest source of revenue in many provinces, with
about 10-15% of total tax collection in some provinces. The ban during the roadblocks affected
the sale of alcohol, which also had a significant impact on government revenue.

23
 OBJECTIVES

 How Covid-19 affected various industries which are listed under stock exchange.
 To know the investors perception about investing
 Before the pandemic
 Now
 To study the current Stock Market situation in the country.

24
 CHAPTER 3

RESEARCH METHODOLOGY

25
 RESEARCH METHODOLOGY:

Research methodology is the specific procedures or techniques used to identify, select, process,
and analyze information about a topic. In a research paper, the methodology section allows the
reader to critically evaluate a study's overall validity and reliability.
For example, how did the researcher go about deciding:

 What data to collect (and what data to ignore)

 Who to collect it from (in research, this is called “sampling design”)
 How to collect it (this is called “data collection methods”)
 How to analyze it (this is called “data analysis methods”)

The research is based on secondary data sources as well as primary. Nifty daily closing price
indices and Sensex is collected in the official BSE and NSE. The first covid-19 case found in
India was discovered on 30 January 2020. Details of cases obtained with COVID-19 compiled in
a report by the Department of Health and Family Welfare, Government of India. Therefore, in
this study, the time before this date is considered to be the pre-COVID-19 period and the period
after this date is deemed to be COVID-19 time.

What are the main data collection methods?

There are many different options in terms of how you go about collecting data for your study.
However, these options can be grouped into the following types:
 Interviews (which can be unstructured, semi-structured or structured)
 Focus groups and group interviews
 Surveys (online or physical surveys)
 Observations
 Documents and records
 Case studies

What are the main sampling design approaches?

Sampling design is about deciding who you’re going to collect your data from (i.e. your sample).
There are many sample options, but the two main categories of sampling design are -:
1.Probability sampling
2.Non-probability sampling.

Probability sampling means that you use a completely random sample from the group of people
you’re interested in (this group is called the “population”). By using a completely random
sample, the results of your study will be generalizable to the entire population. In other words,

26
you can expect the same results across the entire group, without having to collect data from the
entire group (which is often not possible for large groups).
Non-probability sampling, on the other hand, doesn’t use a random sample. For example, it
might involve using a convenience sample, which means you’d interview or survey people that
you have access to (perhaps your friends, family or work colleagues), rather than a truly random
sample (which might be difficult to achieve due to resource constraints). With non-probability
sampling, the results are typically not generalizable.

How do I choose a research methodology?

Your research aims and objectives have a major influence on the research methodology that we
are using. So, the starting point for developing research methodology is to take a step back and
look at the big picture of research, before an individual make methodology decision. The first
question that we need to answer is whether the research is exploratory or confirmatory in nature.
If the research aims and objectives are primarily exploratory in nature, then the research will
likely be qualitative and therefore an individual might consider qualitative data collection
methods (e.g. interviews) and analysis methods (e.g. qualitative content analysis).
Conversely, if the research aims and objective are looking to measure or test something (i.e.
they’re confirmatory), then the research will quite likely be quantitative in nature, and an
individual might consider quantitative data collection methods.
And here we are using Exploratory Research Method

Exploratory Research
Exploratory research is defined as a research used to investigate a problem which is not clearly
defined. It is conducted to have a better understanding of the existing problem, but will not
provide conclusive results. For such a research, a researcher starts with a general idea and uses
this research as a medium to identify issues, that can be the focus for future research. An
important aspect here is that the researcher should be willing to change his/her direction subject
to the revelation of new data or insight. Such a research is usually carried out when the problem
is at a preliminary stage. It is often referred to as grounded theory approach or interpretive
research as it used to answer questions like what, why and how.

Types and methodologies of Exploratory research

While it may sound a little difficult to research something that has very little information about
it, there are several methods which can help a researcher figure out the best research design, data
collection methods and choice of subjects. There are two ways in which research can be
conducted namely primary and secondary. Under these two types, there are multiple methods
which can used by a researcher. The data gathered from these research can
be qualitative or quantitative. Some of the most widely used research designs include the
following:

27
Primary research methods

Primary research is information gathered directly from the subject. It can be through a group of
people or even an individual. Such a research can be carried out directly by the researcher
himself or can employ a third party to conduct it on their behalf. Primary research is specifically
carried out to explore a certain problem which requires an in-depth study.

Surveys/polls: Surveys/polls are used to gather information from a predefined group of

respondents. It is one of the most important quantitative method. Various types of surveys
or polls can be used to explore opinions, trends, etc. With the advancement in technology,
surveys can now be sent online and can be very easy to access. For instance, use of a survey
app through tablets, laptops or even mobile phones. This information is also available to the
researcher in real time as well. Nowadays, most organizations offer short length surveys and
rewards to respondents, in order to achieve higher response rates.
For example: A survey is sent to a given set of audience to understand their opinions about the
size of mobile phones when they purchase one. Based on such information organization can dig
deeper into the topic and make business related decision.

Interviews: While you may get a lot of information from public sources, but sometimes an in
person interview can give in-depth information on the subject being studied. Such a research is
a qualitative research method. An interview with a subject matter expert can give you
meaningful insights that a generalized public source won’t be able to provide. Interviews are
carried out in person or on telephone which have open-ended questions to get meaningful
information about the topic.
For example: An interview with an employee can give you more insights to find out the degree
of job satisfaction, or an interview with a subject matter expert of quantum theory can give you
in-depth information on that topic.

Focus groups: Focus group is yet another widely used method in exploratory research. In such a
method a group of people is chosen and are allowed to express their insights on the topic that is
being studied. Although, it is important to make sure that while choosing the individuals in a
focus group they should have a common background and have comparable experiences.
For example: A focus group helps a research identify the opinions of consumers if they were to
buy a phone. Such a research can help the researcher understand what the consumer value while
buying a phone. It may be screen size, brand value or even the dimensions. Based on which the
organization can understand what are consumer buying attitudes, consumer opinions, etc.

Observations: Observation research can be qualitative observation or quantitative observation.

Such a research is done to observe a person and draw the finding from their reaction to certain
parameters. In such a research, there is no direct interaction with the subject.

28
Secondary research methods
Secondary research is gathering information from previously published primary research. In such
a research you gather information from sources likes case studies, magazines, newspapers,
books, etc.

Online research: In today’s world, this is one of the fastest ways to gather information on any
topic. A lot of data is readily available on the internet and the researcher can download it
whenever he needs it. An important aspect to be noted for such a research is the genuineness and
authenticity of the source websites that the researcher is gathering the information from.
For example: A researcher needs to find out what is the percentage of people that prefer a
specific brand phone. The researcher just enters the information he needs in a search engine and
gets multiple links with related information and statistics.

Literature research: Literature research is one of the most inexpensive method used for
discovering a hypothesis. There is tremendous amount of information available in libraries,
online sources, or even commercial databases. Sources can include newspapers, magazines,
books from library, documents from government agencies, specific topic related articles,
literature, Annual reports, published statistics from research organizations and so on.
However, a few things have to be kept in mind while researching from these sources.
Government agencies have authentic information but sometimes may come with a nominal cost.
Also, research from educational institutions is generally overlooked, but in fact educational
institutions carry out a greater number of research than any other entities.

Furthermore, commercial sources provide information on major topics like political agendas,
demographics, financial information, market trends and information, etc.

For example: A company has low sales. It can be easily explored from available statistics and
market literature if the problem is market related or organization related or if the topic being
studied is regarding financial situation of the country, then research data can be accessed through
government documents or commercial sources.

Case study research: Case study research can help a researcher with finding more information
through carefully analyzing existing cases which have gone through a similar problem. Such
analysis is very important and critical especially in today’s business world. The researcher just
needs to make sure he analyses the case carefully in regards to all the variables present in the
previous case against his own case. It is very commonly used by business organizations or social
sciences sector or even in the health sector.

29
 Exploratory research: Steps to conduct a research

 Identify the problem: A researcher identifies the subject of research and the problem is
addressed by carrying out multiple methods to answer the questions.
 Create the hypothesis: When the researcher has found out that there are no prior studies
and the problem is not precisely resolved, the researcher will create a hypothesis based on
the questions obtained while identifying the problem.
 Further research: Once the data has been obtained, the researcher will continue his
study through descriptive investigation. Qualitative methods are used to further study the
subject in detail and find out if the information is true or not.

Characteristics of Exploratory research

 They are not structured studies
 It is usually low cost, interactive and open ended.
 It will enable a researcher answer questions like what is the problem? What is the purpose of
the study? And what topics could be studied?
 To carry out exploratory research, generally there is no prior research done or the existing
ones do not answer the problem precisely enough.
 It is a time-consuming research and it needs patience and has risks associated with it.
 The researcher will have to go through all the information available for the particular study he
is doing.

30
 There are no set of rules to carry out the research per se, as they are flexible, broad and
scattered.
 The research needs to have importance or value. If the problem is not important in the industry
the research carried out is ineffective.
 The research should also have a few theories which can support its findings as that will make
it easier for the researcher to assess it and move ahead in his study
 Such a research usually produces qualitative data, however in certain cases quantitative data
can be generalized for a larger sample through use of surveys and experiments.

Advantages of Exploratory research

 The researcher has a lot of flexibility and can adapt to changes as the research progresses.
 It is usually low cost.
 It helps lay the foundation of a research, which can lead to further research.
 It enables the researcher understand at an early stage, if the topic is worth investing the time
and resources and if it is worth pursuing.
 It can assist other researchers to find out possible causes for the problem, which can be further
studied in detail to find out, which of them is the most likely cause for the problem.

Disadvantages of Exploratory research

 Even though it can point you in the right direction towards what is the answer, it is usually
inconclusive.
 The main disadvantage of exploratory research is that they provide qualitative data.
Interpretation of such information can be judgmental and biased.
 Most of the times, exploratory research involves a smaller sample, hence the results cannot be
accurately interpreted for a generalized population.
 Many a times, if the data is being collected through secondary research, then there is a chance
of that data being old and is not updated.

Importance of Exploratory research

Exploratory research is carried out when a topic needs to be understood in depth, especially if it
hasn’t been done before. The goal of such a research is to explore the problem and around it and
not actually derive a conclusion from it. Such kind of research will enable a researcher to set a
strong foundation for exploring his ideas, choosing the right research design and
finding variables that actually are important for the analysis. Most importantly, such a research
can help organizations or researchers save up a lot of time and resources, as it will enable the
researcher to know if it worth pursuing.

31
 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

32
 DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS

Data analysis is a process of inspecting, cleansing, transforming, and modeling data with the goal
of discovering useful information, informing conclusions, and supporting decision-making.
Data integration is a precursor to data analysis, and data analysis is closely linked
to data visualization and data dissemination.

DATA INTERPRETATION

Data interpretation is the process of reviewing data through some predefined processes which
will help assign some meaning to the data and arrive at a relevant conclusion. It involves taking
the result of data analysis, making inferences on the relations studied, and using them to
conclude.

DATA ANALYSIS AND INTREPRETATION

33
Data analysis and interpretation is the process of assigning meaning to the collected information
and determining the conclusions, significance, and implications of the findings. ...
The analysis of NUMERICAL (QUANTITATIVE) DATA is represented in mathematical terms.

HOW COVID-19 AFFECTED VARIOUS INDUSTRIES WHICH ARE

LISTED UNDER STOCK EXCHANGE

The Indian stock market has shown negative impact of the recent global pandemic of Corona
virus. To study the effect of covid19 on Indian stock market I will take indexes of national stock
exchange and Bombay stock exchange i.e. NIFTY 50 and SENSEX respectively. Because Nifty
50 and SENSEX are formed by various companies of 14 & 15 different sectors respectively and
carries different weight-age. I will scrutinize certain sectors which hold a major weight-age in
these indexes and is affected most from COVID19 till date, which will give you an idea about
the impact of COVID19 on overall Indian stock market.

NIFTY 50 SECTOR WISE WEIGHTAGE(%)

40.00%

36.51%

35.00%

30.00%

25.00%

20.00%

14.46%
15.00%
12.44%

10.00% 9%

4.53%
5.00%
2.72% 3.13% 2.79%
2.52% 2.28% 2.22%
0.54% 0.50% 0.32%
0.00%

34

NIFTY 50 SECTOR WISE WEIGHTAGE(%)

 SENSEX SECTOR WISE WEIGHTAGE(%)
30.00%

28.13%

25.00%

20.00%

19.17%

15.00%
14.74%

10.00%

9.08%

5.00%
5.15%
4.40%
3.83%
2.81%
2.08% 2.07% 1.93%
1.72% 1.62% 1.44%
0.53%
0.00%

SENSEX SECTOR WISE WEIGHTAGE(%)

35
FS&IT (NIFTY-53.61/ SENSEX-47.30)
In NIFTY 50 alone Financial Services and Information Technology contribute 53.61% to the
general weight-age (Financial Services – 36.51% and IT – 15.03%). Also, in SENSEX, this
division contributes 47.3%. Due to corona infection there might be diminished off-take of
credits in a slowdown market and cautious consumer standpoint. There are stagnant NIMs
(Net Interest Margin) in a low interest rate system and because of lower cross fringe exchange
there is fall in revenue of transaction banking. And furthermore, the cost income on
dissemination of wealth items has also drop, because of unpredictability in the capital market.
In IT industry, the extended Lunar New Year events in China have unfairly influenced the pay
and advancement of domestic IT associations, functioning out of China. IT associations are
vivaciously dependent on labor and can't work as a result of constraint in movement of people
rising up out of lockdown and seclude issues. Hence, they can't complete or pass on the
present activities organizations in time and are also declining new ventures. Further, the
overall customers for Indian IT organizations in China have started probing for other expert
organizations in substitute zones, for instance, Malaysia, Vietnam, etc.

CONSUMER GOODS (NIFTY-14.46/ SENSEX-11.89)

Consumer goods Company’s weight-age in NIFTY 50 and SENSEX are 14.46% and 11.89%
respectively. With quickening mass shutdowns and the alarming chance of a lockdown,
customers are clustering at home and limiting every single social contact; demoralizing travel,
parties/get-togethers; eating results to a dramatic stop as various states commanding
restaurants/bars terminations. The lockdown circumstance has prompted customers stocking
vital items at home prompting more demand at first. Further, brisk recuperation for F&B
items is normal after this circumstance closes. A few brands may need to shut down for the
moment or even have to close the stores, giving a chance to business rebuilding and store
arranges redesign. Bolstered by expanding utilization of virtual technologies, internet
shopping is probably going to continuously supplant offline shopping, making
decentralization basic for the business. Additionally, non-contact demand during the
pandemic is required to help increase sales at minor stores that can host smaller groups one
after another. Conversely, grocery store chains have guaranteed supply of items at standard
costs.

OIL AND GAS (NIFTY-12.44/ SENSEX-14.71)

For transport fuels, there is discernible slow-down driven by a) control in products movement,
as auto and mechanical assembling has declined, anyway nourishment and shopper
merchandise being fundamental would remain and b) fall in commuter movement, both mass
and individual vehicle.

36
 Demand for turbine fuel will generously decrease as aviation has been painfully affected
with global and domestic travel shut.
 LPG being a household and business fuel, its demand is originating from the two sides as
individuals are at home/ordering in yet the other more extensive issue here is that LPG is
likewise imported (40-half) so that would be affected from production network point of view.

AUTOMOBILE (NIFTY-4.53%/ SENSEX-5.15)

The shutdown in China has constrained import of various fragments affecting both Indian
vehicle creators and auto section industry. However, current degrees of stock give off an
impression of being sufficient for the Indian business. If the shutdown in China drives
forward, it is depended upon to achieve an 8-10 percent tightening in Indian vehicle
manufacturing in 2020. Regardless, for the juvenile Electric Vehicle industry, the impact of
corona infection may be increasingly noticeable. Also, China is captivating in the battery
production network, as it speaks to around seventy five percent of battery manufacturing
limits.

TELECOM (NIFTY-3.13%/ SENSEX-4.40)

 Telecom is one of the most fundamental services and sector at the hour of the worldwide
pandemic. It has been a key empowering influence in helping governments and organizations
in convenient correspondence, tracking and furthermore helping execute telecommute.
 With expanded flexibility of telecommuting as accessible option for a few organizations’
telecom organizations should equip front end packages; administration and customer
acquisition funnel to satisfy need. This chance will help in lay down of another working
model, content utilization and helped business where telecom organizations can assume a vital
role.
 The expanded broadband use at home has brought about strain on the system and
overabundance of demand by 10%
 However, the telecoms are propping for sharp drop in subscriber increments. Demand for
bandwidth is predicted to go up from existing clients.

Telecom is one of the most fundamental services and sector at the hour of the worldwide
pandemic. It has been a key empowering influence in helping governments and organizations
in convenient correspondence, tracking and furthermore helping execute telecommute. With
expanded flexibility of telecommuting as accessible option for a few organizations’ telecom
organizations should equip front end packages; administration and customer acquisition
funnel to satisfy need. This chance will help in lay down of another working model, content
utilization and helped business where telecom organizations can assume a vital role. Also the

37
expanded broadband use at home has brought about strain on the system and overabundance
of demand by 10%. However, the telecoms are propping for sharp drop in subscriber
increments. Demand for bandwidth is predicted to go up from existing clients.

CONSTRUCTION, CEMENT AND CEMENT PRODUCTS (NIFTY-5.01/ SENSEX-

1.62)

 The real estate is one of the biggest employ generators in the nation and has a multiplier
impact on around 250 united ventures. The segment is relied upon to add to around 13% to
the nation's GDP by 2025 and turn into the third biggest all-inclusive at USD 1 trillion by
2030.
 The housing sector is relied upon to see quieted demand with huge decrease in the new
launches.
 With conceivable slow-down in the US and European economies, the current interest for
commercial real estate may either get diminished or deferred till H2 of the present year.
 Hospitality segment is one of the early few to have confronted the most elevated effect of
the pandemic flare-up, with the sector potentially gazing at an enormous monetary and
business misfortune.

Industrial (logistics and warehousing) part is also likely to get affected, however the bounce
back for this portion is relied upon to be the most grounded, with organizations hoping to
support investment risks in china.

The real estate is one of the biggest employ generators in the nation and has a multiplier
impact on around 250 united ventures. The segment is relied upon to add to around 13% to
the nation's GDP by 2025 and turn into the third biggest all-inclusive at USD 1 trillion by
2030. The housing sector is relied upon to see quieted demand with huge decrease in the new
launches and with conceivable slow-down in the US and European economies, the current
interest for commercial real estate may either get diminished or deferred till 2 nd quarter of the
present year. On the other hand, Hospitality segment is one of the early few to have
confronted the most elevated effect of the pandemic flare-up, with the sector potentially
gazing at an enormous monetary and business misfortune. Industrial (logistics and
warehousing) part is also likely to get affected, however the bounce back for this portion is
relied upon to be the most grounded, with organizations hoping to support investment risks in
china.

PHARMACEUTICAL (NIFTY-2.72%/ SENSEX- 1.72)

38
Despite the fact that India is one of the top producers of medicine exporter in the world, the
local Pharma industry relies enthusiastically upon import of mass prescriptions (APIs and
intermediates that give tranquilizes their supportive worth). India imported around Rs 24,900
crore (What is crore?) (1 crore = 10 million) worth of mass medicine in FY19, speaking to
approximately 40 percent of the general local usage. With India's API imports from China
averaging pretty much 70 percent of its usage by regard, importers are at the risk of supply
unsettling influences and unanticipated worth movement. For some fundamental anti infection
agents and antipyretics, dependence on imports from China is almost 100 percent. These APIs
require enormous constraints of maturation boilers, USP of Chinese makers, giving a high
ground to Chinese producers. Transport and following of transfers are so far questionable
inside China whether interior or outward

METALS (NIFTY-2.52/ SENSEX- 0.53)

 Steel – Construction, infrastructure and automobile sector represent 75 percent of steel

utilization in India. The lofty slow-down in these segments is probably going to influence
steel demand. Further, demand side issues are probably going to keep steel costs under strain.
Interruptions in seaborne cargo may affect accessibility and costs of coking coal (which is
mostly imported). Indian steel players with exposure to worldwide markets will be affected
more. Small leveraged wipe iron players will likewise be gravely affected.
Aluminum and copper – About 80 percent of the aluminum is devoured by construction,
transport and electrical area. The area is probably going to see demand contract due to
COVID-19 circumstance. Further, since aluminum costs are connected to worldwide indices,
worldwide log jam is probably going to hit organizations' realization and profitability. Effect
will be more intense on organizations with higher exposure to the vehicle division. Copper
costs have fallen pointedly since January. India imports copper concentrate and the cost for
that also has decreased. Be that as it may, exchange rate declining will hardly fix the crude
material value advantage. More than 50 percent of copper is devoured by electrical division,
which may likewise observe slow-down.

 Iron Ore – Iron ore sector in India was already reeled under mining lease expiry in March
2020. Demand slow-down due to COVID-19 circumstance will additionally influence costs
and along these lines, profitability of organizations. Out of nowhere, the bid cost cited for the
mines in the bartering will seem, by all accounts, to be extensively high
Coal –Coal is an essential input to the power sector and subsequently supply disturbances are
possibly going to be insignificant. Supply of coal at notified costs by CIL (Coal India
Limited) will restrain any value effect of COVID-19. Nonetheless, demand slow-down by
end-use areas, combined with ample inventories, will affect e-auction realization of CIL (~13
percent of volumes). The demand for coal in Q1 of FY21 might be lesser by 20 – 60 MT,
contingent upon the span of the lock-down. On the off chance that the fall in cost of coal

39
 lingers because of demand correction, it is probably going to affect energy transition
internationally. In addition, the danger of increased energy costs and employment loss from
closure of coal on a COVID-19-drove downturn might be too high a hazard for the political
administration around the globe, including in India.

POWER (NIFTY- 2.28/ SENSEX- 1.93)

• Effectively stifled demand (5-year CAGR of 4.9 percent) will diminish further because of
shutdown (if continued over longer time) of mechanical and business movement (which add to
50 percent demand).

• Being basic service, power generation is less likely to be affected. Surplus accessibility of
power can be utilized to adjust influenced generation. Coal mining disturbance due to COVID-19
may prompt coal shortage in certain plants, influencing territorial power accessibility. Though,
lower demand may counterbalance any inventory requirements.

• Around 62 GW thermal 8, 11 GW RE9 and transmission projects under construction

likely to get deferred with delayed lockdown, subsequently affecting debt servicing and project
feasibility.

• Collection postponements and defaults likely by consumers (lower section household

categories because of wage interruption; and business and industrial defaults because of business
discontinuity) which will squeeze monetarily feeble Discomfort. This will have a falling impact
on payment to generators and debt service to FIs.

• Tariff update for utilities (due in March) will be conceded, prompting income deficiency
(delay in public hearings and so forth.)

• Government spending plans might be challenged because of distraction on COVID-19

bringing about lower subsidy and conceivable postponement in payment of government dues.

PERFORMANCE OF INDICES OF INDIAN STOCK MARKET

As we see can see that every sector is drastically affected by corona virus and to measure the
effect of it as a whole on Indian stock market, we will now analyze how indexes responds to it.
From 1st December to till 24th February both the indexes are performing well but right after 25th
February each index starts taking a dip. And it becomes worse in next month, as many states-
imposed lockdown on 14th march and the country was put in a complete lockdown state from
25th March. As of 31st March, NIFTY 50 and SENSEX were at 8597.75 and 29468.49
respectively

40
 NIFTY 50
14000
25 Feb 2020
12000

10000

8000

Closing price
6000

4000

2000

0
02/Dec/19 02/Jan/20 02/Feb/20 02/Mar/20

41
TO KNOW THE INVESTORS PERCEPTION ABOUT INVESTING
I used primary data to know the perception of the investors about investing during the covid-19.
I only approach to those people who invests in the stock market. I used to google form to collect
the data from the respondents. I collected data from 50 respondents.

1.EDUCATIONAL QUALIFICATION OF RESPONDENTS-:

SENSEX
45000
25 Feb 2020
40000
35000
30000
25000
20000 Closing price
15000
10000
5000
0
02/Dec/19 02/Jan/20 02/Feb/20 02/Mar/20

42
 EDUCATIONAL QUALIFICATIONS

0%4%
12%

26% 58%

POSTGRADUATE GRADUATE 12TH OTHER

EDUCATIONAL QUALIFICATION OF RESPONDENTS-: PERCENTAGE

(%)
TOTAL=50
POSTGRADUATE 29 58%
GRADUATE 13 26%
12TH 6 12%
10TH 0 0%
OTHERS 2 4%

If we talk about above pie diagram then we can say that here we are categorizing the respondents
on the basis of educational qualification. we have collected data from 50 respondents who
invests in the stock market. Out of total 29(58%) respondents are postgraduate, 13(26%) are
graduate, 6(12%) are 12th and 2(4%) are having another qualification. So, from here we can say
that majority of the respondent are post graduate and graduate who invest in the stock market.
2.CLASSIFICATION OF RESPONDENTS ON THE BASIS OF OCCUPATION-:

43
 OCCUPATION

9%
17%

2%

72%

GOVERNMENT EMPLOYEE NON GOVERNMENT EMPLOYEE ENTREPRENEUR STUDENT

ON THE BASIS OF OCCUPATION PERCENTAGE (%)

TOTAL=50
GOV.EMPLOYEE 4 8%
NON-GOV. EMP… 8 16%
ENTREPRENEUR 1 2%
STUDENTS 34 68%
OTHER 3 6%

In the above pie diagram, we are classifying our respondents on the basis of occupation. Because
occupation plays very significant role in the investment if a person has the more income he can
also invest more and if a person has the less income then he can invest less. So, investment and
income have positive relationship.
We have the data of 50 respondent who invests in the stock market. 4(8%) are gov. employees, 8
(16%) are non. Gov. employees, 1(2%) are entrepreneur, 34(68%) are student and 3(6%) are
from other occupation.
Here we get to know that the percentage of students are more than the gov/non gov. employees.
Because nowadays with the help of internet it become very easy to do investment and they have
enough time to learn about it. And it may be possible a person who is a gov/non gov. employee
have traditional thinking and they think like stock market is a gambling or they are not have the
knowledge about the stock market and they have no enough time to learn about it.

3.CLASSIFICATION ON TYPE OF INVESTMENT WHICH THEY DO-:

44
 TYPE OF INVESTMENT

0%
40%
60%

FOR LONG TERM FOR SHORT TERM

TYPE OF INVESTMENT PERCENTAGE (%)

TOTAL=50
FOR SHORT TERM 20 40%
FOR LONG TERM 30 60%

In the above pie diagram, we categorize the respondents on the basis of type of investment they
do. Because there are always two types of investment we can do. 1st one is for short period and
2nd for long period. But it totally depends on the investor that what kind of investment he wants
to do.
The financial goals of the investor also affect the period of investment. And there are always two
types of investor one is risk averse and 2nd risk taker. It also affects the period of investment.
Here 20(40%) investors invests for short period of time and 30(60%) investors invests for long
period of time.

4.EFECT OF COVID-19 ON INVESTMENT

EFFECT OF COVID-19 ON INVESTMENT

NO
10%0%

YES
90%

YES NO

45
EFFECT OF COVID-19 ON PERCENTAGE (%)
INVESTMENT TOTAL=50
YES 45 90%
NO 5 10%

In the above pie diagram, we get to know that covid-19 affected the investment of the investor.
Because during this pandemic almost all the industries are suffering from the loss. Obviously if
they are suffering from loss then the value of the firm is decreased and by this the wealth of the
shareholder and value of the share is also decreased. By this investor suffered from loss.
So, from our collected data 45(90%) of the investor are suffered from covid-19 and 5(10%) are
not. So, majority of people are those whom investment is affected by this pandemic.

5.WHAT HAPPENED TO INVESTOR’S INVESTMENT DURING COVID-19-:

EFFECT OF COVID-19 ON INVESTOR'S

INVESTMENT

APPRECIATED
0%10%

DEPRECIATED
90%

APPRECIATED DEPRECIATED

EFFECT ON INVESTMENT PERCENTAGE (%)

TOTAL=50
DEPRECIATED 45 90%
APPRECIATED 5 10%

In the above pie diagram, we collected data from the respondents about their invested is that
appreciated or depreciated during this pandemic?
Because in the early phase of covid-19 it became difficult to fulfill the basic needs of the people
almost all the thinking about their basic necessities. Many people lost their jobs because the gov.
46
ordered that no one can engage in these activities. So, this thing effect on the industries and on
the investors. The money invested by the investors in the stock market starts depreciating. It
negatively effects on the investor investment.

From the total number of respondents 45(90%) people are those their money is depreciated
during this pandemic and there is always an exception 5(10%) people are those whom
investment is appreciated in the pandemic. Maybe they have invested in those industries whose
demand is more in the pandemic.

6.IF DEPRECIATED – RESULT ON INVESTOR’S INVESTMENT

RESULT OF DEPRECIATION ON INVESTOR'S

INVESTMENT

0%
30%

70%

RETAINED WITHDRAWN

RESULT OF DEPRECIATION ON PERCENTAGE (%)

INVESTOR'S INVESTMENT TOTAL=50
RETAINED 35 70%
WITHDRAWN 15 30%

From the above pie diagram, we analyzed that if the investment of the investors is depreciated
then what they did with that. They retained that investment or withdraw that investment.
Because previously we talked about the two types of investors 1st one is risk averse and 2nd one is
risk taker. Risk averse is that investor who will not tolerate the risk and if this type of situation
comes where he is having loss then he will definitely withdraw his investment. And if we talk
about the 2nd type of investor who is risk taker if he will face that problem where his invested
money is depreciating then he will retain his money in this hope that it will appreciate in the
future. He has the tendency to take the risk.
From our respondents 35(70%) investors are those who retained their investment and 15(30%)
are those who withdraw their investment.

47
7.STILL INVESTOR’S ARE INVESTING IN STOCK MARKET-:

STILL INVESTING IN STOCK MARKET

0%

46%
54%

YES NO

STILL INVESTING IN STOCKS PERCENTAGE (%) TOTAL=50

YES 27 54%
NO 23 46%

Here we tried to know that if the money of the investors is depreciated then they are still
investing in the stock market or not. Because nowadays the situation of the stock market is
recovering and it’s a very good opportunity to invest into the stock market.
But sometimes it happens if someone suffers from loss in the past by any activity then in future
he/she will hesitate to do that particular thing. It totally depends on the investor perception.
But here from our total no. of respondents 27(54%) are still investing and 23(46%) are not
investing in the stock market.

8.INVESTMENT AFTER ANALYSIS-:

INVESTMENT AFTER ANALYSIS

0%
30%

70%

YES NO

48
INVESTMENT AFTER ANALYSIS PERCENTAGE (%) TOTAL-50
YES 35 70
NO 15 30

It’s very important to do investment after analysis. Because investing in stock market is not
gambling, we need to do analysis before investing in any securities. For the analysis of securities.
If we are investing money without the analysis then definitely, we will suffer from loss and if we
are doing investment by analysis then surely, we will get good return on our investment.
From our total respondents 35(70%) are investing by doing analysis and 15(30%) are doing
investment without the analysis.

9.TYPE OF ANALYSIS THEY PREFER-:

TYPE OF ANALYSIS THEY PREFER

0%
29%

71%

TECHNICAL ANALYSIS FUNDAMENTAL ANALYSIS

TYPE OF ANALYSIS THEY PREFER PERCENTAGE (%) TOTAL=35

TECHNICAL 25 71
FUNDAMENTAL 10 29

we have two methods technical analysis and fundamental analysis.

Technical analysis is a means of examining and predicting price movements in the financial
markets, by using historical price charts and market statistics. Fundamental analysis is a method
of evaluating the intrinsic value of an asset and analyzing the factors that could influence its
price in the future. This form of analysis is based on external events and influences, as well as
financial statements and industry trends. If we are doing technical analysis that helps to do
investment for short period of time and saves our time. Fundamental analysis helps when we are
doing investment for long period of time.
Our 35 respondents do investment after the analysis. 25(71%) prefers technical analysis and
10(29%) prefers fundamental analysis.

49
10.DIFFERENT BROKER’S INVESTOR’S ARE USING-:

DIFFERENT BROKER'S INVESTOR'S ARE USING

FOR INVESTMENT
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%

UPSTOX GROW MPAISA ZERODHA OTHER

DIFFERENT BROKER’S PERCENTAGE (%) TOTAL=50

INVESTOR’S ARE USING
UPSTOX 16 32.7
GROW 6 12.2
MPAISA 2 4
ZERODHA 8 16.3
OTHER 18 36.7

For doing investment we need a broker. A broker gets paid on commission for helping clients
buy and sell investment tools like stocks, bonds and mutual funds. To buy and sell stocks, bonds
and mutual funds, you need a broker. Brokers make money by charging commissions on each
trade and collecting fees from investors.
Nowadays there are lot of brokers are available with the help of them we can do our investment.
But every investor use broker according to their convenience. In the past times we need to go to
the broker physically but by the advancement in technology we can do that same thing on our
smartphone/laptop.
So, we take the 50 respondents and out of them 16(32.7%) are using UPSTOX, 6(12.2) % are
using GROW, 2(4%) are using MPAISA, 8(16.3%) are using ZERODHHA and 18(36.7%) are
using the other brokers.

50
11.WHAT INVESTOR THINK IN WHICH INDUSTRY THEY CAN INVEST
ACCORDING TO THE ECONOMIC 2021 BUDGET OF INDIA FOR HIGHER
RETURN.
WHAT INVESTOR THINK IN WHICH INDUSTRY THEY CAN INVEST
ACCORDING TO THE ECONOMIC 2021 BUDGET OF INDIA FOR
HIGHER RETURN

18% 18%
5%
9%

50%

FMCG PHARAM.. AUTOMOBILE TELECOM. OTHER

INVESTMENT OPPORTUNITY IN PERCENTAGE (%) TOTAL=49

WHICH INDUSTRY A/C TO
BUDGET2021
FMCG 3 6.1%
PHARMA. 28 57.1%
AUTOMOBILE 5 10.2%
TELECOM… 3 6.1%
OTHER 10 20.4%

At last we tried to know the investor perception about what industry can grow rapidly after this
phase of covid-19. And if they want to invest in future then in which industry they will prefer to
invest. Because the growth of any industry depends on lot of factors. It is mostly affected by the
micro and macro-economic factors. And it also depends on the budget of the gov. that to which
industry they are promoting.
So, most of the respondents agree with that the pharmaceutical industry will going to grow in
future. And if they will invest in any industry then they will invest in the pharmaceutical
industry.

51
CURRNET MARKET SITUATION OF STOCK MARKET IN COUNTRY-:
Here we will take the fluctuations of two major stock exchanges of our country that are NSE and
BSE for the determination of current market situation of the stock market in our country,

FLUCTUATIONS OF NSE

52
53
FLUCTUATIONS OF BSE

We have taken the fluctuations of 6 months of NSE and BSE respectively. And we are seeing
that from the previous six months the stock market is recovering from the negative impact of
covid-19.

54
 CHAPTER 5
FINDINGS, SUGGESTIONS AND CONCLUSON

55
 FINDING

The Indian stock market has shown negative impact of the recent global pandemic of Corona
virus. To study the effect of covid19 on Indian stock market I had taken indexes of national stock
exchange and Bombay stock exchange i.e. NIFTY 50 and SENSEX respectively. Because Nifty
50 and SENSEX are formed by various companies of 14 & 15 different sectors respectively and
carries different weight-age. I used primary data to know the perception of the investors about
investing during the covid-19. I only approach to those people who invests in the stock market. I
used to google form to collect the data from the respondents. I collected data from 50
respondents.
The objectives of the study were: -
 How Covid-19 affected various industries which are listed under stock exchange.
 To know the investors perception about investing.
 To study the current Stock Market situation in the country
FINDINGS ARE: -
Negative percentage change in the growth rate of various industries listed on stock exchanges-:

 Finance Services and IT industry decreased by -53.61% on Nifty and -47.30% on Sensex.
 Consumer Goods industry decreased by -14.46% on Nifty and -11.89 on Sensex.
 Oil and gas industry decreased by -12.44% on Nifty and -14.71 on Sensex.
 Automobile industry decreased by -4.53% on Nifty and -5.15% on Sensex.
 Telecommunication industry decreased by –3.13% on Nifty and -4.40% on Sensex.
 Construction industry decreased by -5.01% on Nifty and -1.6% on Sensex.
 Pharma. Industry decreased by -2.72% on Nifty and -1.72% on Sensex.
 Metals industry decreased by -2.52% on Nifty and -0.53% on Sensex.
 Power industry decreased by -2.28% on Nifty and -1.93% on Sensex.

Perception of the investors about investing:

 It was found that out of 50 respondent’s maximum respondents are postgraduate i.e. 58%
 It was found that 8% respondents are gov. employee, 16% are non gov., 2% are
entrepreneur, 68% students and 6% are others.
 The study revealed that 40% respondents do investment for short term and 60% for long
term.
 It was found that the investment of 90% respondent’s is affected and it decreased due to
covid-19.

56
  The study revealed that when the investment of the respondents was depreciated then
70% respondents decided to retain that and 30% withdraw that.
 It was found that 54% are still doing investment and 46% are not.
 From the study it is revealed that 70% respondents do investment after analysis and 30%
without analysis. 71% do technical analysis and 29% do fundamental analysis.
 It was found that about the broker 32.7% investor use upstox, 12.2% grow, 4% mpaisa,
16.3% Zerodha and 36.7% others.
 At last it was found that 57.1% investors think the pharmaceutical industry will grow in
future and they will invest in that.

Current market situation of the stock market in country-:

 We have taken the fluctuations of 6 months of NSE and BSE respectively. And we had
seen that from the previous six months the stock market is recovering from the negative
impact of covid-19.
 If we talk about Nifty then on June 2020 it was around 9600points and on march 2021 it
is 14800
 If we talk about Sensex then on oct.2020 it was around 40000 points and on march 2021
it is 50000.

57
 SUGGESTIONS

Once the pandemic is over normalcy will surely return to the business and economy, the stock
market will start moving in a positive direction, and as witnessed in the past, recovery would be
faster than expected.
 It is recommended that the government should take some efforts to stabilize the industrial
sector that can take stock market toward positive side.
 People can take help of reliable certified financial planners for making the right
investment decisions & for having an ideal portfolio.
 Most of the people have a fear to invest in stock market because of lack of knowledge. So
adequate knowledge is also important.
 We should take necessary precautions to defeat this virus.
 We should follow the necessary guidelines regarding covid-19 in workplace so no one
will be infect by this and all the industries can continue their work.

58
 CONCLUSION

Indian stock market has been hurt by the corona virus and every sector has been hurt by the
corona virus which gradually affected their performance. From 1st December 2019 to 31st march
2020, NIFTY 50 & SENSEX both took a dip of 31.954% and 31.1769% respectively, which is a
result of bad performance of most of the sectors in this pandemic. Situations could have been
worse but because of the early lockdown, imposed by the Indian Government, saved India from
even more worse conditions. The unprecedented pandemic has already brought challenges to
almost all countries. Not a single sector is left unaffected because of COVID-19. In brief, the
results conclude that the Coronavirus outbreak has affected the stock price and increased the
volatility in the Indian stock markets, and affect the financial system. Once the pandemic is over
normalcy will surely return to the business and economy, the stock market will start moving in a
positive direction, and as witnessed in the past, recovery would be faster than expected.

59
 REFRENCES

 https://www.bis.org/publ/qtrpdf/r_qt2003w.htm
 Indian Capital market is well placed to weather COVID storm; here's why
(moneycontrol.com)
 COVID-19 Impact On Stock Market (outlookindia.com)
 Covid-19 and the Indian stock market movement (investindia.gov.in)
 Impact Of COVID 19 On The Indian Stock Markets-S Ravi - BW Business world
 Women participation in equity market grows during COVID-19 (indiatimes.com)
 http://theindianstockbrokers.com/history-of-indian-stock-market/
 What Is Research Methodology? Simple Definition (With Examples) - Grad Coach
 https://www.questionpro.com/blog/exploratory-
research/#:~:text=Exploratory%20research%20is%20defined%20as%20a%20research%2
0used,existing%20problem,%20but%20will%20not%20provide%20conclusive%20result
s.

60
QUESTIONNAIRE

61
 IMPACT OF COVID-19 ON INDIAN
STOCK MARKET
(My name is Mohit Sharma. I am a student of MBA(Finance) in HIMACHAL PRADESH
TECHNICAL UNIVERSITY.I am approaching with you this questionnaire to know your
Perception about the Indian Stock Market and The Impact of Covid-19 On Indian Stock
Market.)
* Required

1. Email address *

2. Name *

3. State/UT *

4. Age *

5. Occupation *

Mark only one oval.

Government Employee

Non-Government Employee

Entrepreneur

62
 Student

6.Do you Invest money? *

Mark only one oval.

yes

No

7. What type of investment do you prefer? *

Mark only one oval.

Speculation

for Short

Term for

Long-Term

8.Did Covid-19 affect your investment? *

Mark only one oval.

yes

No

9.What happened to your investment? *

Mark only one oval.

63
 Appreciated

Depreciated

10.If depreciated, then what you did to your investment.

Mark only one oval.

Retained

Withdraw

11.Do you still have invested money in Stock Market? *

Mark only one oval.

Yes

No

12.Do you invest after analyzing? *

Mark only one oval.

Yes

No

13 What analysis do you prefer?

Mark only one oval.

Technical

64
 Fundament

al

14. Which investing platform do you use? *

Mark only one oval.

Zerodha

Upstox

Moneycontrol

Grow

mpaisa

Other:

15. According to you, on which industry do you think that the investor will get higher return
as per the Economic Budget 2021 of India? *

Mark only one oval.

FMCG

Pharmaceutical

Automobile

Telecom

Other:

16. As we know that India is still facing this pandemic, so do you think that investor have
any scope on investing Pharmaceutical industry? *

65
Mark only one oval.
Yes

No

66