Impact of COVID-19 on Stock Markets: An Investigation and Way Forward

Abstract

This study analyzes the impact of the COVID-19 pandemic on stock markets in different regions of the world. Impact of COVID-19 on the stock market is like a black swan event. To analyze the impact of COVID-19 on the stock market, study includes different indices, ratios, strategies and past events to compare. Study is focused on the stock market of countries such as the United States and India to see effects on developed and developing countries. The trends were found similar worldwide. The United States, which has been a bull market for a long time, is also experiencing a plummeting stock market. In the Dow Jones Index’s first quarter history, this year’s first quarter has marked the worst performance ever. In the year 2020, Indian stock market from 1st January to 23rd March SENSEX has plunged 37.1% and from 1st January to 18th May SENSEX has plunged 27.2%. The study tries to touch upon the past crises and its impact on various stock markets. Sentiments of an investor play a major role in the stock market. A good strategy if used in this type of stock market can help generate profits and remain stable in the volatile situation as well.