Investigating the Impact of the First and Second Waves of the COVID - 19 Pandemic on the Indian Stock and Commodity Markets : An ARDL Analysis of Gold, Oil, and Stock Market Prices

2021 ◽  
Vol 15 (12) ◽  
pp. 8
Author(s):  
Aamir Aijaz Syed ◽  
Ravindra Tripathi ◽  
Jyoti Deewan
Keyword(s):  
Stock Market ◽  
Commodity Markets ◽  
Market Prices ◽  
The Impact

scholarly journals Impact persistence of stock market risks in commodity markets: Evidence from China

PLoS ONE ◽  
2021 ◽  
Vol 16 (11) ◽  
pp. e0259308
Author(s):  
Shusheng Ding ◽  
Zhipan Yuan ◽  
Fan Chen ◽  
Xihan Xiong ◽  
Zheng Lu ◽  
...  
Keyword(s):  
Stock Market ◽  
Financial Markets ◽  
Market Risk ◽  
Commodity Markets ◽  
Chinese Stock Market ◽  
Stock Market Volatility ◽  
Gold Market ◽  
Shock Impact ◽  
Market Shocks ◽  
The Impact

The risk spillover among financial markets has been noticeably investigated in a burgeoning number of literature. Given those doctrines, we scrutinize the impact persistence of volatility spillover and illiquidity spillover of Chinese commodity markets in this paper. Based on the sample from 2010 to 2020, we reveal that there is a cross-market spillover of volatility and illiquidity in China and also, interactions between volatility and illiquidity in different financial markets are pronounced. More importantly, we demonstrate that different commodity markets have different responsiveness to stock market shocks, which embeds their market characteristics. Specifically, we discover that the majority of the traders in gold market might be hedger and therefore gold market is more sensitive to stock market illiquidity shock and thus the shock impact in persistent. On the other hand, agricultural markets like corn and soybean markets might be dominated by investors and thus those markets respond to the stock market volatility shocks and the shock impact in persistent over 10 periods given the first period of risk shock happening. In fact, different Chinese commodity markets’ responsiveness towards Chinese stock market risk shocks indicates the stock market risk impact persistence in Chinese commodity markets. This result can help policymakers to understand the policy propagation effect according to this risk spillover channel and risk impact persistence mechanism in China.

COVID-19 Sentiments and Impact on Stock Market Prices

2021 ◽  
Vol 2 (2) ◽  
pp. 40-58
Author(s):  
Chandra Prayaga ◽  
Krishna Devulapalli ◽  
Lakshmi Prayaga ◽  
Aaron Wade
Keyword(s):  
Time Series ◽  
Stock Market ◽  
Stock Prices ◽  
Multivariate Time Series ◽  
Market Prices ◽  
Vector Error Correction ◽  
Jones Index ◽  
Vector Error ◽  
The Impact ◽  
Stock Values

This paper studies the impact of sentiments expressed by tweets from Twitter on the stock market associated with COVID-19 during the critical period from December 1, 2019 to May 31, 2020. The stock prices of 30 companies on the Dow Jones Index were collected for this period. Twitter tweets were also collected, using the search phrases “COVID-19” and “Corona Virus” for the same period, and their sentiment scores were calculated. The three time series, open and close stock values, and the corresponding sentiment scores from tweets were sorted by date and combined. Multivariate time series models based on vector error correction (VEC) models were applied to this data. Forecasts for these 30 companies were made for the time series open, for the 30 days of June 2020, following the data collection period. Stock market data for the month of June was for all the companies was compared with the forecast from the model. These were found to be in excellent agreement, implying that sentiment had a significant impact or was significantly impacted by the stock market prices.

Is stock market in Sub-Saharan Africa resilient to health shocks?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Terver Kumeka ◽  
Patricia Ajayi ◽  
Oluwatosin Adeniyi
Keyword(s):  
Exchange Rate ◽  
Stock Market ◽  
Financial Markets ◽  
Stock Returns ◽  
Stock Markets ◽  
Commodity Markets ◽  
The Other ◽  
Content Type ◽  
Exogenous Shocks ◽  
The Impact

Purpose This paper aims to examine the impact of health and other exogenous shocks on stock markets in Africa. Particularly, the authors examined the resilience of the major stock markets in 12 African economies during the recent global pandemic. Design/methodology/approach This paper uses the recent panel vector autoregressive model, which enables us to capture the response of stock markets to shocks in COVID-19, commodity markets and exchange rate. For robustness, the authors also analysed the panel Granger causality test. Data was obtained for the period ranging from 2 January 2020 to 31 December 2020. Findings The results show that the growth in COVID-19 cases and deaths do not have any substantial impact on the stock market returns of these economies. In terms of commodity markets, the authors find that gold price has a negative contemporaneous effect on stock returns, but the effect fizzles out around the fifth day while crude oil price, on the other hand, has a significant positive simult aneous impact on stock returns and also converges around the fifth day. The authors further find that the exchange rate has a contemporaneous and nonlinear effect on stock returns and seems to be more dramatic when compared with the other variables. Overall, the results show that stock markets in Africa appear to be flexible and resilient against the COVID-19 outbreak but are affected by other exogenous shocks such as volatile commodity prices and the foreign exchange market. The effect is, however, short-lived – between one to five days. Practical implications Following the study’s findings, policies should be put in place to support financial markets by way of hedging against commodity instability and securing domestic currency financing. Policymakers are also recommended to concentrate on managing the uncertainties around their exchange rate markets and develop robust and efficient domestic financial markets to encourage local and foreign investors. Originality/value Several studies have been carried out on the effects of disasters (such as the COVID-19 pandemic) on stock markets, but only a few studies have examined the resilience of stock markets to health and other exogenous shocks. This study’s attempt is not only to examine the impact of COVID-19 health shocks on stock markets but also to analyse the resilience of the sampled stock markets. The authors also analyse the resilience of stock markets to commodity markets and exchange rates shocks.

scholarly journals Assessing the Impact of COVID-19 Pandemic on the Stock and Commodity Markets Performance and Sustainability: A Comparative Analysis of South Asian Countries

2021 ◽  
Vol 13 (10) ◽  
pp. 5669
Author(s):  
Farhan Ahmed ◽  
Aamir Aijaz Syed ◽  
Muhammad Abdul Kamal ◽  
Maria de las Nieves López-García ◽  
Jose Pedro Ramos-Requena ◽  
...  
Keyword(s):  
Comparative Analysis ◽  
Stock Market ◽  
South Asian ◽  
Oil Prices ◽  
Commodity Markets ◽  
Commodity Market ◽  
Asian Countries ◽  
Short Period ◽  
The Impact ◽  
Second Wave

COVID-19 is certainly the first sustainability crisis of the 21st century. The paper examines the impact of COVID-19 on the Indian stock and commodity markets during the different phases of lockdown. In addition, the effect of COVID-19 on the Indian stock and commodity markets during the first and second waves of the COVID-19 spread was compared. A comparative analysis of the stock market performances and sustainability of selected South Asian countries is also included in the study, which covers the lockdown period as well as the time frame of the first and second waves of COVID-19 spread. To examine the above relationship, the conventional Welch test, heteroskedastic independent t-test, and the GMM multivariate analysis is employed, on the stock return, gold prices, and oil prices. The findings conclude that during the different phases of lockdown in India, COVID-19 has a negative and significant impact on oil prices and stock market performance. However, in terms of gold prices, the effect is positive and significant. The results of the first wave of COVID-19 infection also corroborate with the above findings. However, the results are contradictory during the second wave of coronavirus infection. Furthermore, the study also substantiates that COVID-19 has significantly affected the stock market performances of selected South Asian countries. However, the impact on the stock market performances was only for a short period and it diminished in the second wave of COVID-19 spread in all the selected South Asian countries. The findings contribute to the research on the stock and commodity market impact of a pandemic by providing empirical evidence that COVID-19 has spill-over effects on stock markets and commodity market performances. This result also helps investors in assessing the trends of the stock and commodity markets during the pandemic outbreak.

Oil market pricing and the impact on stock market

2018 ◽  
Vol 24 (1) ◽  
pp. 178-188
Author(s):  
A.Yu. Mikhailov ◽  
◽  
T.F. Burova ◽  
Keyword(s):  
Stock Market ◽  
Market Pricing ◽  
Oil Market ◽  
The Impact

Insider Trading: A White-Collar Crime and its Impact on Share Market

Think India ◽  
2014 ◽  
Vol 17 (3) ◽  
pp. 22-24
Author(s):  
Sreekumar Ray
Keyword(s):  
Stock Market ◽  
Insider Trading ◽  
White Collar Crime ◽  
White Collar ◽  
Adverse Impact ◽  
High Ranking ◽  
Internal Information ◽  
Indian Stock Market ◽  
The Impact

Since inception, the growth of the Indian stock market has been constrained through unethical, illegal and self-actualized activities of swanky persons involved in different capacities in the market. The stock market was trying to retrieve itself from the devastating effect of Harshad Mehta share market scam, when within a gap of ten years it was once again pushed into the darkness of the dungeon by another demon-child of the country- Ketan Parekh. Corporations have been looted by the insider traders, diversifying internal information to an external in lieu of cash. Investigations in the majority cases have proved the involvement of the high ranking officers of the companies in the crime, sophistically referred to as white-collar crime. It has an adverse impact on the growth and sustainability of the share market. Under the light of the above issue, this paper endeavors to study the impact of such crime on the share market. It focuses on the mechanism behind the insider-trading, its impact on the share market and the regulators supervision on the issue. Finally, suggestions have been provided which will contribute towards the dream of every Indian-a fraud-free share market focusing towards the overall development of the country.

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