Examining the association between stock return and seasonally adjusted trade in India

International Journal of Research In Business and Social Science

Piyali RoyChowdhury¹  Roopashree Rao²  N. Viswa Nadham³ 

[1]Department of MBA, CMR Institute of Technology Bengaluru

[2]Som-Lalit Institute of Management Studies Ahmedabad

[3]St. Augustine University of Tanzania

关键词: panel vector auto regression, panel granger causality, indian banking sector, covid-19, pandemic;   

DOI  :  10.20525/ijrbs.v10i8.1487

来源: DOAJ

【 摘 要 】

This paper aims to examine the association between Indian stock market return and seasonally adjusted trade for Indian Banking sector shares. The objective of the study is to measure the association between stock return and seasonally adjusted trade in the Indian stock market and recommend strategies. Due to the Covid 19 outbreak banking sector was highly affected, the Government of India also announced a moratorium on all categories of loans, banking business majorly depending on the deposit and loan creation, so the Government decision threaten the banking sector. Many private sector banks terminated temporary staff because of cut cost policies.  We divided the banking sector into three segments. Namely, Public, Private and Small Finance Banks. Utilizing daily data from February 2020 to July 2020, consisting of 2196 in numbers, we ran a panel Vector Autoregression model to analyze the association. It was found that the return of stocks is influencing the volume of trade during this period. Also, while measuring the short-run causality, it is found that the return of banking stocks specifically granger causes the volume of trade. The suggestions of the study lie in providing importance to framing policies on improving the financial health of the economy through different fiscal policies. Strategic policies are required to face post-Covid situations. The turnaround strategies to combat the effects of the pandemic are characterized by the availability of the sustainable resources of the particular sector in consideration.

【 授权许可】

Unknown