A PROJECT REPORT ON

“A STUDY ON IMPACT OF COVID-19 ON STOCK MARKET”

Project Report Submitted to Bengaluru North University Partial

Fulfilment of The Requirements for The Award of The Degree In

MASTER OF COMMERCE
Bengaluru North University

SUBMITTED BY

ANUSHA R

(REG NO: CM194405)

UNDER THE GUIDANCE OF

Mrs. REVATHI G Mcom. MPhil.

Assistant Professor, Department of Commerce

SOUTH EAST ASIAN COLLEGE OF SCIENCE, COMMERCE & ARTS

K.R. PURAM BENGALURU-560049

2020-2021
 H. O. D CERTIFICATE

This is to certify that ANUSHA R a bonafide student of final year M.COM

bearingRegister. No. CM194405 has completed a project titled " A study
on Impact of covid-19 on stock market” This project was completed and
carried out at the stipulated time period

Place:Bengaluru HEAD OF THE DEPT

Date:
 GUIDE CERTIFICATE

The is to certify that ANUSHA R Reg. No CM194405 student of M.com has

successfully completed the project on “A STUDY ON IMPACT OF COVID-19 ON
STOCK MARKET” It is an independent study carried out under my provision and
guidance in the partial fulfilment for the award of degree of Master of
Commerce of Bengaluru North University. She has attended all the required
guidance session held.
This dissertation based on an original project study and has not formed the
basis for the award of any other Degree or Diploma of any University or
institution.

Date:
PROJECT GUIDE
Place:Bengaluru Mrs. REVATHI G Mcom. MPhil.
ASSISTANT PROFESSOR
DEPARTMENT OF COMMERCE
 STUDENT DECLARATION
I am ANUSHA R here by declare that the study titles, “ A STUDY
ON IMPACT OF COVID-19 ON STOCK MARKET” During the
academic year 2020-2021 submitted in partial fulfilments of the
requirement for the award of the degree in Master of Commerce of
Bengaluru North University. It is an original work carried out by me under
the supervision and guidance of
Assistant Professor Department of Commerce, South East Asian College
of Science, Commerce and Arts.
I also declare this project work is the result of my own efforts and as
not been previously submitted to any other university or institution for the
award of any other degree or diploma.

Date: ANUSHA R
Place: Bengaluru (Reg No: CM194405)
 ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude to

Dr.T.N MUTTHE GOWDA, Principal, SEA College of Science, Commerce
andArts, for having provided me an opportunity to work on this project.

It’s my pleasure to convey my sincere thanks to guide Mrs. Revathi G

Department of Commerce and all other staff members of the department for
providing an excellent academic climate in the institution that has made this
endeavour possible.

My sincere thanks to my parents, friends and all those who are helped me
in the successful completion of my project.

Date: ANUSHA R
Place: Bengaluru (Reg. No: CM194405)
 CONTENTS:

CHAPTERS PAGE NO

01 INTRODUCTION 1-19

02 REVIEW OF LITERATURE 20-2

03 RESEARCH METHODOLOGY 29-37

04 38-39
COMPANY PROFILE

05 DATA ANALYSIS AND 40-64

INTERPREATATION
SUMMARY OF FINDINGS,
CONCLUSIONS AND
06 65-71
RECOMMENDATIONS

07 72
BIBLIOGRAPHY
 LIST OF GRAPHS

GRAPH GRAPH OF THE TABLES PAGE

NO NO
5.1 Graph showing the details of impact of
COVID-19 on stock market. 41

5.2 Graph showing the details of impact of

COVID-19 on ITC’s stock market. 46

5.3 Graph showing the details of impact of

COVID-19 on HDFC’s stock market. 49

5.4 Graph showing the details of impact of

COVID-19 on CIPLA’s stock market. 51

5.5 Graph showing the details of impact of

COVID-19 on SBI bank’s stock market. 53

5.6 Graph showing the details of impact of

COVID-19 on Asian Paint’s stock market. 56

5.7 Graph showing the details of impact of

COVID-19 on Reliance stock market. 59

5.8 Graph showing the details of impact of

COVID-19 on TCS’s stock market. 62
 A STUDY ON IMPACT OF COVID-19 ON STOCK MARKET

CHAPTER 1
INTRODUCTION

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CHAPTER - 1
INTRODUCTION

1.1 Introduction
Stock market, equity market, or share market is the aggregation of buyers and sellers of the
stocks (shares), which represent ownership claims on businesses, these may include securities
listed on a public stock exchange, as well as stock that is only traded privately, such as shares
of private companies which are sold to investors through equity crowdfunding platforms.
In other words, stock market is the place where all the financial securities are bought or sold
by the investors or the traders in the stock exchange. Stock market plays an important role in
aiding the businesses to raise capital for enlargement and growth.

Through IPOs corporations issue share to general public and successively receive funds that
are used for numerous functions. The corporate gets listed on the stock exchange after the
IPO and this provides a chance to even a common investor or trader to take a position within
the company.

Early event in development of the stock market in India was the formation of “The native
share and stock brokers association” at Bombay in 1875, the precursor of the present day
Bombay Stock Exchange(BSE). This was followed by the formation of
associations/exchanges in Ahmedabad (1874), Calcutta (1908), and Madras (1937).

Shares

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In simple words, a share indicates a unit of ownership of the particular company. If you are a
shareholder of a company, it implies that you as an investor, hold a percentage of ownership
of the issuing company. As a shareholder you stand to benefit in the event of the company’s
profits, and also bear the disadvantages of the company’s losses.
Types of Shares:
1. Equity shares
2. Preference shares

Stock exchange means anybody of individuals, whether incorporated or not, constituted for
the purpose of regulating or controlling the business of buying, selling and dealing in
securities. A stock exchange is regulated marketplace that allows securities like bonds,
shares, future and options to be bought and sold. The securities are to be listed on the stock
exchange for trading. Stock exchange perform the role of secondary markets to allow the
change of ownership of the securities. As a primary market allows the organisation to issue
the new securities and raise funds for business activities.
In India, the two main stock exchanges are;
National Stock Exchange (NSE) and
Bombay Stock Exchange (BSE).

Bombay Stock Exchange limited was started in the year 1875 and is the oldest stock
exchange in Asia. Today more than 6000 stocks are listed and traded on this exchange.
Market capitalisation of BSE 208,44,100 crore.

The National Stock Exchange (NSE) of India the leading stock exchange in India was
incorporated in the year November 1992. On this stock exchange all types of securities can
be traded through automated electronic trading system. To establish a trading facility for
debt, equity, and other asset classes accessible to investors across the nation. To act as a

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communication network providing investors an equal opportunity to participate in the trading

system. To meet the global standards set for financial exchange markets.

Securities and Exchange Board of India (SEBI) is a statutory regulatory body entrusted
with the responsibility to regulate the India capital markets. It monitors and regulates the
securities market and protects the interests of investors by enforcing certain rules and
regulation. SEBI has a corporate framework comprising of various departments each
managed by a department head. There are about 20 departments under SEBI. Some of these
departments are corporation finance, economic and policy analysis, debt and hybrid
securities, enforcement, human resources, investment management, commodity derivatives
market regulation, legal affairs, and more.
SEBI acts as a watchdog for all the capital market participants and its main purpose is to
provide such an environment for the financial market enthusiasts that facilitate efficient and
smooth working of the securities market.

Objectives of SEBI:
* To provide a transparent and healthy platform for corporates to raise funds from the
financial markets.
* To create and enforce bye-laws for corporations and financial intermediaries.
* To protect the right of investors and ensure the safety of their investment.

A Stock Market Index has an indicative role to play. It reflects the overall health of the stock
market and which direction the market is headed. An index is also an indicator of market
sentiment. If an index is consistently performing well, that would mean the underlying
companies are performing well too, and that signals a Bull market (a positive market
sentiment). If the indices are underperforming, that would mean the underlying stocks are
also failing. That might be a sign we are in a Bear market (negative market sentiment). The
right guide to understanding a stock market index is to first know what a stock exchange

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is. The stock exchange is a place where all the tradable securities like shares, bonds,
derivatives, commodities are listed.

To be able to trade (buy and sell) these securities, they need to be listed on the stock
exchanges first and the Securities and Exchange Board of India (Sebi), our market
regulator, oversees such activities.

NIFTY 50 is a diversified 50 stock index accounting for 13 sectors of the economy. It is used
for variety of purposes such as benchmarking fund portfolios, index based derivates and index
funds. The base period selected for Nifty is the close of prices on November 3 1995, which
market the completion of one year of operations NSE’s capital market segment. The base
value of index was set at 1000.

Impact of covid-19 on the Indian stock market as a “black swan event”, that is, the
occurrence of a highly unanticipated event with an extremely bad impact. Due to the
lockdown policy adopted by the government, the factories have reduced the size of their
labour force as well as production level which disrupted the supply chain. Again because of
the uncertainity prevailing among mankind, people also reduce their ingesting habits leading
to demand side shock. Studies have also found that the entire previous pandemic had affected
only the demand chain. But this COVID-19 pandemic has affected the demand chain and
supply chain.

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SENSEX is the stock market index for BSE. It was first compiled in 1986. It is made of 30
stocks representing a sample of large, liquid and representative companies. The base year of
SENSEX is 1978-79 and the base value is 100.
Sensex comprises of the 30 largest and most actively traded stocks on BSE, providing a gauge
of India’s economy. The Sensex is one of the oldest stock indexes in India. Sensex is used to
observe the overall growth, development of particular industries, ups and downs of the Indian
economy by the investors.

Primary Market is a market where securities are offered to public for subscription for the
purpose of raising capital. A company issues security in a primary market as an Initial Public
Offering (IPO), and the sale price of such new issue is determined by concerned underwriter,
which may or may not be a financial institution. An underwriter also facilities and monitors
the new issue offering. Investors purchase the newly issued securities in the primary market.
Such a market is regulated by the SEBI. In a primary market, securities are created for the
first time for investors to purchase. New securities are issued in this market through a stock
exchange, enabling the government as well as companies to raise capital.

Secondary Market is a platform wherein the shares of companies are traded among
investors. It means that investors can freely buy and sell shares without the intervention of
the issuing company. In these transactions among investors, the issuing company does not
participate in income generation and share valuation is rather based on its performance in the
market. The secondary market for a variety of assets can vary from loans to stocks, from
fragmented to centralized, and from illiquid to very liquid. The major stock exchanges are
the most visible example of liquid secondary markets - in this case, for stocks of publicly
traded companies. Exchanges such as the New York Stock Exchange, London Stock
Exchange, and Nasdaq provide a centralized, liquid secondary market for investors who own
stocks that trade on those exchanges. Most bonds and structured products trade "over the

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counter", or by phoning the bond desk of one’s broker-dealer. Loans sometimes trade online
using a Loan Exchange.

A share of common stock gives an investor for portion of ownership of a company. The
company initially sells shares of stock to the public, and investors can then trade shares in the
secondary markets. Stock is usually owned for growth potential. This potential growth is
obtained through changes in the price of the stock.

Investor makes money while selling the stock, if its value increases. However, investor can
lose money when he sells the stocks when the price is down. Stocks offer no guarantees to
investors, but over long periods of time they have performed better than any other type of
investment. Over the long-term, stocks are the best vehicle for overcoming inflation and
building wealth.
Someone makes money in the stock market:
➢ By being very lucky in the market
➢ By listening to tips. Someone gave you the tips to buy the particular multipage stock
(you bought at a low price and sold at higher price, so got lot of profit)
➢ By doing lot of intraday traders (many have a wrong assumption that by trading
throughout the day one can make a hell lot of money)
➢ Making money by identifying the good businesses and investing in it
Business can succeed and they can fail too. Business may succeed at any rate we cannot
image the growth of the business.

For example; A company that got started for just one lakh rupees can become a thousand
crores or ten thousand crores worth company as time passes.
If you have invested 1lakh on Bajaj Finance 10years back, by now you will have 8 crores
with you.

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Even a little money of 10 thousand rupees being invested in good companies can turn into
huge money with the power of compounding. Smart investors invest in good companies with
good business and when the companies grow in terms of sales and prices, their share prices
go up and you make money.

When investment mistakes happen, money is lost. Mistakes can occur from a variety of
reasons, but they generally happen because of the clouding of the investor’s judgement by
the influence of emotions, not applying basic investment principles, or misconceptions about
how securities react to varying economic, political, and fear-driven circumstances.

Investing is a goal-oriented activity that should consider time, risk appetite and future
incomes.

An investor may be tempted to buy stocks reported “hot” in press. However, smart investors
make money to meet their financial goals within certain timeframes. Hence, they first
gather information on the market performance. Then they chart their financial destiny.

The rapid spread of the unprecedented COVID‐19 pandemic has put the world in jeopardy
and changed the global outlook unexpectedly. Initially, the SARS‐CoV‐2 virus, which caused
the COVID‐19 outbreak triggered in Wuhan city, Hubei province of China in December
2019, and with time it spread all over the globe. This pandemic is not only a global health
emergency but also a significant global economic downturn too. As many countries adopt
strict quarantine policies to fight the unseen pandemic, their economic activities are suddenly
shut down. Transports being limited and even restricted among countries have slowed down
global economic activities. Most importantly, consumers and firms have prevented their usual
consumption patterns due to the creation of panic among them and created market
abnormality. Uncertainty and risk created due to this pandemic, causing significant economic
impact all over the globe affecting both advanced and emerging economies such as the United

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States, Spain, Italy, Brazil, and India. In this context, the financial market has responded with
dramatic movement and adversely affected. Economic turmoil associated with COVID‐19
has affected the financial market severely which includes both stock and bond markets. Due
to this pandemic, there is a large fall in the price of oil and a large increase in the price of
gold. Firzli (2020), refers to this pandemic as “the greater financial crisis.” In many countries,
businesses are highly indebted, weak companies are further destabilized, and corporate debt
stands at a very high level. The global financial market risk has increased substantially in
response to the pandemic (Zhang et al., 2020). Investors are suffering sufficient losses due to
fear and uncertainty. For example, due to the impact of this pandemic, the global stock market
has struck out about US$6 trillion in 1 week from 24 to 28 February (Ozili & Arun, 2020).
The market value of standard & poor (S&P) 500 indexes declined to 30% since the COVID‐

19outbreak. According to Azimili (2020) increased uncertainty affects the required rate of
return and thus the current market value of stocks.

COVID-19 is an infectious disease caused by a newly discovered coronavirus. As reported

by the World Health Organization (WHO), most people infected with the COVID-19 virus
will experience mild to moderate respiratory illness and recover without requiring special
treatment (WHO, 2020). The first case of COVID-19 was confirmed in Wuhan city in Central
China on 31 December 2019. Later, in January 2020, the WHO declared the COVID-19
outbreak a public health emergency of international concern. After the 13-fold spread of the
deadly COVID-19 cases outside China, the WHO declared COVID-19 a pandemic on 11
March 2020 (Cucinotta & Vanelli, 2020). However, the WHO guidelines on spread and cure
keep changing regularly due to a lack of sufficient scientific knowledge about COVID-19.
Most recently, Banik et al. (2020) suggested that the COVID-19 fatality rates differ across
countries and factors; for instance, the public health system, population age structure, poverty
level and bacillus Calmette–Guérin (BCG) vaccination are powerful contributory factors in
determining fatality rates

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Smart investors make their money grow by investing periodically. The two ways in which
they do this are:
➢ By using a part of their saving to buy assets that shows a growth potential such as
stocks
➢ By distributing other part of their saving among their existing poll of investments
In stock market, patience is the key factor of success. Smart investor do not react to the daily
up and down movement of their investments in the market. They are not upset with the effect
of daily gains or losses on their financial goal. They understand that their investment need
time to grow and they look at long-term gains patiently.

When market falls your portfolio comes down and at the same point of time you have to exit
as you need fund, you will take a loss and exit. If your portfolio is too heavy you can hedge

it to any future and options instrument. But if you are investing month by month then that
will be a good opportunity as market is going to come up. We have always seen it in the
history.

We have observed this trend in some people that they work in the IT industry and they end
up buying all IT companies. At certain point of time one industry can specifically not perform
well even if economy is performing well. Then you will lose money. Because the more you
are staying in the market concentrated with just one sector it will become difficult to revive
that sector in one or two years, then you end up losing patience and lose money. This is called
industrial risk.

Investing in stock market is investing in business and that business can fail anytime or go
bankrupt or if goes into real trouble it can become zero. Any business can get shut anytime;
there is no wrong in it. It has happened always and can happen with me and you. So you
should realise that one company may fail anytime and if you have invested in just one or two
stocks. There are high chances of losing money.

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So you have to learn how to diversify your portfolio, so that even if such things happen your
portfolio still does better.

Learn the basic of business, basics of industry sectors and identify how to analyse good
companies. If you really don’t want to lose money in the stock market try to become a value
investor. I know this is the truth and I believe in it.

Corona virus (also called COVID-19) is believed to have been originated from Wuhan, China.
It is a respiratory virus which primarily spreads through droplets generated by an infected
person when he sneezes or coughs or through droplets of saliva or discharge from the nose.
One third of global population is under lockdown on account of corona virus pandemic. More
than on 200k people have lost their lives and another over 2 million have been infected by

this virus across the globe[15]. Industry across the whole world is operating under the fear
of collapse of global financial markets. In India, the economic growth has been very sluggish.
Now because of lockdown, unemployment has increased, interest rates have been reduced
and even the stock market has become highly volatile. Although number of people affected
from corona virus in India is relatively low in comparison to other countries, but investor
sentiment is negative. Analysts believe that although the impact of Covid-19 would be
significance on India, but the country will not slip into a recession [14].

The rapid spread of the unprecedented COVID‐19 pandemic has put the world in jeopardy
and changed the global outlook unexpectedly. Initially, the SARS‐CoV‐2 virus, which caused
the COVID‐19 outbreak triggered in Wuhan city, Hubei province of China in December
2019, and with time it spread all over the globe. This pandemic is not only a global health
emergency but also a significant global economic downturn too. As many countries adopt
strict quarantine policies to fight the unseen pandemic, their economic activities are suddenly
shut down. Transports being limited and even restricted among countries have slowed down

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global economic activities. Most importantly, consumers and firms have prevented their usual
consumption patterns due to the creation of panic among them and created market
abnormality. Uncertainty and risk created due to this pandemic, causing significant economic
impact all over the globe affecting both advanced and emerging economies such as the United
States, Spain, Italy, Brazil, and India. In this context, the financial market has responded with
dramatic movement and adversely affected. Economic turmoil associated with COVID‐19
has affected the financial market severely which includes both stock and bond markets. Due
to this pandemic, there is a large fall in the price of oil and a large increase in the price of
gold. Frizzle (2020), refers to this pandemic as “the greater financial crisis.” In many
countries, businesses are highly indebted, weak companies are further destabilized, and
corporate debt stands at a very high level.
If we dwell deep into the history, there had been many different factors responsible for stock
market crash. Here is a brief of top 10 market crashes in the history. In the year 1673, it was
Tulip Mania in Netherland which crashed the market. In 1720, it was the South Sea bubble

which brought the market down in UK. I 1873, triggered by an uncontrolled speculation,
there was a great fall in the value of shares in Vienna. Even the government was not able to
control the downfall which ultimately affected the whole Europe. The biggest and most
significant crash in financial market occurred in the year 1929 in USA. In September and
early October month of 1929, the stock prices began to drop because of which panic selling
took place. On 29th October, the market lost $14 billion during the day.[18]

In the modern financial system, the biggest financial market crash occurred on 19 October
1987. This crash began in Asia, intensified in UK and ended with Dow Jones. The industrial
average of Dow Jones came down to 22.6% for the day, which is still considered as the
biggest downfall in percentage terms. In the year 1997 in Thailand financial market, the
foreign investors lost confidence because of country’s debt condition which led to crisis in
Asian stock market in 1998. The Dotcom bubble burst in the year 2000, where at the peak of
NASDAQ index at 5048.62 on 10th March 2000, the big IT giants like Dell and Cisco sold

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their stocks. This action triggered panic selling in investors and the market lost 10% of its
value. By the year 2002, investors had lost $5 trillion in this Dotcom bubble crash. US
financial crisis in the year 2008 is known to everyone. With fall of Lehman Brothers, the
financial market in US collapsed very badly. This led to the fall in the global financial market.
Again, the flash crash scam which happened on 6 th May 2010 in US lasted for nearly 36
minutes only. It erased billions of dollars from US stock market. Last in the series is Chinese
market crash which happened in the year 215-16. In July 2015 because of chaotic panic
selling, approximately $3 trillion worth of shares were wiped out in a period of just three
weeks [18].

The outbreak of coronavirus has caused a pandemic of the respiratory disease (COVID-19)
for which vaccines and targeted therapeutics for treatment are unavailable. The pandemic
caused major concern for public health as well as the economy of the world. The COVID-19
is the acronym used for coronavirus disease 2019. This virus causes a pneumonia of unknown

cause first directed in Wuhan, China, and first reported to the World Health Organisation
(WHO) on 31 December 2019. An unanticipated disease called coronavirus disease 2019
(COVID-19) has spread worldwide since the end of 2019. In December 2019, Wuhan , a
central city in china, reported the first COVID-19 case. On 3 January 2020, the Wuhan Health
Committee reported 44 cases of viral pneumonia of unknown cause.

The World Health Organisation announced the official designation of this deadly virus on
February 11, 2020. On march 11, it declared COVID-19 a pandemic, pointing to over
1,80,000 cases of the coronavirus illness in 100 countries and territories around the world and
the sustained risk of further global spread (time 2020).

India is country with the second largest population in the world. As per World Bank data,
India is home to 176 million poor people and also has lowest ranks in cleanliness and medical

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facilities all over the world. And it will become a disaster if COVID-19 is spreading to its
population. But India was far behind and the first case was reported on 30 January, 2020; As
a further precaution, all outbound trains and flights were stopped. The government continues
to adopt various public health policies, such as travel restrictions, curfews and school closures
to prevent the spread of the epidemic. By 17 April, 14,376 people died. Without better
standards of living and public health, it was major concern for the Government of India under
Prime Minister Narendra Modi, who announced and ordered national wide lockdown for 21
days on 24 March, 2020 for preventing the spreading of the virus, and on 14 April 2020, the
Prime Minister extended the nationwide lockdown until 3 May.

In the purpose of containing the COVID-19 pandemic, many countries around the world have
adopted several drastic measures such as imposing social distancing, avoiding unnecessary
travel, and ban on congregations. By the end of March 2020, more than 100 countries around
the world had already undertaken several lockdown restrictions impacting negatively their
social and economic activities.

The COVID-19 rapid outbreak and rigorous containment measure implemented worldwide
have severely affected the level of global economic activities, The International Monetary
Fund’s April 2020 World Economic Outlook (WEO) projects the global economy to contract
sharply by -3% in 2020, much worse than during the 2008-09 financial crisis. Growth in the
Middle East and Central Asia region is projected to fall from 1.2% in 2019 to -2.8% in 2020.

Lower than growth rates during the 2008 global financial crisis and oil price shock. IMF
forecasted reveals also that GDP growth will be severally affected in 2020.

Coronavirus has particularly affected financial market all over the world. It created an
unprecedented level of risk, causing investors to suffer significant losses in a few days.

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To provide an understanding of how the coronavirus health crisis has affected the stock
markets, then this study investigates the impact of the COVID-19 outbreak on the daily
returns of the major stock market indices like Sensex and Nifty over the period from February
28 2020 to March 24 2020.

On 28 February 2020, Sensex lost 1448 points and Nifty fell by 432 points due to growing
global tension caused by coronavirus. Both BSE and NSE fell for the entire five days of the
week ending with the worst weekly fall since 2009.

On March 4 and 6, markets fell by around 1000 points and several crores of wealth was wiped
out. On 6 March 2020, Yes Bank was taken over by RBI under its management for
reconstruction and will be merged with SBI. This was done to ensure smooth functioning of
the bank as it was struggling for couple of years to come up with heavy pressure due to
cleaning of bad loans.

On 9 March 2020, the Sensex fell by 1,941.67 points, while Nifty-50 broke down by 538
points. The fear of COVID-19 outbreak has created havoc all over the globe and India is no

exception. Further, the recent Yes Bank crisis also made the markets fell. The markets ended
in red with Sensex closing on 35,634.95 and Nifty-50 on 10,451.45.

On 12 March 2020, the Sensex fell by 2919.26 points (-8.18%), the worst continuation of the
week in the history while Nifty-50 broke down by 868.25 points (-8.30%). Sensex ended to
33-month low of 32778.14.
However, the Sensex continued to fall straight for 4 continuous days till 19 March 2020,
losing 5815 points during the period.

On 23 March 2020, Sensex lost 3,934.72 points (13.15%) and Nifty plunges 1,135 points
(12.98%) at 7610.25 as coronavirus-led lockdowns across the world triggered fears of a

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recession. These are now the lowest levels since 2016. It's witnessing the biggest weekly loss
since October 2008, as the increasing number of coronavirus cases in India as well as
globally.

Traders began to sell their shares out of fear, and as a result of a market wide, circuit breaker
was triggered four times in March. The breaks where made for 15 minutes each in the hope
that situation would calm down. Every pandemic is unique and it is unlikely expect the same
results, but direction and movement can be predicted which is important for a timely response.
A recent occurrence of pandemic as created a supply and a demand stock which is
significantly different in comparison with other crises. Starting with the supply side
reductions due to the astonishing closures of factories and labour shortages, the global
economy simultaneously affected by the demand side stock with an immediate reduction in
consumer spending. This stock has ultimately resulted in shifting aggregate supply and
aggregate demand downward and consequently, in reducing national and global gross
domestic products.

COVID caused a huge stock to the global economic including commodity prices as well as
the stock market. With the implementation and forecasting price movement, it is expected to

make a prompt and significant contribution in terms of understanding and responding to the
impact of the COVID-19 pandemic on the global economy. This approach allows more
effective predictions during pandemic and it will help with lowering the negative impact of
COVID-19 on the financial market by providing experts with addition information and tools
in their decision making .

This Pandemic COVID-19 affected the economies of the world and India was also among
those nations. Due to the lockdown ordered by the government of India, everything came to
halt in this busiest country. The crashing of the global market economy, major drop in oil
prices, and increasing unemployment are some of the impacts of the pandemic COVID-19

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that affected almost all countries in the world. India was also not far behind to get the impact
of COVID-19 on their economic growth, development, economy and stock market. India has
a robust stock market that reacts and responds well to the global situation. The first case was
reported in India on 30th January and the lockdown ordered on 24 March, 2020, that was a
gap of almost 53 days that was also a matter of concern; what if the Government had ordered
the lockdown earlier? It may have slowed the spreading of the virus in the population. How
did the stock market respond to this nationwide lockdown? In this study, the influence of the
lockdown due to COVID-19 on the stock market is explained with the semi-strong form of
market efficiency hypothesis. This study measured how rapidly security prices respond to
announcements of the lockdown due to COVID-19. According to semi-strong Efficient
Market Hypothesis, current market prices not only reflect information about historical prices
of stocks, but also reflect information, which is publicly available. In semi-strong form of
market efficiency, there can be some lag time before the price fully reflects all available
information. This time lag can vary depending on the market, on the individual security, and
the way in which information is shared. The present study attempts to gather evidence in
support (if any) of the semi-strong form of EMH in the Indian stock market.

Although there is a limited current literature related to the impact of COVID-19 on the
financial markets the existing empirical studies have provided an exciting result. Baret et al.

(2020), in their research on financial markets and banks, have found that there is a fall in the
share of oil, equity, and bonds throughout the world as a result of the COVID-19 pandemic.
Social distancing measures adversely affected the productivity of the companies and brought
about a decrease in revenue, higher operating cost, and also cash flow challenges to the
companies. In Europe, The Financial Times Stock Exchange 100 index witnessed a sharp 1-
day fall since 1987.

Gradually the worst effect of the pandemic spread to the emerging economy too. If we
consider the financial market pf the emerging economy is worst hit by the collapse of oil

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prices. The top leading emerging economies such as Brazil, Russia, and Mexico gradually
moved towards hard mobility restrictions that will bring down the emerging economies to a
recession of 1% in 2020.

Despite the several literatures on the impact of COVID-19 on the stock market of the entire
economy, there market of the entire economy, there is limited study on it especially in the
case of an emerging economy. To shed light on this aspect, this paper attempts to investigate
the impact of COVID-19 on the two important stock market of India.

Glosten-Jagannathan-Runkle (GJR) generalised introgressive conditional heteroscedasticity

(GJR GARCH) model is used to make the study more significant in terms of volatility in
stock index prices due to the outbreak of the pandemic and lockdown policy adopted by the
Indian Government. Major findings of the study reveal the volatile nature of BSE Sensex and
NSE Nifty, the two prominent stock market of India.

This paper is organized as follows. Section 1 starts with an introduction, Section 2 represents
a literature review, Section 3 describes the sources of data and methodology, Section 4 shows
results and discussion, and Section 5 ends with the conclusion.

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CHAPTER 2
REVIEW OF LITERATURE

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LITERATURE REVIEW

WHO declaration of COVID-19 as a pandemic, stock markets across the world started
plummeting. A number of COVID-19 studies investigating the stock price reactions
documented the evidence of panic trading and increased volatility in national and
international stock markets. Due to exacerbated fear and panic trading, the National Stock
Exchange (NSE) and Bombay Stock Exchange (BSE) halted trading using a circuit breaker
on 13 March and 23 March 2020, two times within 15 days. In March 2020, the US stock
market witnessed the circuit breaker four times in 10 days (Economic Times, 2020). The
majority of the stock markets reacted negatively to the COVID-19-induced crisis.

The COVID-19 is causing huge impact on the financial markets around the world.
Dramatic reactions to the pandemic were observed during the virus outbreak. Financial
reports show spectacular losses recorded by major stock market indices in the world due to
the COVID-19 pandemic sweeping across the globe.
Stock markets in many regions are moving up and down with the news of COVID-
19 and related control measures or stimulus packages implemented by government, such as
direct fiscal support or decrease in interest rates. These dramatic changes have triggered the
interest of many researchers around the world.

The effect of the COVID-19 pandemic on the stock market, Al-Awadhi et al.
(2020) employ a panel regression approach using two measurements: (1) daily growth in total
confirmed cases and (2) daily growth in total deaths. The results provide evidence of a
significant negative effect of both measurements on stock returns across all companies.
Further tests suggest that some sectors performed better than others during the COVID-19
outbreak, specifically, information technology and medicine manufacturing sectors. Their
findings indicate also that the returns of B-shares (designed for foreign investors) and high

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market capitalization stocks are more strongly affected by the COVID-19 pandemic than A-
shares (mainly traded by retail investors) and low market capitalization stocks.

Stock Market Crash in History Stock Market Crash is a sudden decline of stock or indices
across a major cross-section of stock market, resulting in a significant loss of paper wealth.
Crashes are come from panic selling in particular stock or indices as much as by underlying
economic factors. Other major stock market crashes include: • Stock Market Crash of 1973-
1974 • Black Monday of 1987 • Harshad Mehta Scam • Dot-com Bubble of 2000 • Stock
Market Crash of 2008 • COVID19 Crash (Recent)

Liu et al. (2020) analyse the immediate and the short-term impact of the COVID-19 outbreak
on 21 leading stock market indices in major affected countries including Japan, Korea,
Singapore, the USA, Germany, Italy, India and the UK etc. They applied an event study
method and used data on daily closing prices of the stock market indices from February 21,
2019 to March18, 2020. Results suggest that the COVID-19 outbreak has impacted
negatively and significantly the stock market returns of all affected countries and areas. In
addition, findings indicate that COVID-19 have significant adverse effects on major stock
indices performances with those in Asia suffering a greater decrease in terms of abnormal
returns.

Ramelli and Wagner (2020) examine the market reactions to the COVID-19 on the
international trade and financial policies of the firm and found a negative consequence for
internationally-oriented US firms, especially those with China exposure and the US; markets
moved feverishly when the virus spread across Europe and the US. The author concluded
how the health crisis caused the economic crisis that amplified through various financial
channels.

Zhang et al. (2020) employ simple statistical analysis to explore the relationship between
stock market risks and the COVID-19 outbreak in global financial markets. They used stock

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market data of the top 10 infected countries by number of confirmed cases (together with
Japan, South Korea and Singapore) up to March 27, 2020. They found that the pandemic has

led to great risk and uncertainty in global financial market. The risk levels of all the countries
has increased substantially between February and March 2020.

Harjoto et al. (2020) employ the event study method by using the WHO announcement on
11 March, 2020 and the Federal Reserve Bank announcement on 9 April, 2020 as two events
that represent the shock and the stimulus. Results show that COVID-19 caused a negative
shock to the global stock markets, especially in emerging markets and for small firms. Other
findings indicate that the US stock market experienced positive abnormal returns from the
Fed stimulus compared to other developed countries and emerging markets. Their study finds
also that the positive abnormal returns from the stimulus were garnered by the US large firms
instead of the small firms.

Vishnoi and Mookerjee (2020) observed that the stock market in Japan had dropped more
than 20% in December 2019. The stock market of Spain, Hong Kong and China also declined
to 25., 14.75, and 12.1% in their price from March 8, 2020 to March 18, 2020.

Shehzad et al., (2020) In his study, also found a harmful impact of COVID-19 on stock
returns of the S&P 500 and an inconsequential impact on the Nasdaq composite index

Gormsen and koijen (2020) used the high frequency data on the dividend futures to evaluate
the impact growth expectations. Due to the COVID-19 the dividend and GDP growth showed
downward trend in US and European countries and also found in the short run, the lower
bound on dividend growth is as severe as during the Global Crisis of 2008.

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Choudhry (2000) examined the day-of-the-week effect on seven emerging Asian stock
markets returns and conditional variance (volatility). This study used the GARCH model and
daily returns from India, Indonesia, Malaysia, Philippines, South Korea, Taiwan, and
Thailand. The data for the period from January 1990 to June 1995 are used for this study. It
found the presence of the day-of-the-week effect on both stock return and volatility. Although

both the return and volatility are not identical in all seven cases, the effect may be due to a
possible spill-over from Japanese stock. Keim and Stambaugh (1984) documented high
Friday return and low Monday return have been dubbed the “day-of-the-week” effect and the
“weekend (Monday) effect.” Berument and Kiymaz (2001) have done a study on stock market
volatility and checked the presence of the day-of-the-week effect. For this study, they used
the S & P 500 market index, within the time period of January 1973 and October 1997. They
concluded that there was a day-of-the-week effect presence in both volatility and return
equations.

Baker et al. (2020) analysed the role of COVID-19 developments in recent stock market
behaviour and compared with previous virus outbreaks. The author draw a comparison
between Bird Flu, SARS, Swine Flu (H1N1), Ebola and MERS, and COVID-19. The author
concluded that no previous infectious disease episode led to daily stock-market swings that
even remotely resemble the response in the past month to COVID-19 developments.

Ozili and Arun (2020) analyse the impact of COVID-19 on the global economy; the period
of the study started from the beginning of 2020 to March when COVID-19 spread to most of
the countries. The study used the major policies of the government like fiscal monetary
policy, public health measure, and restrictive measures that were adopted during the period
of the study. The empirical investigation used by the author to find the impact of the social
distancing policies on the economic activities and stock market indices of the country found
that restriction on internal movement and higher fiscal policy spending had a positive impact

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on the level of economic activities, although the increasing number of confirmed coronavirus
cases did not have a significant effect on the level of economic activities

Eapen et al. (2019) offer a view into a combination of multiple pipelines of convolutional
neural network and bidirectional long short-term memory units and its use for stock market
index prediction

Cepoi (2020) investigates the impact exerted by COVID19-related news on stock market
return in the top six most affected countries by the pandemic, which are the USA, the UK,
Germany, France, Spain and Italy. He employs a panel quantile regression on a balanced
panel over the period from February 3, 2020 to April 17, 2020. Results show that fake news
influence negatively the lower and the middle quantiles throughout the distribution of returns.
Other findings show that the media coverage leads to a decrease in returns across middle and
upper quantiles. Moreover, the financial contagion across companies is detrimental to returns
from 50th to 75th quantiles.

Ashraf (2020) employs a panel data analysis to examine the impact of growth in COVID-19
confirmed cases and deaths on the stock market returns after controlling for country
characteristics and systematic risk due to international factors. He uses daily COVID-19 and
stock market returns data from 64 countries over the period from January 22, 2020 to April
17, 2020. The results found show that stock markets react strongly with negative returns to
growth in confirmed cases, however response to the growth in deaths is not that statistically
significant. Other findings also indicate that stock markets react strongly during early days of
confirmed cases and then between 40 and 60 days after the initial confirmed cases.

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

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respectively showing favourable 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.

Nguyen and Pham (2018) examine the relationship between search-based sentiment and
Vietnamese stock market returns. The author concluded that the sentiment induced effect is
mainly

driven by pessimism. And optimistic investors seem to delay taking their investment action until
the market corrects itself. The author didn’t find any statistical evidence that optimism affects the
market returns, but it provides a foundation to their claim that optimistic group may be potential
investors who search with the intention to participate in the markets. Again, information plays a
key role for more participation of the new investors in the market that ultimately affects the stock
returns

Mondal (2020) has rigorously analysed 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).

Ahmar and Val (2020) predicted a short-term effect of COVID-19 on the IBEX using the
ARIMA and SutteARIMA methodology. Based on the results, they suggested that
SutteARIMA is better for predicting the impact of the coronavirus on the stock market than
ARIMA.
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The analysis is conducted in two parts. First, we perform an event study to

assess the stock market reaction to the COVID-19 outbreak. Second, we regress abnormal
returns (ARs) on the number of confirmed cased of COVID-19, trading volume, market
returns and proxies of developing and developed economies. The number of confirmed cases
Accounts for direct impact of COVID-19 on the stock market; trading volume accounts for
the market activity.

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.

Many researchers have suggested that volatility in the stock market is

highly associated with uncertainty in the market, which is the main element in any stock
market investment decision. The findings have suggested that volatility is one of the most
reliable risk predictors. Higher volatility relates to a greater chance of a bear market, whereas
lower volatility relates to greater chances of a bull market.

The higher the volatility, the higher the stock price fluctuation in the short term, so an increase
in volatility increases the risk. Lower volatility indicates that stock value does not fluctuate
much in the short term. The most commonly used measure of volatility is the standard

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deviation, but the challenge with standard deviation is its limitation, based on the assumption
that returns are normally distributed.

CHAPTER 3
RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

3.1 Research method

Research is an art of scientific investigation. Research methodology is the specific procedures
or techniques used to identify, select, process, and analyse information about a topic. In a
research paper, the methodology section allows the reader to critically evaluate a study’s
overall validity and reliability.

Research methodology should justify the design choices, by showing that the chosen methods
and techniques are the best fit for the research aims and objectives, and will provide valid and
reliable results. A good research methodology provides scientifically sound findings.

The secondary data collected from records of the companies, dealers. The data of past indices
also have been collected. The secondary data has been collected to cover every aspect of the
study. The secondary data shows the Indian stock market bourses data month wise, pre and
post COVID-19. These data used in combination as per need of the study. These data having
different merits and demerits and have serves our purpose of the research study. A variety of
secondary information sources is available to gathering data on the market place.

Research methods are specific procedures for collecting and analyzing data. Developing your

research methods is an integral part of your research design. When planning your methods,
there are two key decisions you will make.

Research is an academic activity and as such the term should be used in a technical sense.
According to Clifford Woody research comprises defining and redefining problems,
formulating hypothesis or suggested solutions; collecting, organizing and evaluating data;
making deductions and reaching conclusions; and at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis. D. Steiner and M. Stephenson in the
Encyclopaedia of Social Sciences define research as “the manipulation of things, concepts or

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symbols for the purpose of generalizing to extend, correct or verify knowledge, whether that
knowledge aids in construction of theory or in the practice of an art.”

Research is, thus, an original contribution to the existing stock of knowledge making for its
advancement. It is the pursuit of truth with the help of study, observation, comparison and
experiment. In short, the search for knowledge through objective and systematic method of
finding solution to a problem is research. The systematic approach concerning generalization
and the formulation of a theory is also research. As such the term ‘research’ refers to the
systematic method consisting of enunciating the problem, formulating a hypothesis,
collecting the facts or data, analyzing the facts and reaching certain conclusions either in the
form of solutions(s) towards the concerned problem or in certain generalizations for some
theoretical formulation.

3.2 Objectives of the study

• To understand how the Indian stock market is run, particularly as it pertains to the stocks
of pre and post COVID-19.
• To analyze the effects on performance of the stocks post COVID-19 spike in India.
• To make concrete and justifiable conclusions and recommendations based on the findings
of the study.
• To understand the volatility of the major Indian indices during the period of
COVID19 pandemic.
• To understand factors causing volatility in the stock market.
• To study on retail investors/trader’s behaviour in the stock market.
• To study investors/trader’s perception and psychology during covid -19.

3.3 Statement of the problem

Understanding conduct elements which have affect various indices due to COVID19
Pandemic. These elements are commonly categorized into these elements:
▪ Market situation

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▪ Global market situation

▪ Psychological facts

▪ Reasons for volatility

3.4 Research hypothesis

Paper discussing the causes of volatility as well as stock market performance for the selected
indices; NIFTY50 and SENSEX and that how the factor impacting that company due to
COVID19 Pandemic.
H0: COVID-19 had significant effect on volatility of Indian stock market
H1: COVID-19 did not have significant effect on volatility of Indian stock market

3.5 Scope of the study

Investor makes money while selling the stock, if its value increases. However, investor can
lose money when he sells the stocks when the price is down. Stocks offer no guarantees to
investors, but over long periods of time they have performed better than any other type of
investment. Over the long-term, stocks are the best vehicle for overcoming inflation and
building wealth.

In stock market, patience is the key factor of success. Smart investor do not react to the daily
up and down movement of their investments in the market. They are not upset with the effect
of daily gains or losses on their financial goal. They understand that their investment need
time to grow and they look at long-term gains patiently.

If you invest wisely, your stocks may significantly increase in value. In majority of the cases,
returns on stocks have always outpaced the inflation rate.
This is something which you will not always find in the case of most other investment
avenues. That’s why some people regard the stock market as the best way to build wealth.

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As the economy grows, that's economic growth creates jobs, which creates income, which
creates sales. The greater the boost to consumer demand, which drives more revenues, profit.
Investors investing stocks when economy grows.

If buying stocks on your own, you must research each company to determine how profitable
you think it will be before you buy its stock. You must learn how to read financial statements
and annual reports and follow your company's developments in the news. You also have to
monitor the stock market itself, as even the best company's price will fall in a market
correction, a market crash, or bear market.
Long-term investment would ensure that you are buying in a disciplined manner, and would
smoothen out the short-term volatility as existing in the market. Long term investment will
give you much more in return. Like in all walks of life, discipline is what will take you far
when it comes to building wealth. Long-term investment in equities leads to higher wealth
creation as it benefits from the power of compounding which helps you make money in stock
market.

3.6 Research design

This project is analysing the NIFTY 50 and fluctuations in India. The project aims to analyse
between the selected sectors for the study.
A research design is a strategy for answering your research question using empirical data.
Creating a research design means making decisions.
A well-planned research design helps ensure that your methods match your research aims and
that you use the right kind of analysis for your data.

The research design is the approach that we choose to incorporate the diverse parts of the
study in a rational and logical way so that we can attend to the research problem effectively.
It is basically the blueprint for the collection, measurement and scrutiny of data. The research

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design used in this study is empirical in nature. Only secondary data was used for this research
which was available on NSE and yahoo finance site. Authentic data related to stock prices of

different companies are always available on these sites. Quantitative as well as qualitative
methods were used to collect data of top 20 companies listed on National Stock Exchange
(NSE 50). A well-structured approach was used to analyse the data related to the stock price
of these companies.

A good research design has characteristics viz, problem definition, time required for research
project and estimate of expenses to be incurred the function of research.

Design is to ensure that the required data are collected and they are collected accurately and
economically. A research design is purely and simply the framework for a study.

That guide the collection and analysis data. In this project the two basic types of research
designs are used:

Exploratory Research:

All research projects must start with exploratory research. This is a preliminary phase and is
absolutely essential in order to obtain a proper definition of problem in hand.

On the discovery if ideas and insights. The exploratory study is particularly helpful in
breaking broad and vague problems in to smaller, more precise sub problem statements.
Exploratory research is also used to increase the familiarity with the problem under
investigation.

Descriptive Research:

It is the design that one simply describes something such as demographic characteristics of
people. The descriptive study is typically concerned with determining frequency with which

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something occurs or how two variables vary together. A descriptive study requires a clear
specification of who, what, when and why apex of the research. It requires formulation of
more specific hypotheses and the testing these through statically inference technique.

3.7 Data collection

The data was collected by two ways
1. Primary data
2. secondary data

Primary data

Primary data means one who collects first hand data. Here it was collected through
observation method like watch the market during the COVID-19 period.

Secondary data
Secondary data was used for the study. Secondary data means the data that already
available. It was collected by various sources like internet, magazines, journals, reference
books. The secondary data collected from records of the companies. The data of past indices
also have been collected. The secondary data has been collected to cover every aspect of the
study. The secondary data shows the Indian stock market bourses data month wise, pre and
post COVID-19. These data used in combination as per need of the study.

3.8 Trend analysis

A trend is the general direction at which the stock is moving. Based on
whether the market is bullish or bearish, the trends move upwards or downwards. There is
specified duration for a movement to be considered a trend, however, the longer the trend
moves (either upward or downward), the more noteworthy the trend becomes.

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Share Market Trend or equity market trend analysis is the process of

analysing current trends in order to predict the future trends. Using share market trend
analysis, you can attempt to predict if a particular market sector growing now would continue
to grow in the future. Or, will a market trend in a particular sector start a trend in another.

This process of share market trend analysis involves a lot of data, but nobody can predict the
trends accurately with 100% guarantee.

Share market trend analysis is an aspect of technical analysis that tries to predict the future
movement of a stock based on past data. A share market trend is based on the concept that
the past movements are windows to the future trends. There are three main types of share
market trends: short-term, intermediate-term and long-term.

Share Market Trend Analysis tries to predict trends in the market. If the predicted trend is
bull market run, you can ride that until there is a trend reversal. As an investor, you can make
profits if you move with the trends and not against it.

3.9 Limitation of the study

Mistakes can occur from a variety of reasons, but they generally happen because of the
clouding of the investor’s judgement by the influence of emotions, not applying basic
investment principles, or misconceptions about how securities react to varying economic,
political, and fear-driven circumstances.

Investment in stocks requires a lot of homework and research to be done.

Not to say that having to analyse a stock is a bad thing, but it simply requires more time and
effort to pick the right stock as compared to picking the right savings plan for your money.
And even then, there is no guarantee that the stock will follow the path it was predicted to.

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You could lose your entire investment. If a company does poorly, investors will sell, sending
the stock price plummeting. When you sell, you will lose your initial investment If you lose
a substantial amount of money in the stock market, it may take a long time to regain your
original investment amount.

If the price of the stock drops, then please do not unnecessarily buy back the stock at a lower
price to make average. Because of that, your entire money will get entangled in a single stock
and you may lose it too much.

COVID19 impacted also psychology on the people’s money. People’s investing and trading
technique are changed. It changed to large cap funds to small cap funds and companies and
blue-chip companies. People will think more on their short-term earnings from the market
than long term goal. They will put money after checking companies’ fundamentals data for
long term and short-term period.

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CHAPTER 4
COMPANY PROFILE

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This project focus on the impact of COVID-19 to the stock market of India. The study
examines the extent of the influence of the lockdown on the Indian stock market and whether
the market reaction would be the same in pre-and post-lockdown period caused by COVID-
19. Coronavirus (COVID-19) is not only an unprecedented human and health crisis, but it is
expected to become one of the most economically costly pandemics in recent history. Latest
financial reports indicate that the COVID-19 outbreak is severely disrupting the global
economy and financial markets. Many equity markets around the world have endured heavy
declines since the pandemic's outbreak. The reasons behind Sensex and Nifty were rising is
that investors are forward-looking and want to invest in fundamentally strong companies
amid the slowdown in the economy. The reason for this optimism is the number of measures
the government has announced to revive the economy. As a result, these securities become
very expensive and hence, Sensex and Nifty have gone up. Hence, the stock markets were
rising purely on the sentiments of the investors and the expectation of a better future.

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CHAPTER 5
DATA ANALYSIS

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DATA ANALYSIS & INTERPRETATION

NIFTY 50
NIFTY 50 is a diversified 50 stock index accounting for 13 sectors of the economy.
It is used for variety of purposes such as benchmarking fund portfolios, index based derivates
and index funds. The base period selected for Nifty is the close of prices on November 3
1995, which market the completion of one year of operations NSE’s capital market segment.
The base value of index was set at 1000.Nifty 50 is owned and managed by NSE Indices
(previously known as India Index Services & Products Limited), which is a wholly owned
subsidiary of the NSE Strategic Investment Corporation Limited. The Nifty 50 index was
launched on 22 April 1996, and is one of the many stock indices of Nifty.

The NIFTY 50 is a benchmark Indian stock market index that represents the
weighted average of 50 of the largest Indian companies listed on the National Stock
Exchange. In India, the NIFTY 50 is an index diversified across 13 sectors of the nation's
economy: financial services, information technology, consumer goods, oil and gas,
automobiles, telecommunications, construction, pharmaceuticals, metals, power,
cement and cement products, fertilizers and pesticides, and media and entertainment.

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Graph No.5.1 Graph showing the details of impact of COVID-19 on stock market.

Source: https://www.nseindia.com/

The index was in consolidation phase from 2018 to 2020 and Nifty broke 11000 in march
2020 and bearish market till may. After February, the stock market plunged downside at the
time when Corona tragedy started rooting in India. The stock market plummeted sharply. It
was a symbol of the damage caused by fear of COVID-19 pandemic. But it was started raising
even in locked down in April and the corona crisis in the country escalated too. Many had
thought that the Nifty would go down to 5000-6000 level but the Nifty settled at 9800 after

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went down till 8500. The Nifty jumped 30% from its bottom level in April. This was because
even though FIIs are withdrawing their money from the market, Indian investors have
continued to invest. Volume is not decreased in SIP. Those who had extra funds kept pouring
money into the market. Investors have been very cautious and knowledgeable since 2008. If

they invest in the stock market for long-term financial goals, they see this kind of fall as an
opportunity.
Stock market responds to future developments, the market is now slowly recovering in
anticipation of future benefits from the measures taken by the central government.

Not every investor is lucky to buy low and sell high, what If someone had invested during
the peak of February 2020 when Nifty was trading at 12000. By April 2020 within 2 months,
Nifty came down to 7500, had lost 35 to 40%.

Even though by Nifty has moved to 15000, which is almost 100% increase between April
2020 to March 2021. Many of the investors double their capital during this period. That’s
really very huge.

The COVID-19 virus pandemic upended lives and livelihoods, the global economy suffered
the deepest recession in 74 years. In terms of its regional reach, the critical position of
services, and the size of policy responses, the recession was unprecedented. The rapid
production and deployment of vaccines will allow a transition to a new post-pandemic
economy, while the COVID-19 virus will remain with us throughout 2021. In the first half of
2021, with about half a dozen vaccinations, the most ambitious global vaccination program
ever seen will be conducted. It is quite doubtful that the virus itself will go away in 2021 and
there is a possibility of occasional, minor outbreaks. However, broader antibody and antiviral
treatment availability, as well as better track-and-trace systems, would ensure that blunt 2020-
style lockdowns are no longer required.

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On March 22, the Honourable Prime Minister Narendra Modi announced a trail lockdown for
14-hour known as Janata Curfew. But the following week, India entered into a lockdown of
21 days which was later extended to more than 90 days with partial restrictions. The
announcement did not come without chaos as it caused widespread panic, especially among

lower classes of society including farmers and migrant workers because they were left
stranded and unemployed from their faraway homes, with no means of transport. With the
government announcing a 1.7 trillion rupee relief package, it was clear that a substantial

portion of the country's population would be scouring for livelihoods. It was expected that
additional support from State governments and non-governmental organizations would
broaden the aid radius. That included the distribution of free daily food in certain regions.

Regulatory changes have resulted in considerably higher capital reserves and stronger
liquidity conditions across global banks since the global financial crisis. The lack of
widespread credit booms ahead of the pandemic means that banks are better positioned to
face the threat of rising bankruptcies and high rates of unemployment. As the global economy
has recovered, commodity prices have risen sharply in the second half of 2020; these cost
rises will be driven downstream in supply chains for the next six to nine months, squeezing
margins and contributing to higher finished product prices 2021. Disruptions in the supply
chain can be slowly resolved. Then, even as aggregate demand increases, goods industries
may see conditions soften.

COVID-19-related lockdowns in early 2021, persistent customer and business caution,

declining fiscal support, and the strains of increasing public and private debt are headwinds
to robust near-term growth. However, the reopening of markets and the availability of
vaccinations will eventually spark a new wave of travel and service spending. Retail
investors rushed to the stock markets in a year marked by covid-led uncertainties, which left

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many jobless or witnessing salary cuts. Data showed that the number of people dabbling in
stocks has increased to a record high so far in financial year (FY) 2021.

According to Securities and Exchange Board of India (SEBI) data, new dematerialized or d-
mat account additions rose to an all-time high of 10.7 million between April 2020 and

January. This was an increase of more than double the new accounts opened in FY20 at 4.7
million. Around 4 million new
accounts were added, each, in FY19 and FY18. As of now, India’s total d-mat accounts stood
at 51.5 million, compared to 40.8 million at the end of FY20 and 35.9 million in FY19.

Lower cost of trades with research value addition, an industry-wide shift to online trading
has made it easy for individuals to trade. This allowed retail investors to easily start trading
when the lockdown was put into place to curb the spread of coronavirus. Investors were
rewarded for taking risks in FY2020. As mutual funds broadly underperformed the market
and volatility remained high, equity-oriented funds continue to see outflows in the last six
months.

With markets scaling new peaks, the rate of redemptions in equity funds picked up, indicating
investors were looking to book profits given the higher valuations.
But it was also the year when markets after sinking to new lows made a remarkable
turnaround. It was also the year when retail investors took to markets in droves. About 10
million new d-mat accounts were opened in 2020 as retail investors, confined to their homes,
got time to study and manage stocks.

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ITC
ITC’s initial name was Imperial Tobacco Company of India. It was established in 1910
only to manufacture cigarette and tobacco. Its first headquarter came into existence in 1928
in Kolkata. Since the 1970s, as the company had been an established one, they started to
expand their business in sectors other than cigarette and Tobacco. In 1974, the name was
changed to ITC as it was no longer just a cigarette and tobacco company.

Though it is the largest cigarette manufacturer, still it is quite famous in all age groups
and all kinds of people as its products range varies from cigarettes to agarbattis, from food
industry to hotels, stationery to personal care products. ITC has entered into the agricultural
field. It is also active in IT industry through a subsidiary ITC InfoTech India Limited.

ITC is an Indian based company. Originally based on Kolkata, west Bengal. Its
diversified business includes five segments: fast moving manufactured goods (FMCG),
Hotels, Paperboards &Packing, Agribusiness, and Information Technology.

ITC is one of India's foremost private sector companies with a market capitalization
of Rupees 2,53,580 crores. It is the seventh biggest stock in Indian stock market in terms of

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market capitalization. The current market price of the ITC stock is Rupees 205.55(AS ON
MAY 10, 2021).

Graph No. 5.2 Graph showing the details of impact of COVID-19 on ITC’s stock
market.

Source: https://www.nseindia.com/

ITC was in consolidation phase from 2018 to July 2019 , ITC share price falls 300 to 145 and
it was bearish market till may. Then the share price was moving up and down . now the share
price is moving in sideways market.

why fundamentally such a strong company like ITC is falling because, investors are least
bothered about what the company did in the past, Investors needs to know what the company
future is going to be, everyone know that Cigarettes sales contributes major income to ITC,
the FMCG business ITC trying to tap isn’t fruitful so far, ITC can’t keep paying dividends
and make investors happy if the stock price continues to erode wealth. ITC is now focusing

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more on FMCG business than the Tobacco business. ITC Management was successfully able
to convince its largest shareholder- Imperial Tobacco Company to focus more on Non-
tobacco segments. Though non-cigarette segments revenues account for 60% of total revenue
but profit for these segments is only around 35%. of total PAT. Tobacco revenue growth has
been consistently decreasing and focusing more on Environment, Social and Corporate
Governance (ESG) to satisfy a set of investors.

ITC Hotels is one of the fastest-growing hotel chains, margins in the hotel business is low or
cash burn as occupancy in the hospitality industry is an issue. Of course, we can see good
margins in this division, if it can come up with strategies including cost-cutting measures
which is much required in the hotel industry.

Leading Fast Moving Consumer Goods (FMCG) marketer in India - Established over 25
world-class mother brands within a short span of time. This is a simple game of supply and
demand. At current situation, big players are not bullish on it and they are selling and once
things change, they may start buying again and prices will start to rise. There is no soli
d reason behind the ongoing fall in ITC shares except that government has been very strict
for cigarette manufacturers.

Coronavirus led selling pressure in whole stock market is affecting ITC share and some its
own reasons also affecting the share price.

Due to Covid-19 situation market has had never seen the demand for products like handwash
or sanitizers and ITC has quickly coped up with the situation and came up with products like
Savlon Sanitizers, disinfectants, Savlon Mask and other precautionary products. 12 months
after the first lockdown, still demand for these products is ever-increasing.

Company is reducing the dependency on cigarette business and focusing towards FMCG
products. Direct to Consumer e-Com platform rolled out in key metros. Demand for Health
& Hygiene, Immunity, Ayurveda products will increase due to current situation. Company

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expanding the manufacturing capacity for processed food to increase the revenue to 10000
Cr from FMCG by 2030. The retail market in India is reached to US$ 1.1 trillion by 2020
from US$ 840 billion in 2017, with modern trade expected to grow at 20 to 25% per annum,
which is likely to boost revenue of FMCG

HDFC BANK

HDFC Bank Limited is an Indian banking and financial services company,

headquartered in Mumbai, Maharashtra. HDFC Bank is India’s largest private sector bank by
assets and by market capitalisation as of April 2021. It is the third largest company by market
capitalisation on the Indian stock exchanges.

Bank provides a number of products and services including wholesale banking,

retail banking, treasury, auto loans, two-wheeler loans, personal loans, loans against property,
consumer durable loan, lifestyle loan and credit cards.

Financial services business is a hugely profitable and growing opportunity not

only in India but also worldwide. Financial services sector is proxy to the nations growth.
HDFC bank has carefully ensured that most of its businesses are consumer-facing, corporate
business is always low margin that too cyclical in nature. Strong leader- Biggest strength
specially in initial time was HDFC group and leader like Deepak Parekh. The Business model
of HDFC bank is very good and sustainable as they have diversified the risk in Retail sector
by providing services in various fields like personal loans, home loans, auto loans, gold loans.

Graph No. 5.3 Graph showing the details of impact of COVID-19 on HDFC’s stock
market.

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Source : https://www.nseindia.com/
HDFC BANK stock was going uptrend from 2018 to January 2020 , then it was heavily falls
during COVID-19 . it was downtrend or bearish market. Now, the share price trend is uptrend
or bull market.

The COVID-19 outbreak and the subsequent lockdown in the country will have a negative
impact on the loan book of the company. Both the retail and wholesale loans can witness a
double-digit increase in NPAs. The deposits will also reduce along with interbank funds
which will impact the liquidity of the overall Indian banking system.

HDFC bank has made additional provisions of INR 7 billion, largely towards certain
corporate accounts which have a high probability of default. Most retail products are showing
an improving trend; however, there are high concerns in the Commercial Vehicle and
Construction Equipment (CE) portfolio. This is because of the halt in construction sites and
transport business due to the lockdown in the country.

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The unsecured business segment is showing improved growth. This includes personal loans
given pre-dominantly to salaried customers. Credit cards business is also witnessing an
improving trend due to corporate tie-ups.

The Indian banking sector as a whole will face increased loan defaults and liquidity crunch
due to the COVID-19 crises in the country. The recovery majorly depends on government
stimulus and liquidity infusion by RBI in the economy. HDFC bank, however, has solid
fundamentals along with sufficient provisioning to withstand the temporary setbacks. The
only concern remains is the management change during uncertain times.

HDFC Bank is India’s largest private sector lender in terms of assets. The company has been
the fastest-growing bank in India since the last decade. It is also the largest bank in India by
market capitalisation as of March 2020 and operates across 3 verticals namely Retail Banking,
Wholesale Banking and Treasury Services. The company has 3 major revenue sources which
include retail and wholesale banking, Investment banking and Treasury and Cards business.

The retail banking includes loan products, deposits and services like Insurance, Mutual funds
and Brokerage. The wholesale business includes commercial banking and transnational
banking which mostly involves wholesale loans, deposits and Tax collections for large
companies.
The Investment banking business … HDFC Bank is one of the best stocks in the Indian stock
market to invest in for a long term.

CIPLA
Cipla Limited is an Indian multinational pharmaceutical company, headquartered in Mumbai,
India. Cipla primarily develops medicines to treat respiratory, cardiovascular disease,
arthritis, diabetes, weight control and depression; other medical conditions. Cipla is a market-
leading medicine maker in India. The company has roughly 1,500 pharmaceutical products
in more than 60 therapeutic categories. Some are sold domestically, while the rest reach

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international markets in more than 150 countries. It offers prescription drugs for all kinds of
ailments -- arthritis, cancer, depression -- as well as over-the-counter drugs for colds, oral
hygiene, and skin care. Cipla leads the domestic retail pharmaceutical market. The firm also
makes bulk drugs, agrochemicals, and animal products. It has eight manufacturing plants
located throughout the country.

The confidence of patients and healthcare professionals in our products has

strengthened over the years due to consistent and timely delivery of highly dependable
products. We continue to strive to retain this confidence by diligently manufacturing high
quality medicines and implementing innovative, path breaking technologies to deliver
superior quality products.
Graph No. 5.4 Graph showing the details of impact of COVID-19 on CIPLA’s stock
market.

Source : https://www.nseindia.com/
Cipla share price shows downtrend market between 2018 to 2020. Since the start of Covid-
19 pandemic the whole Pharma Sector has bullish. Cipla share price shows uptrend or bull
market till now.

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Cipla is a fundamentally strong company with low debt, zero promoters pledge, increasing
annual revenue and strong momentum. Its book value is also continuously improving from
last 2 years. Cipla is good for long term investment. We all know that since the start of Covid-
19 pandemic the whole Pharma Sector has been bullish and it is expected of continuing this
Up-trend.

In furtherance of its responsibility to the community, Cipla is providing essential supplies,

such as medicines, PPEs, food packets, sanitizers, masks, and gloves to those engaged in
essential services like the police and public transport operators as well as individuals living
near the Company’s facilities. Cipla Foundation continues to partner with organizations on
the ground as well as with the local administration to reach those most in need.

In the this year also Pharma sector will going in new highs because of
COVID-19. Cipla has a very diversified portfolio making generic drugs and APIs. Cipla is
known for his good quality medicine at affordable price. Cipla financials Cipla financials is
very good and has good Sales and Profit growth and in the recent times Cipla has also reduce
its Debt also. Because of which this company is very important in the Indian Pharmacy
Sector. We have leveraged and invested in our manufacturing capital through facilities that
are cGMP compliant and approved globally. This has facilitated the company to attain a
global leadership position in the pharmaceutical sector.

Cipla is a really good Investment Stock epically at times when stock market is ending in Red.
I have observed that whenever stock market goes negative, Pharmaceutical Companies and
their sector performs good. Pharmaceutical Companies has been growing exponentially from
last few years and in coming years I feel that there is a lot more good for the company to
achieve in future.

SBI BANK

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State Bank of India (SBI) is an Indian multinational, public sector banking

and financial services statutory body headquartered in Mumbai, Maharashtra. SBI is the 43rd
largest bank in the world and ranked 221st in the Fortune Global 500 list of the world's biggest
corporations of 2020, being the only Indian bank on the list. It is a public sector bank and the
largest bank in India with a 23% market share by assets and a 25% share of the total loan and
deposits market. SBI Bank is the biggest public sector bank in India which is the backbone
of Financial Index. They take deposits from people and give loans to the ones who need at
higher interest. Government has a big stake in this company as a promoter which is itself a
big plus point.
Graph No. 5.5 Graph showing the details of impact of COVID-19 on SBI bank’s stock
market.

SBI Bank was in consolidation phase from 2018 to 2020 and It broke 300 in march 2020 and
bearish market till June. The share price shows uptrend or bull market.

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After February, the stock market plunged downside at the time when Corona tragedy started
rooting in India. The stock market plummeted sharply. It was a symbol of the damage caused
by fear of COVID-19 pandemic. But it was started raising even in locked down in April and
the corona crisis in the country escalated too. SBI went down till 150. The SBI stock jumped
150% from its bottom level in June. SBI is the biggest public sector bank in India which is the
backbone of Financial Index. They take deposits from people and give loans to the ones who
need at higher interest. Government has a big stake in this company as a promoter which is
itself a big plus point.

Around 2008, the stock was 201 Rs. Today it is about Rs.362. Not even gone 2x in last 10
years. Every time the stock takes an upward movement, some situation comes in which makes
a bit fall in the stock price. Worst case scenario: Due to corona, many of the loans might turn
into NPAs and it will make strain on balance sheet of SBI which can result in further downfall.
Again since it's a PSB, it will never go bankrupt.

The Indian banking sector as a whole will face increased loan defaults and liquidity crunch
due to the COVID-19 crises in the country. The recovery majorly depends on government
stimulus and liquidity infusion by RBI in the economy. The impact of COVID-19 has led to
significant volatility in global and Indian financial markets, which may persist even after
restrictions related to the pandemic outbreak are lifted. While there have been some
improvements in economic activities, the continued slowdown has impacted repayment of
loans by customers and the efficiency in collection efforts. NPAs have been killing for all
PSBs, asset qualities are bad. Loans have gone bad to worse during this time.

ASIAN PAINTS
Asian Paints Ltd is an Indian multinational paint company,
headquartered in Mumbai, Maharashtra, India. The company is engaged in the business of
manufacturing, selling and distribution of paints, coatings, products related to home decor,

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bath fittings and providing of related services. Asian Paints is India's largest and Asia's third
largest paints corporation. Asian Paints is the holding company of Berger International. The
company has come a long way since its small beginnings in 1942. It was set up as a
partnership firm by four friends who were willing to take on the world's biggest, most famous
paint companies operating in India at that time. Over the course of 25 years, Asian Paints
became a corporate force and India's leading paints company. Driven by its strong consumer-
focus and innovative spirit, the company has been the market leader in paints since 1967.
Today, it is double the size of any other paint company in India. Asian Paints manufactures
a wide range of paints for decorative and industrial use and also offers Wall Coverings,
adhesives and services under its portfolio.

Asian Paints incorporated in the year 1945, is a Indian multinational paint company
headquartered in Mumbai India. Asian Paints Ltd is India's largest Asia's third largest and
World's 9th largest paint company. The company along with their subsidiaries has operations
in 22 countries globally with 27 paint manufacturing facilities servicing consumers in 65
countries.

The company is also present in the Home Improvement and Decor segment and offers bath
and kitchen products. The company also introduced lightings, furnishings and furniture in its
portfolio. In the Health and Hygiene segment, Asian Paints offers range of Sanitizers and
Surface Disinfectants.
Graph No. 5.6

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Asian Paints is fundamentally strong company for two very strong reasons. First is their time
proof management with solid financials; and second is the impeccable hunt for new
technology.

The company is engaged in the business of manufacturing, selling and distribution of paints,
coatings, products related to home décor and also offer end-to-end painting and designing
services, colour and decor consultancy, waterproofing solutions and much more. company
provides interior walls, exterior walls, wood finishes and metal finishes. also introduced new
categories such as water proofing, wall coverings, painting tools and implements, alongside
adhesives and sanitizers and company launches 20+ new products every year. Bath Fittings
and Sanitaryware where customers can create the kitchen space and bath fitting of their choice
in their dream homes. Market share is 60% Decorative Paints and 20% Automotive Coatings
Market share and overall market share of company is 58% in India. Company has Well
diversified products to cater different customer

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The COVID-19 outbreak will impact consumption worldwide due to flattened demand and
disrupted supply chains. Government Push towards Infrastructure and support to Real estate
industry through lower Stamp duty and interest rate. Rise in Disposable income and
preference of brand for quality result. In rural India which is going to be huge opportunity for
companies in coming years. Improving demand in Automotive industry in coming years and
due to scrappage policy there will be demand for paint industry.

The slowdown in the economy directly affects the paint industry. Also, paint being a
discretionary spend item, there is a likelihood of customers putting their paint requirements
on hold for some time, thereby impacting renovation demand.

RELIANCE

Reliance Industries Limited (RIL) is an Indian multinational conglomerate company,

headquartered in Mumbai, India. RIL's diverse businesses
include energy, petrochemicals, natural gas, retail, telecommunications, mass media,
and textiles. Reliance is one of the most profitable companies in India, the largest publicly
traded company in India by market capitalisation, and the largest company in India as
measured by revenue after recently surpassing the government-controlled Indian Oil
Corporation. It is also the eighth largest employer in India with nearly 195,000
employees. On 10 September 2020, Reliance Industries became the first Indian company to
cross $200 billion in market capitalisation.

The company is ranked 96th on the Fortune Global 500 list of the world's biggest corporations
as of 2020. It is ranked 8th among the Top 250 Global Energy Companies by Platts as of
2016. Reliance continues to be India's largest exporter, accounting for 8% of India's total
merchandise exports with a value of ₹1,47,755 crore and access to markets in 108
countries. Reliance is responsible for almost 5% of the government of India's total revenues
from customs and excise duty. It is also the highest income tax payer in the private sector in
India.

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In 2006, Reliance entered the organised retail market in India with the launch of its retail
store format under the brand name of 'Reliance Fresh'. By the end of 2008, Reliance retail
had close to 600 stores across 57 cities in India.

In November 2009, Reliance Industries issued 1:1 bonus shares to its shareholders.

In 2010, Reliance entered the broadband services market with acquisition of Infotel
Broadband Services Limited, which was the only successful bidder for pan-India fourth-
generation (4G) spectrum auction held by the government of India.

In the same year, Reliance and BP announced a partnership in the oil and gas business. BP
took a 30 per cent stake in 23 oil and gas production sharing contracts that Reliance operates
in India, including the KG-D6 block for $7.2 billion. Reliance also formed a 50:50 joint
venture with BP for sourcing and marketing of gas in India.

In 2017, RIL set up a joint venture with Russian Company Sibur for setting up a Butyl
rubber plant in Jamnagar, Gujarat, to be operational by 2018.

In August 2019, Reliance added Fynd primarily for its consumer businesses and mobile
phone services in the e-commerce space.

Graph No. 5.7

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Reliance industry is fundamentally strong company for two very strong reasons. First is their
time proof management with solid financials; and second is the impeccable hunt for new
technology.

Reliance Industries Ltd., India’s largest company by market value and one that’s considered
a bellwether for the broader economy, said it hasn’t escaped a devastating new wave of the
coronavirus and warned of more pain unless the surge

“The outbreak of coronavirus (COVID-19) pandemic globally and in India is causing

significant disturbance and slowdown of economic activity. The Group’s operations and
revenue during the period were impacted due to COVID-19,” the company, led by Mukesh
Ambani, Asia’s richest person, said in a footnote in its earnings statement Friday. It added
that the group has accounted for the possible impact of the outbreak in preparing its financial
results.

The disclosure underscores the impact India’s deep humanitarian and health care crisis is
having on its citizens — billionaires or not — either through desperate pleas on social media

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for oxygen or via the earnings of large conglomerates. India has reported more than 300,000
new infections for the last nine days, making it the world’s fastest surging outbreak that can
potentially derail the nation’s economy.

Reliance, whose earnings missed analysts estimates for the March quarter, has signaled more
pain in the days ahead unless the virus wave peaks out soon.

“Fresh lockdowns will impact demand growth for fuels,” V. Srikanth, the company’s joint
chief financial officer said in the post-earnings call Friday, adding that the resurgence of
infections in end of March had hurt the business.

In an attempt to help families of employees that have lost members to COVID-19, Mukesh
Ambani-helmed Reliance Industries has announced that it will continue to pay the last-drawn
salary of the deceased employee to his or her nominee for the next five years. The company
said that it will also support the education of their children till they graduate from college.

In a letter to employees, RIL Chairman and wife Nita Ambani said that the company will
honour the promise of 'one Reliance family' and will support them. "Even though these times
may seem very bleak, always remember that you are not alone and the entire institution of
Reliance stands with each one of you and your family," stated the letter.

The company said that it will fund the tuition, hostel accommodation expenses and books for
all children of deceased employees till they graduate. The conglomerate will additionally bear
100 per cent insurance premium tariffs for hospitalisation coverage of the deceased
employee's spouse, parents and children till graduation.

Reliance quarterly profit declined as its refining unit saw lower volumes and sales, while its
retail arm struggled due to store shutdowns amid the second wave of Covid-19. The Mukesh
Ambani-led conglomerate’s profit fell 7% sequentially to Rs 12,273 crore in the quarter
ended June, according to its exchange filing. That compares with the Rs 11,889.8-crore
consensus estimate of analysts tracked by Bloomberg.

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TCS

Tata Consultancy Services (TCS) is an Indian multinational information technology (IT)

services and consulting company headquartered in Mumbai, Maharashtra, India with its
largest campus located in Chennai, Tamil Nadu, India. As of February 2021, TCS is the
largest IT services company in the world by market capitalisation ($169.2 billion). It is a
subsidiary of the Tata Group and operates in 149 locations across 46 countries.

TCS is the second largest Indian company by market capitalisation and is among the most
valuable IT services brands worldwide. In 2015, TCS was ranked 64th overall in
the Forbes World's Most Innovative Companies ranking, making it both the highest-ranked
IT services company and the top Indian company. As of 2018, it is ranked eleventh on
the Fortune India 500 list. In April 2018, TCS became the first Indian IT company to reach
$100 billion in market capitalisation[14] and second Indian company ever (after Reliance
Industries achieved it in 2007) after its market capitalisation stood at ₹6.793
trillion (equivalent to ₹7.3 trillion or US$100 billion in 2019) on the Bombay Stock
Exchange.

In 2016–2017, parent company Tata Sons owned 72.05% of TCS and more than 70% of Tata
Sons' dividends were generated by TCS. In March 2018, Tata Sons decided to sell stocks of
TCS worth $1.25 billion in a bulk deal.

TCS and its 67 subsidiaries provide a wide range of information technology-related products
and services including application development, business process outsourcing, capacity
planning, consulting, enterprise software, hardware sizing, payment processing, software
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management, and technology education services. The firm's established software products
are TCS BaNCS and TCS MasterCraft.

Graph No. 5.8

TCS stock was going uptrend from 2018 to January 2020, then it was heavily falls during
COVID-19 . it was downtrend or bearish market. Now, the share price trend is uptrend or bull
market.

To smooth the adjustment of working from home, TCS has produced a series of guidelines
which are designed to ensure employees understand the context of this period of home-
working and to provide them with practical tips to make it work for them.

TCS established India’s first software research centre, the Tata Research Development and
Design Centre, in Pune, in 1981. TRDDC undertakes research in software
engineering, process engineering, and systems research. Researchers at TRDDC also
developed MasterCraft (now a suite of digitisation and optimisation tools), a Model-driven
Development software that can automatically create codes based on a model of a software,

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and rewrite the codes based on the users' needs. The research at TRDDC has also resulted in
the development of Sujal, a low-cost water purifier, that can be manufactured using locally
available resources. TCS deployed thousands of these filters in the Indian Ocean
tsunami disaster of 2004 as part of its relief activities. This product has been marketed
in India as Tata Swach, a low-cost water purifier.

The impact of COVID-19 has led to significant volatility in global and Indian financial
markets, which may persist even after restrictions related to the pandemic outbreak are lifted.
While there have been some improvements in economic activities, the continued slowdown
has impacted repayment of loans by customers and the efficiency in collection efforts.

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CHAPTER 6

SUMMARY OF FINDINGS, CONCLUSIONS AND

RECOMMENDATIONS

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SUMMARY OF FINDINGS

6.1 Findings

The pandemic emerged on 20 December 2019, but it had not yet affected stock price because
COVID-19 had not yet globalized and the market had not responded. The fever period is the
period after COVID-19 emerged, ranging from January to March 2020. Information related
to COVID-19 had globalized and included news of virus transmission in India. This caused
a quick market response related to the case.

Stock price movement is significantly determined by market psychology. The instability of

investors’ emotions causes excessive reactions. Reaction topping causes excessive market
pressure, resulting in drastic stock price movements, both up and down. The results indicate
that investors were shocked, so they considered business to be uncertain, which caused
investors to make investment decisions. COVID-19 was used as a signal for stakeholders
when making investment decisions.

The strong correlation with the trends and indices of the global market as Nifty 50 fell by 38
per cent. The total Market Capitalization lost an astonishing 27.31% from the start of the year.
The stock market has done nothing but reflected the attitude of investors globally due to the

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pandemic. Companies have started to scale back with their spending resulting in layoffs and
unemployment.

The pharmacy industry showed a significant difference between price and volume of stock
trade before and after COVID-19 because during a pandemic, the demand for drugs is high,
which would have influenced investors making investment decisions. I have observed that
whenever stock market goes negative, Pharmaceutical Companies and their sector performs
good. We all know that since the start of Covid-19 pandemic the whole Pharma Sector has
been bullish and it is expected of continuing this Up-trend. In the upcoming 3 to 4years also
Pharma sector will going in new highs because of COVID-19.

Sectors like travel and transportation, entertainment industry, oil & gas have been the most
affected. Stocks of these companies have come crashing down more than 40%. The IT sector
has also suffered as several companies have seen a drop in their revenue due to the global cut
off on spending on technology because of the lockdown. However, there are also certain
business sectors that are immune to the impact of corona virus or if not, will be able to revive
faster than the other sectors. These sectors include healthcare, banking, telecommunications
and retail such as groceries.

The county needs to focus on attracting foreign investments and must reduce importing
products. We must encourage products made in India and support local producers This will
be a very efficient and effective approach to a renowned sustainable innovation procedure.

The RBI and the Government of India has come up with a number of reforms such as
reductions of repo rate, regulatory relaxation by extending moratorium and several measures
to boost liquidity in the system in response to the current situation and keeping in mind the
chaos the pandemic has created.

The outlook for the Stock market , looking back at its history. we know for sure that a crisis
however long doesn’t last forever. Drops in NIFTY and BSE sensitive index are temporary,

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and each dip provides investors with the opportunity to enter the market and earn a higher
return especially for those with long term horizon. Moreover, the higher the fluctuations, the
higher chances of getting better returns.

India's stock market is experiencing a major increase in its volatility, as shown by the NIFTY
AND SENSEX index were more volatile during COVID-19. During the country wide
lockdown, the regular average number of trades and the number of shares exchanged in the
equity cash market segment increased significantly.

Intraday and derivatives market [Future and Options] as it has more volatility so it contains
more risk, and it also requires a huge amount of knowledge and lose money in the stock
market just because it shows that you can get easy and high return from the stock market
through intraday and derivative markets. Once you lose money you wish to get it back, and
it’s then when you invest again where is always a possibility of losing it again. That means
many a time intraday trading becomes a trap where the trader gets addicted to gambling with
the only objective to recover its losses.

Global equity markets, including Indian markets have rallied a lot since the last market crash.
The Covid-19 pandemic is a good enough reason to witness a correction. Equity markets may
correct in the near term as there has been an increase in volatility. The probability that the
markets could go into a phase of correction is greater than going significantly higher from the
levels which we have seen sometime back. The volatility is expected to continue for some
time,"

6.2 CONCLUSIONS
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The COVID-19 pandemic has affected the global economy of which India is a big participant.
India is the country with the second largest population in the world, so the pandemic is
especially dangerous for India. The COVID-19 affected almost all stock markets around the
world. The world stopped due to the virus outbreak and it pushed the world into the great
crisis of the century. The total lockdown and social distancing is the only solution for
preventing for spreading of the virus. India also announced the lockdown as a protective
measure, but India announced a little bit late and this was evident through the pre-lockdown.
The announcement of the lockdown was taken positively by the stock market that was
reflected in the stock market response. the lockdown has a positive impact on the stock market
performance.

On one hand, crises may be associated with opportunities. COVID-19 is an important cause
for market inefficiency, creating profitable opportunities for investors. They seeking to
maximize returns may need to pay close attention to fundamental and future growth of
companies before taking any decisions in the stock market. Smart investors taking huge
returns, Most of the investors double their investments within one year in stock market.

6.3 Recommendations
Do not invest all the money in a single stock. Invest in at least 5 different shares. Investing in
more stock reduces the possibility of loss. A well-diversified portfolio will provide most of
the benefits. Investors should invest in more than 5 stocks in order to diversify the risk and
reduce unsystematic risk.

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Never behave like a crowd, because once the fears spread in the stock market people start
selling stocks without any reason. When fear in the market goes away, the stock price goes
up again and, in the past, it is only loss to you.

Investor should examine the market on a regular basis in order to select a right stock in their
portfolio, so that they can minimize the risk and maximize returns. Learn the direction of the
market with the help of charts and investing according to the direction of the market.

Stock prices rise and fall second-by-second. Individuals tend to buy high, out of greed, and
sell low, out of fear. The best thing to do is not constantly look at the price fluctuations of
stocks, just be sure to check in on a regular basis.

If the price of the stock is increasing very fast and the fundamentals of that stock are not
correct and the trading volume in the daily market is very low. Suppose that after some time
the Downtrend starts, then the speed of the stock’s price drops very fast. Please invest in those
stocks are good in fundamentals and trading volumes.

Do not blindly follow stock recommendation tips, research. Before buy a stock analyse
market and fundamental of company. Most of these suggestions and ideas have failed. In the
market, it has a lot of people who are misguiding you.

The stock market allows you to sell your stock at any time. Economists use the term "liquid"
to mean you can turn your shares into cash quickly and with low transaction costs. That's
important if you suddenly need your money in a hurry. Since prices are volatile, you run the
risk of being forced to take a loss.

Investing in large cap, mid cap, and small cap companies. The term "cap" stands for
capitalization. It is the total stock price times the number of shares. It's good to own different
size companies because they perform differently in each phase of the business cycle.

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Investing in large cap has low risk and medium returns, small cap has high risk and huge
returns.

Bibliography

Security Analysis And Portfolio -Sikkim Manipal University

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https://m.economictimes.com/definition/stock-market/amp
https://www.investopedia.com/terms/s/stockmarket.asp
https://en.m.wikipedia.org/wiki/Stock_market
https://www.karvyonline.com/knowledge-center/beginner/how-to-invest-in-stock-market-with-little-money
https://en.m.wikipedia.org/wiki/COVID-19
https://en.m.wikipedia.org/wiki/COVID-19_pandemic_in_India
https://www.coatingsworld.com/issues/2020-08-01/view_india_asia_pacific_reports/covids-impact-on-the-
indian-paint-industry/
http://businessworld.in/article/Impact-Of-COVID-19-On-The-Indian-Stock-Markets/11-05-2020-191755
https://www.quora.com/How-come-the-opportunities-are-always-available-in-stock-market
https://www.investopedia.com/articles/00/082100.asp
 A STUDY ON IMPACT OF COVID-19 ON STOCK MARKET

PROJECT WORK DAIRY

Name of candidate: ANUSHA R

University Reg. No: CM194405
Name of the faculty guide: Mrs. REVATHI G Mcom. MPhil Project
Title: “A STUDY ON IMPACT OF COVID-19 ON STOCK MARKET”

DATE TOPIC SIGNATURE SIGNATURE

DISCUSSED OF THE OF THE
STUDENT GUIDE
MAY 17YH Title discussion
2021
Finalization of
title
Discussion and
correction of
synopsis
Submission of 1st
and 2nd chapter

Submission of 3rd
chapter and
discussion about
4th chapter
(questionnaires)
Submission of 4th
chapter
Submission of 5th
chapter
Submission of
final project