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

Author

Listed:
  • Farhan Ahmed

    (Department of Economics and Management Sciences, NED University of Engineering & Technology, Karachi City 75270, Pakistan)

  • Aamir Aijaz Syed

    (Institute of Management, Commerce and Economics, Shri Ramswaroop Memorial University, Lucknow 226018, India)

  • Muhammad Abdul Kamal

    (Department of Economics, Abdul Wali Khan University, Mardan 23200, Pakistan)

  • Maria de las Nieves López-García

    (Department of Economics and Business, University of Almeria, 04003 Almeria, Spain)

  • Jose Pedro Ramos-Requena

    (Department of Economics and Business, University of Almeria, 04003 Almeria, Spain)

  • Swati Gupta

    (Motilal Nehru National Institute of Technology, Uttar Pradesh 211004, India)

Abstract

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

Suggested Citation

  • Farhan Ahmed & Aamir Aijaz Syed & Muhammad Abdul Kamal & Maria de las Nieves López-García & Jose Pedro Ramos-Requena & Swati Gupta, 2021. "Assessing the Impact of COVID-19 Pandemic on the Stock and Commodity Markets Performance and Sustainability: A Comparative Analysis of South Asian Countries," Sustainability, MDPI, vol. 13(10), pages 1-16, May.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:10:p:5669-:d:557254
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    Cited by:

    1. Min Bai & Ly Ho, 2023. "How do gold and oil react to the COVID-19 pandemic: A review," Energy & Environment, , vol. 34(7), pages 2876-2902, November.
    2. Ravindra N. Shukla & Vishal Vyas & Animesh Chaturvedi, 2024. "Leverage adjustment analytics: effect of Covid-19 crisis on financial adjustments of Indian firms," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 48(2), pages 513-543, June.
    3. Zaheda Daruwala, 2022. "Reactive or Immune: Stock Market Behaviour During Subsequent Waves of the COVID-19 Pandemic," International Journal of Economics and Financial Issues, Econjournals, vol. 12(6), pages 92-106, November.
    4. Ghulam Ghouse & Aribah Aslam & Muhammad Ishaq Bhatti, 2021. "Role of Islamic Banking during COVID-19 on Political and Financial Events: Application of Impulse Indicator Saturation," Sustainability, MDPI, vol. 13(21), pages 1-17, October.
    5. Isabel Carrillo-Hidalgo & Juan Ignacio Pulido-Fernández & José Luis Durán-Román & Jairo Casado-Montilla, 2023. "COVID-19 and tourism sector stock price in Spain: medium-term relationship through dynamic regression models," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 9(1), pages 1-24, December.
    6. Beata Bieszk-Stolorz & Iwona Markowicz, 2021. "Decline in Share Prices of Energy and Fuel Companies on the Warsaw Stock Exchange as a Reaction to the COVID-19 Pandemic," Energies, MDPI, vol. 14(17), pages 1-17, August.
    7. Aamir Aijaz Syed & Farhan Ahmed & Muhammad Abdul Kamal & Juan E. Trinidad Segovia, 2021. "Assessing the Role of Digital Finance on Shadow Economy and Financial Instability: An Empirical Analysis of Selected South Asian Countries," Mathematics, MDPI, vol. 9(23), pages 1-15, November.
    8. Dhingra, Barkha & Saini, Mohit & Yadav, Mahender & Kumar, Gaurav & Kumar, Pankaj, 2025. "Exploring global financial interdependencies among ASEAN-5, major developed and developing markets," The Journal of Economic Asymmetries, Elsevier, vol. 31(C).
    9. Aamir Aijaz Syed & Farhan Ahmed & Muhammad Abdul Kamal & Assad Ullah & Jose Pedro Ramos-Requena, 2022. "Is There an Asymmetric Relationship between Economic Policy Uncertainty, Cryptocurrencies, and Global Green Bonds? Evidence from the United States of America," Mathematics, MDPI, vol. 10(5), pages 1-15, February.
    10. ATM Adnan & Sameer Al Johani, 2023. "Stock Market Reaction to COVID-19: A Cross-Sectional Industry Analysis in Frontier Market," IIM Kozhikode Society & Management Review, , vol. 12(2), pages 157-181, July.
    11. Fiaz Ahmad Sulehri & Noor Fatima, 2022. "Nexus Among Commodity Markets And Stock Markets In Asian Countries Before & During Covid," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(4), pages 1-14.
    12. repec:ers:journl:v:xxiv:y:2021:i:4:p:977-996 is not listed on IDEAS
    13. Aamir Aijaz Syed & Assad Ullah & Muhammad Abdul Kamal, 2024. "Impact of COVID-19 and lockdown stringency on foreign institutional investment in India: evidence from wavelet coherence and spectral causality approaches," Quality & Quantity: International Journal of Methodology, Springer, vol. 58(3), pages 2433-2452, June.
    14. Krzysztof Dmytrów & Joanna Landmesser & Beata Bieszk-Stolorz, 2021. "The Connections between COVID-19 and the Energy Commodities Prices: Evidence through the Dynamic Time Warping Method," Energies, MDPI, vol. 14(13), pages 1-23, July.
    15. Masagus M. Ridhwan & Solikin M. Juhro & Affandi Ismail & Peter Nijkamp & Kelvin Ramadhan Hidayat, 2024. "Did COVID-19 Disrupt the Stock Market Return and Volatility? A Meta-Analytic Approach," Bulletin of Monetary Economics and Banking, Bank Indonesia, vol. 27(1), pages 25-82, March.
    16. Arhan Sheth & Tulasi Sushra & Ameya Kshirsagar & Manan Shah, 2022. "Global Economic Impact in Stock and Commodity Markets during Covid-19 pandemic," Annals of Data Science, Springer, vol. 9(5), pages 889-907, October.

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