IDEAS home Printed from https://ideas.repec.org/a/ids/ijicbm/v29y2023i2p271-292.html
   My bibliography  Save this article

Impacts of pandemic-related stimulus packages on the stock market: evidence from India and the USA

Author

Listed:
  • Vineeta Kumari
  • Varun Kumar Rai
  • Dharen Kumar Pandey

Abstract

We examine the impacts of the pandemic-related stimulus packages on the stock market during the COVID-19 period and the association between returns, volatilities, and fatality rates in the two markets. We use the event study method, vector auto regression, and correlation on a sample of 947 firms, including 452 firms from BSE500 and 495 firms from S%P500. We find a significant positive impact of the stimulus packages announced by the two governments, though with a different reaction time. The volatility index is negatively associated with the market returns in both markets. However, the market returns in both nations are not correlated with the fatality rates in these nations. We also provide evidence of similar pre-COVID period returns in both markets. More negative impacts during the COVID period were noticed in India than in the USA. The market recovery period is marked with higher recovery rates in India than in the USA.

Suggested Citation

  • Vineeta Kumari & Varun Kumar Rai & Dharen Kumar Pandey, 2023. "Impacts of pandemic-related stimulus packages on the stock market: evidence from India and the USA," International Journal of Indian Culture and Business Management, Inderscience Enterprises Ltd, vol. 29(2), pages 271-292.
    • Handle: RePEc:ids:ijicbm:v:29:y:2023:i:2:p:271-292
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=131442
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijicbm:v:29:y:2023:i:2:p:271-292. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=235 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.