Did Lockdown Affect Stock Returns of Airline Sector in India ?
Samrat Banerjee1, Vidisha Agarwalla2
1Prof. Samrat Banerjee, Assistant Professor, Department of Commerce, St. Xavier’s University, Kolkata (West Bengal), India.
2Vidisha Agarwalla, Department of Commerce, St. Xavier’s University, Kolkata (West Bengal), India.
Manuscript received on 14 October 2022 | Revised Manuscript received on 26 October 2022 | Manuscript Accepted on 15 November 2022 | Manuscript published on 30 November 2022 | PP: 1-8 | Volume-2 Issue-2, November 2022 | Retrieval: 100.1/ijef.D2516111422 | DOI : 10.54105/ijef.D2516.111422
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Abstract: In this study, we will analyze the impact of lockdown on stock returns of airline industry in India. For this purpose, market model of event study methodology is used. The event window of 21 days have been taken to show the impact on stock returns due to announcement of lockdown. We will also understand how investors react at the time of fall in the stock market in terms of one industry and the impacts of lockdown in the economy of India. We will investigate into the impact of the first lockdown on returns, abnormal returns and cumulative abnormal returns for all three companies of the airline sector viz., GLOBALVECT.BO, SPICEJET.BO and INDIGO.BO. Data for this research was obtained from the official website of National Stock Exchange (NSE) . Conclusions were drawn based on this data and it was found that the lockdown had a more significant impact on abnormal returns of Indigo compared to that of Spice Jet and Global Vectra. Further, it can be inferred that the impact of lockdown on the average abnormal return and the cumulative average abnormal returns of the airline sector was highly significant, which displayed more volatility in stock prices.
Keywords: Lockdown, Stock Returns, Adverse Reaction, Artificial Intelligence, Airline Sector
Scope of the Article: Corporate Finance