A Study on impact of exchange rate on stock price during, pre-lockdown & post lockdown

The outbreak of coronavirus has caused a pandemic of the respiratory disease (COVID19) for which vaccines and targeted therapeutics for treatment were 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 Corona Virus Disease 2019. This study would utilize secondary data from various market indices in stock screening websites. National Stock Exchange (NSE) official website is taken, and for exchanges rates Reserve Bank of India (RBI)’s official website is considered for the study. Looking into the time and money constraints non probability sampling method is used. In which convenience sampling method has been used. This study measured how rapidly security prices respond to announcements of the lockdown due to COVID-19. How NSE clashed and recovered, the correlation of exchange rates and NSE NIFTY is studied. Performance of NSE and exchange rates are studied from their particular websites. KeywordsCovid-19, Pandemic, Stock market, NSE, Forex Market, Exchange rate.

[1]  Debakshi Bora,et al.  The outbreak of COVID‐19 pandemic and its impact on stock market volatility: Evidence from a worst‐affected economy , 2020, Journal of public affairs.

[2]  S. Narang,et al.  The Outbreak of COVID-19 and Stock Market Responses: An Event Study and Panel Data Analysis for G-20 Countries , 2020, Global Business Review.

[3]  Z. Machmuddah,et al.  Stock Market Reaction to COVID-19: Evidence in Customer Goods Sector with the Implication for Open Innovation , 2020, Journal of Open Innovation: Technology, Market, and Complexity.

[4]  Kavita Chavali,et al.  Stock Market Response during COVID-19 Lockdown Period in India: An Event Study , 2020 .

[5]  Robiyanto Robiyanto,et al.  The correlation of gold, exchange rate, and stock market on Covid-19 pandemic period , 2020 .

[6]  Atul Kumar,et al.  Examining the Effect of COVID-19 on Foreign Exchange Rate and Stock Market -- An Applied Insight into the Variable Effects of Lockdown on Indian Economy , 2020, 2006.14499.

[7]  R. Koijen,et al.  Coronavirus: Impact on Stock Prices and Growth Expectations , 2020, Review of Asset Pricing Studies.

[8]  Feyyaz Zeren,et al.  THE IMPACT OF COVID-19 CORONAVIRUS ON STOCK MARKETS: EVIDENCE FROM SELECTED COUNTRIES , 2020, Muhasebe ve Finans İncelemeleri Dergisi.

[9]  Aileen L. Camba,et al.  The Effect of COVID-19 Pandemic on the Philippine Stock Exchange, Peso-Dollar Rate and Retail Price of Diesel , 2020 .

[10]  A. Maredza,et al.  Effects of Exchange Rate Volatility on the Stock Market: A Case Study of South Africa , 2013 .

[11]  Sifunjo e. Kisaka,et al.  The Causal Relationship between Exchange Rates and Stock Prices in Kenya , 2012 .

[12]  Mbutor O. Mbutor.  Exchange rate volatility, stock price fluctuations and the lending behaviour of banks in Nigeria , 2010 .