Does COVID-19 Cause the Spillover Volatility of Steel and Tube Companies Stock Returns and BSE Metal Index


Published: 2023-02-03

Page: 61-82

S. Baranidharan *

Presidency Business School, Presidency College (Autonomous), Bangalore, India.

S. Amirdha Vasani

Department of Corporate Secretary Ship and Accounting Finance, SRM Institute of Science and Technology, Chennai, India.

G. Chandrakala

School of Commerce and Management Studies, Dayananda Sagar University, Bangalore, India.

*Author to whom correspondence should be addressed.


COVID-19 epidemic has been impacted the growth of economic and development of industries. The steel and tube companies also suffered and down surges the financial stability and its growth uncertain. The study use the event of COVID-19 to exhibits the spillover and investors decision. The study examines the Covid-19 cause the spillover volatility of steel and tube companies stock returns and BSE metal The study focused on the steel and tube companies’ stocks returns. This study helps traders and investors of steel and tube companies’ stock returns and supports to take better investing decisions in this sector. Stock market Price and BSE metal indices were collected for the time period of two years pre-COVID [from 2018 to 2019] and two years post-COVID [from 2020 to 2021]. This study revealed that changes in the stock Prices of certain companies, namely Ratnamani Metal and Welspun Corp caused changes in the BSE metal index, before the pandemic, but post pandemic it has been found that the changes in BSE metal index caused changes in APL Apollo and Ratnamani Metal. In terms of volatility, the BSE metal index and certain selected companies were found to be highly volatile, while others were moderately volatile, both pre and post pandemic. The conclusion of the research article is that the stock returns of steel and tube companies were found to be lower than the risk, making them not suitable for long-term investment, but suitable for traders and speculators to make good profits, both pre and post COVID.

Keywords: Financial market, indices, stock exchange, investment, speculator

How to Cite

Baranidharan, S., Vasani, S. A., & Chandrakala, G. (2023). Does COVID-19 Cause the Spillover Volatility of Steel and Tube Companies Stock Returns and BSE Metal Index. Asian Journal of Economics, Finance and Management, 5(1), 61–82. Retrieved from


Download data is not yet available.


Rajamohan S, Jenefer J, Sathish A. Impact of COVID-19 on FMCG Sector. Shanlax International Journal of Management. 2021;8(4):69–74. DOI:10.34293/management.v8i4.3817

Lim CM, Sek SK. Comparing the performances of GARCH-type models in capturing the stock market volatility in Malaysia. Procedia Economics and Finance. 2013;5:478–487. DOI:10.1016/s2212-5671(13)00056-7

Bhatia P, Gupta P. Sub-prime crisis or COVID-19: A comparative analysis of volatility in Indian banking sectoral indices. FIIB Business Review. 2020;9(4):286–299. DOI:10.1177/2319714520972210

Pathak V. A Study of Measuring COVID-19 Impact on Stock Performance of Selected Sectors; 2021.

Baranidharan S, Sutha AI. Effect of Volatility and Causal Movement between Cotton Futures Price and Cotton Spot Price in Indian Commodity Market. Ilkogretim Online. 2021;20(4).


Baranidharan S, Diviya N. Empirical Relationship of Macroeconomic Variables on Stock Price Returns: Indian Stock Market and Japanese Stock Market”. Finance India. 2021;35(3):787–800.

Sikdar DA. Sector wise stock market performance during pre and post covid era. International Journal of Engineering and Management Research. 2021;11(2): 200–205. DOI:10.31033/ijemr.11.2.28

Alam MN. Department of Accounting, College of Commerce and Business Administration, Dhofar University, Alam MS, Chavali K. Stock market response during COVID-19 lockdown period in India: An event study. Journal of Asian Finance Economics and Business. 2020;7(7): 131–137. DOI:10.13106/jafeb.2020.vol7.no7.131

Akhtaruzzaman M, Boubaker S, Sensoy A. Financial contagion during COVID-19 crisis. Finance Research Letters. 2021; 38(101604):101604. DOI:10.1016/

Auerbach AJ, Gorodnichenko Y, Murphy D. Inequality, fiscal policy and COVID19 restrictions in a demand-determined economy. European Economic Review. 2021;137(103810):103810. DOI:10.1016/j.euroecorev.2021.103810

Baker SR, Bloom N, Davis SJ, Kost K, Sammon M, Viratyosin T. The unprecedented stock market reaction to COVID-19. The Review of Asset Pricing Studies. 2020;10(4):742–758. DOI:10.1093/rapstu/raaa008

Baranidharan S, Alex A. Volatility spillover of exchange rate on stock market evidence from South Africa. Asian Journal of Economics, Finance and Management. 2020;26-34.

Baranidharan S, Dhivya N. Causal influence of macroeconomics factors shock on Indian stock market: evidence from BSE index. Asian Journal of Economics, Finance and Management. 2020;39-48.

Baranidharan S, Dhivya N. Contagion Effect of Automobile Companies Stock Returns on Indian Stock Market. IPE Journal of Management. 2020;10(1):35-50.

Baranidharan S, Dhivya N, Alex A. Influence of changes of FDI and FII flows on Indian Stock Market. Think India Journal. 2019;22(14):13110-13126.

Corbet S, Hou Y, Hu Y, Lucey B, Oxley L. (). Aye Corona! The contagion effects of being named Corona during the COVID-19 pandemic. Finance Research Letters. 2021;38(101591):101591. DOI:10.1016/

Desai JM, Joshi NA. Volatility Analysis and Volatility Spillover across Equity Markets between India and Selected Global Indices. Journal of Commerce & Accounting Research. 2021;10(4).

Dharmadasa WND. The impact of macro economic variables on stock prices: Evidence from Colombo stock exchange. Journal of Commerce and Accounting Research. 2018;7(2).

Goodell JW. COVID-19 and finance: Agendas for future research. Finance Research Letters. 2020;35(101512): 101512. DOI:10.1016/

Guo M, Kuai Y, Liu X. Stock market response to environmental policies: Evidence from heavily polluting firms in China. Economic Modelling. 2020;86:306–316. DOI:10.1016/j.econmod.2019.09.028

Hillier D, Loncan T. (Political uncertainty and Stock returns: Evidence from the Brazilian Political Crisis. Pacific-Basin Finance Journal, 2019;54:1–12. DOI:10.1016/j.pacfin.2019.01.004

Ji Q, Zhang D, Zhao Y. Searching for safe-haven assets during the COVID-19 pandemic. International Review of Financial Analysis. 2020;71(101526):101526. DOI:10.1016/j.irfa.2020.101526

Karnizova L, Li J. (chris). Economic policy uncertainty, financial markets and probability of US recessions. Economics Letters. 2014;125(2):261–265. DOI:10.1016/j.econlet.2014.09.018

Kumar P, Saxena C, Gupta AK. A study on relationship between stock market returns and mutual fund flows. Journal of Commerce and Accounting Research. 2020;9 (1).

Sakthivel P, VeeraKumar K, Raghuram G, Govindarajan K, Vijay Anand V. Impact of global financial crisis on stock market volatility: Evidence from India. Asian Social Science. 2014;10(10). DOI:10.5539/ass.v10n10p86

Sharif A, Aloui C, Yarovaya L. COVID-19 pandemic, oil prices, stock market, geopolitical risk and policy uncertainty nexus in the US economy: Fresh evidence from the wavelet- based approach. International Review of Financial Analysis. 2020;70(101496): 101496. DOI:10.1016/j.irfa.2020.101496

Shruthi MS, Ramani D. Statistical analysis of impact of COVID 19 on India commodity markets. Materials Today: Proceedings. 2021;37:2306–2311. DOI:10.1016/j.matpr.2020.07.729

Zawna CV, Singh RG. Economic value added and stock price of firms in Indian stock market. Journal of Commerce and Accounting Research. 2020;9(1).