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

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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.


Abstract

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 https://globalpresshub.com/index.php/AJEFM/article/view/1764

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