A Study to analyse effect of COVID-19 on selected IT Stock

Abstract

The aim of this research is to study how COVID-19 outbreak has affected main Information Technology shares listed with the National Stock Exchange of India. We have decided on ten IT corporations indexed with NSE and the choice became purely based available in the marketplace capitalization of the corporations. The widespread hypothecation of this observation became was the IT shares will flow towards the overall marketplace trend. The study period was classified into the pre-crisis period and the Covid-19 crisis period. The data consists of 125 daily price observations of the selected ten IT companies. The period of study is ranging from 1^st October 2019 to 31^st March 2020.The results reported that the momentum effect is persisting with IT stocks as the IT stocks are moving in accordance with the general benchmarking index. This study also signifies that companies like Wipro Limited and Mindtree Limited with a strong brand reputation seem to be sustaining in the crisis period in spite of the general falling market trend. This paper has strongly urged the need for backward integration and enhanced research and development activities to the Indian Information Technology sector for ensuring their sustainable long-run operations.