IMPACT OF COVID-19 ON STOCK MARKET VOLATILITY

Abstract: The global pandemic caused by COVID–19 has adversely affected the economic sectors of countries universally. Indian financial markets also reacted to these disruptions, and sharp volatility was witnessed. This paper especially attempts to analyses the impact Covid-19 had on the Nifty 50 index with reference to the price movements it had across the three different phases: pre-pandemic, during, and post-pandemic. In this research, there are various things that are explored, like macroeconomic factors, investor sentiment, government policies, and external shocks, which influence the trends of the stock market and the volatility while analyzing the role of the India VIX (Volatility Index) in measuring market uncertainty. In the methodology section, this research briefly talks about the quantitative methods used to investigate the relationship between Nifty 50, India VIX, and other significant events such as lockdowns, stimulus packages, and other global news. The findings aim to offer critical insights and advice into risk management, shows a way to trade safely during crises period, and guide policymakers and investors in navigating volatility during times of economic uncertainty. Through this analysis, the study contributes to a deeper understanding of stock market behavior during crises, shedding light on resilience and adaptation in financial. Key words: Covid-19, Economic policy response, Investor’s sentiments, Nifty50, Stock market volatility