Corresponding Author's : Mridul Nohani

Abstract :

The COVID-19 pandemic had a significant influence on the functioning of all the impacted countries. Lockdowns were imposed, and the economy suffered greatly as a result. The tourism industry was among the worst-hit sectors, where the operations halted at one point. As a result, another industry that suffered the most was HORECA (i.e., hotels, restaurants, and catering). The lack of investor confidence during the pandemic led the stock values to fall precipitously. The purpose of this research is to, thus, determine the impact of the pandemic on the stock returns of the Indian hotel industry. A comparison with other Indian indices was done to see if the Hotel business suffered more than others. To quantify the influence on the test sector, event research methodology, ANOVA test, Beta Index, and other statistical measures were applied. According to the event study methodology, the Hotel industry produced considerable abnormal returns during the event phase. Some of the companies included in this article sustained substantial losses as a result of reduced operations, and their stock values observed changes by more than 50% as a result. There was a lack of investments given the reduced domestic and international tourism, public fear, nationwide lockdown, negative sentiments, inflated losses, and other many other factors. It is derived from the study that the adverse impact was seen on hotel stock prices, and that stocks would react similarly in the future. The research further discusses its comparison to the healthcare sector, which accrued to a high demand for vaccines and healthcare services. We establish high positive returns from the observation.

Keywords :

Covid-19, Pandemic, Stock Returns, Healthcare, Hotel Industry, Indian Markets

Article Details

Unique Paper ID: 2107

Publication Volume & Issue: VOLUME 4 - 2024 , ISSUE 2

Page(s): 27-40

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