GOLD &STOCK RELATION: INVESTORS’ REACTION DURING COVID-19 OUTBREAK
GOLD &STOCK RELATION: INVESTORS’ REACTION DURING COVID-19 OUTBREAK
Author(s): Subrata ROYSubject(s): Business Economy / Management, Health and medicine and law, Financial Markets
Published by: Editura Universităţii »Alexandru Ioan Cuza« din Iaşi
Keywords: Co-integration; VAR; COVID-19; Gold; BSE; NSE;
Summary/Abstract: The present study tries to examine the relationship between stock and gold during COVID-19 pandemic along with investors’ investment preference during COVID-19 lockdown by considering three macroeconomic variables (BSE, NSE & Gold) with their daily data over a period from 30 January 2019 to 31 July 2020 under VAR environment. The time series data are normally distributed and stationary after first difference with same order of integration without co-integrated equations with optimum lag length one. The long run equilibrium relationship is absent during COVID-19 outbreak but short run association is found when lagged gold price influences gold itself. Bi-directional Granger causality exists between BSE and NSE only. The investors prefer stock investment as compared to gold during COVID-19 lockdown. Finally, the VAR models are valid and stable based on various residuals tests.
Journal: Review of Economic and Business Studies (REBS)
- Issue Year: 2020
- Issue No: 26
- Page Range: 29-52
- Page Count: 24
- Language: English
