Title: Multivariate economic analysis of the government policies and COVID-19 on financial sector

Authors: Monika Mangla; Nonita Sharma; Sourabh Yadav; Vaishali Mehta; Deepti Kakkar; Prabhakar Kandukuri

Addresses: Department of Computer Engineering, Lokmanya Tilak College of Engineering, Navi Mumbai, India ' Department of Computer Science and Engineering, National Institute of Technology (Punjab), Jalandhar, Punjab, India ' Gautam Buddha University, Greater Noida, UP, India ' Department of Information Technology, Panipat Institute of Engineering & Technology, Panipat, Haryana, India ' Department of Electronics and Communication Engineering, National Institute of Technology (Punjab), Jalandhar, Punjab, India ' Computer Science & Engineering Department, Dhanekula Institute of Engineering and Technology, Vijayawada, Andhra Pradesh, India

Abstract: The sudden pandemic outbreak of COVID-19 has led to disruption in trade, travel and commerce by halting manufacturing, industries, and all other sundry activities. Global markets plummeted, leading to erosion of around US $6 trillion within just one week during February 2020. During the same week, the S&P 500 index alone experienced a loss of more than US $5 trillion in the USA, while other top 10 companies in the S&P 500 suffered a loss of more than US $1.4 trillion. This manuscript performs multivariate analysis of the financial markets during the COVID-19 period and thus correlates its impact on the worldwide economy. An empirical evaluation of the effect of containment policies on financial activity, stock market indices, purchasing manager index and commodity prices are also carried out. The obtained results reveal that the number of lockdown days, fiscal stimulus and overseas travel bans significantly influences the level of economic activity.

Keywords: coronavirus; COVID-19; financial sector; forecasting; multivariate analysis; nifty-indices; pandemic; regression model; stringency index.

DOI: 10.1504/IJCAT.2021.120460

International Journal of Computer Applications in Technology, 2021 Vol.66 No.3/4, pp.294 - 302

Received: 21 Jul 2020
Accepted: 07 Sep 2020
Published online: 21 Jan 2022 *

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