Assessing the Influence of the Russia-Ukraine War on Securities Markets: Evidences from India

Abstract

Reaction to economic and political events are not new to securities markets globally. Researchers are interested to measure the impact of those events for econometric modeling. In this paper, we have attempted to measure the impingement of the Russia-Ukraine War on Bharath  Securities Markets. Due to the strategic association with Russia, India has maintained a neutral stand in the War. The researchers have tried to trace the influence of the war between Russia and Ukraine on the Indian securities market. They have considered five sectoral indices such as Commodities, Health, Oil & Gas, Pharma, Housing and one broad market index i.e., NIFTY 50 for a period of 255 days. Log returns, descriptive measures and Paired t measures are applied to the data. It is found that on the day of the warfare declaration between Russia and Ukraine the securities returns of the all sectoral indices and the broad market index were negative. The Paired t test found that the war declaration had an impact on commodities, health, Oil & Gas and Pharma sectors except Housing and overall securities market index NIFTY50.