Global Journal of Commerce & Management Perspective
Open Access

The Lethal COVID-19 Pandemic: A Global Crisis

Li Anqi^{* *}Correspondence: Li Anqi, Department of Management Science, Tianjin University of Finance and Economics, Tianjin, China, Email:

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The deadly COVID-19 pandemic has spread rapidly over the world, causing confusion in all areas of the economy and throwing human life out of balance. It has seriously disrupted how business is conducted and put the world's economy in danger, leading to a serious economic crisis. India has severe repercussions as a result of the COVID-19 pandemic and the lockdowns that followed. Numerous people lost their lives, which had a detrimental effect on all facets of the macroeconomic structure of the nation. Furthermore, there has been a rise in stock market volatility as a result of the contagion, which is thought to negatively affect stock returns. The World Health Organization (WHO) reported the first COVID-19 case in Wuhan, China, on December 31, 2019 (WHO, 2020). In addition, on March 11, 2020, COVID-19 was declared a pandemic; it quickly emerged as the fifth known pandemic since the 1918 influenza. There have been 608 million confirmed cases of COVID-19 reported worldwide as of September 11, 2022. An estimated 6.5 million deaths were attributed to the disease in this count. January 27, 2020, was the first documented case of the virus in India.

Humans have already experienced a number of pandemics, such as those brought on by the H1N1 virus in 1918 and 1920, the H2N2 virus in 1957 and 1958, SARS in 2002 and 2003, the swine flu in 2009 and 2010, MERS in 2012, and Ebola in 2014– 2016. Such pandemics not only have a negative impact on human health and life, but they also have a negative impact on economies generally and financial markets specifically. The body of existing literature makes it clear that stock markets responded to pandemic dynamics and outbreaks. The majority of research investigations came to the conclusion that the pandemic negatively affected stock market performance. The primary cause of this is the unfavorable attitudes of the investors.

According to the prior event study, investors' investing behavior is influenced by unforeseen events such as the "Black Swan Event." According to research studies, investors' attitudes are influenced by media reports regarding unexpected events since unfavorable stories affect investor’s moods and can result in either a high or low volume of trading on the market.

According to the literature, media outlet’s constant stream of information about the coronavirus caused panic situations, which in turn caused market volatility to spike. On the other hand, the unfavorable circumstance, wherein the entire globe is battling the fatal illness, has given the nation a chance to assess how the infection has affected investor trading behavior. Within this framework, the current research endeavor’s to comprehend the influence of the COVID-19 epidemic on the trading practices of investors in India. Epidemics and pandemics have an impact on a country's economy in addition to its residents' health.

The effects of pandemics and historical epidemics on the economy differ significantly from one another. The variances are contingent upon several aspects, including the site, severity, and historical period of the pandemics and epidemics. Given the severe economic ramifications of these epidemics, it is imperative to comprehend their influence on the economy, with a particular focus on stock markets. The study's findings suggest that Indian investor’s trading patterns are less susceptible to the COVID-19 pandemic's spread during the research period. The actions done by the Indian government to enhance the investment climate and resurrect the nation's economy are the cause for the outcome.