COVID-19 Vaccination Effect on Stock Market and Death Rate in India

Abstract

The COVID-19 epidemic has brought attention to the vulnerability of new illnesses, and immunization remains a viable option for resuming normal life. This paper examines the influence of COVID-19 vaccination on the death rate and the performance of stock market in India. For this study, COVID-19 vaccination and death rate data is gathered from the Ministry of Health and Family Welfare (MoHFW) portal, and the data for the stock index is taken from the Bombay Stock Exchange (BSE), India. In order to achieve a precise representation of feature significance and distribution, EDA (Exploratory Data Analysis) is utilized in this study. The impact of COVID-19 immunization on the mortality rate and stock market index is investigated using both statistical analysis and Machine Learning Regression-based models. The models are remarkably accurate in reproducing actual result. The empirical study suggests that vaccination has a strong positive impact on the stock market and reducing the death rate. Furthermore, the policies recommended by government and monetary authorities coupled with COVID-19 vaccine supported the stock market recovery in pandemic.

Winners and losers from Pfizer and Biontech’s vaccine announcement: Evidence from S&P 500 (Sub)sector indices

“…Although studies [15,44,45] show that vaccination has a stabilising impact on the capital markets, a high vaccination coverage rate is necessary to reap full benefits of vaccination programs. However, vaccine hesitancy is considered a serious problem [46,47] that needs to be addressed, especially in the developing countries [48].…”

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“…Simultáneamente, Mishra et al (2022) a través de un análisis de prueba de límites ARDL examinaron las relaciones a corto y largo plazo, demostrando el efecto positivo de la masificación de las vacunas sobre el mercado de valores norteamericano. En esta misma línea, Behera et al (2022) mostraron que, las campañas de vacunación de la población tienen un impacto positivo en el mercado de valores para el caso de la India. Coincidentemente, Apergis et al (2022) analizaron que el programa de vacunación en Canadá ha revertido los efectos negativos de la pandemia por COVID-19 sobre los rendimientos del mercado financiero.…”

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“…Behera et al. [64] studied the impact of immunization on the mortality rate and the performance of the Indian stock market. The data for the study was collected from MoHFW and BSE from February 2021 to July 2021.…”

“… Dumitrescu and Hurlin panel Granger non-causality test and pairwise Granger Causality test Behera et al. [64] Impact of immunization on the mortality rate and the performance of the Indian stock market (February 2021 to July 2021). Exploratory Data Analysis Naik et al.…”