Abstract:
Herding tendencies are likely to be more prominent during the crisis period. The Covid 19 outbreak has been nothing less than a crisis for the world. Assuming the possibility of
Covid-19 induced herding among investors, this study attempts to examine the behaviour
in the Indian stock market (S&P BSE) by analyzing the daily returns data of 10 indices
and the S&P BSE Sensex using the CSAD model from January 01, 2015 to December 31,
2020, by dividing the period into three sets: whole period, pre Covid-19 outbreak period
and during Covid-19 outbreak period. The complete analysis is done for three different
states of the markets (general – overall market condition, bullish and bearish). The study
finds the Indian stock market to experience sector specific herding behavior during Covid 19 period under the study, in general, as well as during bullish and bearish trends.
