Title: All weather friends: How did the Russia-Ukraine war impact Indian stock markets?

Authors: Mohit Saini; Mahender Yadav; Vaibhav Aggarwal; Manoj Kumar

Addresses: Department of Commerce, Maharshi Dayanand University, Haryana, India ' Department of Commerce, Maharshi Dayanand University, Haryana, India ' O.P. Jindal Global University, Haryana, India ' Department of Commerce, Maharshi Dayanand University, Haryana, India

Abstract: The article examines the impact of the Russia-Ukraine war on the Indian economy. Data for 12 sectoral indices and Nifty 50 were retrieved from the official website of the National Stock Exchange of India. Using event study methodology, findings suggest that on the event day, India saw negative average abnormal returns that persisted up to the fifth-day post the event day. Second, the automobile sector witnessed a continued negative abnormal return until the tenth day of the event window. The banking sector was on second, which hurt the most. It observed a high negative abnormal return. As this study supports the negative impact of the war on markets, it implies that investors diversify their funds away from the warzone markets.

Keywords: war; sectoral indices; India; Russia-Ukraine; event study.

DOI: 10.1504/IJDIPE.2023.128806

International Journal of Diplomacy and Economy, 2023 Vol.9 No.1, pp.93 - 111

Received: 23 Oct 2022
Accepted: 09 Dec 2022
Published online: 06 Feb 2023 *