The Impact of Israel-Hamas War on The Various Sectors of Indian Stock Market
DOI:
https://doi.org/10.12725/ujbm.69.4Keywords:
Israel-Hamas war, Event Study, Indian stock market, IndiaAbstract
This study investigates the impact of the Israel-Hamas conflict of October 2023 on the Indian stock indices and sector-based companies with a particular focus on the steel, oil and gas, defence, and pharmaceutical sectors. Employing an event study methodology, the research analyses the effects of the conflict on the respective Nifty indices and individual stocks within these critical sectors. The findings unveil a tapestry of sector-specific impacts, ranging from heightened volatility in the Nifty Oil and Gas Index due to surging crude prices to an uptick in the Nifty Defence Index, reflecting heightened security concerns. Abnormal return analyses capture the undulating market sentiments, while cumulative abnormal returns underscore the differential impact across sectors over time. The study offers invaluable insights for investors, policymakers, and stakeholders, highlighting the imperative for a nuanced, dynamic approach to investment decision-making amidst geopolitical disruptions
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