THE IMPACT OF COVID 19 ON THE FTSE 100 INDEX IN LONDON STOCK EXCHANGE

Authore(s) : Nivetha Govindaraju;Dr. Lakshmi.P

Volume : 1312-342(ON), Issue : 08, August - 2022

Abstract : A new virus and its illness first originated in China at the end of 2019, then rapidly spread over the rest of the world and became a pandemic. This pandemic has caused a global crisis in many ways including socially, financially, and economically but most importantly a health crisis.  This  pandemic  not  only  swept  countries'  economies  but  also  had  an  impact  on financial markets. COVID-19 has had an unprecedented  impact on  the world  economy; financial markets indicate the same. This spontaneous event landed most of the stock markets into extreme volatility. Significant capital outflows and an extremely rapid fall have been observed in almost all global financial markets. Though a similar trend prevailed everywhere during this pandemic, the impact could not be accumulated in absolute terms. According to the findings it can be stated that with the increase in the number of COVID-19 cases and deaths there have been tremendous drops in the stock markets. The study analyses daily data from December 2019 to December 2021 of the FTSE 100 Index. The study also made an effort to contrast share price developments before COVID-19 and during the COVID-19 circumstance. The FTSE Index showed volatility during the epidemic period, according to the findings. When the outcome is compared to that of the pre-COVID period, it is discovered that the return on the indices was higher during that period than it was during the COVID-19 period.

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