IMPACT OF COVID-19 ON THE RETURN CONNECTEDNESS AMONG BRICS

The present study tries to examine and compare the connectedness among the BRICS during the Covid19 period with Pre-Covid19 period. It starts with observing the similarities and dissimilarities in the pattern of stock market indexes of BRICS as well the number of newly infected cases from January 2020 to December 2020. After that the study proceeds towards analysing the change in the return connectedness among BRICS by employing Diebold-Yilmaz Spillover Index during the time when the pandemic is still prevailing compared to the Pre Covid19 period. The empirical findings suggest that in the times of crisis, international markets tend to be more correlated, hence offering lower scope for diversification as compared to the tranquil period.

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Keywords: BRICS, Covid-19, Stock Market, Financial Crisis.


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